New details emerged Thursday about Apple’s mad scramble to import millions of iPhones ahead of President Donald Trump’s tariffs. The company reportedly rushed 600 tons of iPhones into the United States from India last week. And, while there has been no word of a similar pre-tariff rush of iPhone imports from China, it seems unlikely Apple would overlook such an obvious move.
All this means there are surely even more iPhones, Macs, etc., stockpiled to meet U.S. consumer demand without price hikes — at least in the short term.
Apple strives to avoid Trump tariffs
Last week, Trump slapped all major manufacturing countries with heavy import tariffs in a bid to reshape international trade. This Wednesday, he reduced the import taxes to 10% on most countries, but raised them on China. Currently, the tariff on Chinese imports to the United States stands at 145%.
Apple got caught in the middle, as most of its products are assembled by Foxconn in China. To a lesser extent, assembly also happens in India, Vietnam and other countries, since Apple worked to diversify its supply chain in recent years. Still, wherever they’re made, there are new tariffs imposed by Trump.
In a clear effort to avoid iPhone price increases caused by import taxes, Apple reportedly brought in large amounts of inventory before the deadline. Word of the tactic first emerged a few days ago, but new details show the extent of Apple’s efforts to avoid iPhone price hikes.
“Apple chartered cargo flights to ferry 600 tons of iPhones, or as many as 1.5 million, to the United States from India, after it stepped up production there in an effort to beat President Donald Trump’s tariffs,” Reuters reported Thursday,
For reference, Apple sold about 25 million iPhones in the United States during the second quarter of 2024, so the last-minute rush of imports can only last so long. That said, it’s not known how many units came in from China at the same time India increased its shipping, nor how many Apple already had stockpiled. The Trump tariffs didn’t come as a surprise — the president has been threatening to impose these taxes for months. That gave Apple time to be ready.
Apple targeted at 20% increase in production at iPhone plants in India, an unnamed source told Reuters. To hit that goal, the biggest Foxconn India factory reportedly added workers and Sunday shifts, the source added.
Apple also “lobbied Indian airport authorities to cut to six hours the time needed to clear customs at the Chennai airport in the southern state of Tamil Nadu, down from 30 hours,” the source told Reuters.
Immediate iPhone price increase unlikely
Apple tries hard to avoid raising the prices of its products. The iPhone 12 released in 2020 cost $799, and the iPhone 16 introduced in 2024 cost just the same. And during the international disruptions of the COVID-19 pandemic, Apple was never forced into sudden price hikes, even though its production costs undoubtedly went up.
Given that the company now has weeks or months of inventory in the United States, and knowing its traditional disinterest in hikes, an iPhone price increase anytime soon seems very unlikely.
Long term is a different story, though. Apple can’t absorb the cost of the 145% tariff Trump imposed on Chinese imports. And there’s the potential it’ll go even higher if the trade war continues to escalate. Which explains why the value of AAPL shares dropped 15% since the latest round of Trump tariffs began.
