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 officials confirmed. The urgent shipments were made to avoid a new 10% reciprocal tariff imposed by US President Donald Trump’s administration that took effect on April 5. Sources said that Apple currently has no plans to increase retail prices in India or other markets despite the tariffs.
To mitigate the impact, the company rapidly moved inventory from manufacturing centres in India and China to the US, even though this period is typically a slow shipping season.
“Factories in India and China and other key locations had been shipping products to the US in anticipation of the higher tariffs,” according to one source.
This stockpiling will allow Apple to maintain current pricing temporarily, the report added.
“The reserves that arrived at lower duty will temporarily insulate the company from the higher prices that it will need to pay for new shipments under the revised tax rates,” the source explained. Apple’s US warehouses are reportedly stocked for several months ahead.
“Any price hike to offset this impact cannot be limited to just the US market, but will have to be taken across key global regions, including India,” the source noted. The company is analysing how different tariff structures across manufacturing locations will affect its supply chain.
The US remains a crucial market for Apple products, and the company is working to avoid transferring increased costs to consumers, which could impact both demand and profit margins.
How India is best positioned to be Apple’s ‘safest’ bet in iPhone manufacturing
Donald Trump adminsitration also announced 26% reciprocal tariffs that will be implemented on April 9, which may influence Apple’s manufacturing strategy going forward. India is likely to play an increasingly important role in Apple’s global production
network as the company shifts more manufacturing away from China.
Currently focused on iPhone and AirPod production in India, Apple essentially stands to benefit from a tariff advantage, with Indian exports facing a 26% reciprocal tariff to the US compared to the 54% levied on Chinese goods.
This substantial 28-percentage-point difference creates compelling economic incentives for Apple to accelerate its manufacturing transition to India. The company already accounts for most of India’s nearly $9 billion in smartphone exports to the US, though production shifts will likely depend on final US tariff terms with various countries.
Recently, a report by The Wall Street Journal says that the US may also source more iPhones from India as it aims to reduce the impact of Trump tariffs.
Fearing steep iPhone price hikes due to new US tariffs on Chinese goods, many Americans are also rushing to upgrade their iPhones, anticipating costs could nearly double once the tariffs take effect. Reports have suggested that an iPhone may cost up to $3,500 after tariffs are implemented and Apple fails to find a solution to keep prices in check.
According to a latest report by Reuters, Apple moved iPhones from India to Americaon 6 chartered cargo flights for this. About 1.5 million iPhones, weighing 600 tons, were shipped. Apple also sped up customs clearance at Chennai airport.
