Apple Flew Planeloads of iPhones Into the US Ahead of Tariffs
Credit: Hendri Lidayani
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Despite the imposition of massive tariffs on most of the countries in Apple’s supply chain last week, many analysts believe the company will try to hold the line on iPhone pricing for as long as possible. While eating the cost of the tariffs is one way to do this, Apple has also been planning ahead to ensure that it won’t have to cut into its profits too much.
Last week, Morgan Stanley told investors that “Apple has pulled forward some iPhone builds” in anticipation of the tariffs. In plain language, that means it’s been stocking up its US warehouses and stores with iPhones. Inventory already in the US won’t be subject to tariffs, as these are paid at the time of import.
While the investor note didn’t provide any specifics, a new report from The Times of India has outlined just how much effort Apple is putting into ensuring that it will be able to sell iPhones in the US unencumbered by the cost increases of the new tariffs.
“Apple transported five planes full of iPhones and other products from India to the US in just three days during the final week of March,” a senior Indian official told The Times. Getting those iPhones stateside before the tariffs come into effect saves Apple the cost of the 26% tariff that took effect on imports from India on April 5.
Another source told The Times that this has also been happening from factories in China and “other key locations” before the tariffs kick in. With tariffs on China being more than double those on India and Apple’s supply chain in that country being substantially larger, chances are there were even more iPhone-laden planes crossing the Pacific in March.
The move may be even more prescient as the trade war heats up. Earlier today, President Donald Trump announced his intention to slap an additional 50% tariff on China if it doesn’t back down on its 34% tariff increase directed at US goods entering that country.
A 104% tariff would be tough to weather even for a company as massive as Apple, but it probably doesn’t need to worry about that for a while. Sources say Apple now has enough inventory of the iPhone 16 and other key products inside US borders to meet several months of customer demand.
Sadly, that won’t protect the iPhone 17 lineup if these tariffs are still in place in September, as those aren’t ready to ship yet. A lot can change before then, but it’s hard to say whether things will get better or worse. Either way, analysts believe that the existing US inventory will help to offset any new inventory that has to come into the country under the new tariff regime, such as configure-to-order Macs, which typically ship directly from the factory.
Sources speaking to The Times believe that India stands to benefit from this trade war, as China will undoubtedly bear the brunt of the tariffs. Even if this becomes the new reality, 26% is far easier for Apple to stomach than 54%, much less the 104% that may be levied on Chinese imports by the end of this week.
This could lead to Apple moving more production out of China. India is well positioned to pick up that slack, although Apple also has factories in Vietnam, which faces similar 26% tariffs right now. India and Vietnam have also shown a greater willingness than China to negotiate with the Trump administration for lower tariffs. Meanwhile, Apple is also reported to be exploring expanding production in Brazil, which has only been hit with the baseline 10% tariff that the US has imposed on nearly every country globally.
The bottom line in all of this? If you think you’re going to purchase a current Apple product in the next few months, it’s best to do it now. Apple may be vigorously determined to hold the line on its current pricing, and it has the power to put pressure on its supply chain for better deals, but there’s also no telling where this trade war will end. The company may have no choice but to raise prices if that’s the only way to appease frustrated investors.
