In a strategic maneuver to circumvent a 10 percent tariff imposed by President Donald Trump, Apple swiftly transported five cargo planes brimming with iPhones and other devices from India to the United States over a mere three-day period.
This rapid operation unfolded in the waning days of March, as Apple sought to shield its products from the financial impact of the new tariffs, which took effect on April 5.
According to The Post Millennial, Apple has no immediate plans to increase retail prices in the U.S., despite the tariff imposition. The tech giant has been proactively relocating inventory from its manufacturing hubs in India and China to mitigate the tariff's impact. By stockpiling products in U.S. warehouses, Apple aims to maintain its current pricing structure for the foreseeable future.
A source close to the situation revealed, "Factories in India and China and other key locations had been shipping products to the U.S. in anticipation of the higher tariffs. 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."
Apple's U.S. warehouses are reportedly well-stocked, with enough inventory to last several months. While the majority of Apple's products are manufactured in India, China, and Vietnam, the company is expected to increasingly rely on India for production. This shift is driven by the fact that India faces the lowest tariffs among the three countries under the Trump administration's trade policies. Consequently, Apple is anticipated to continue moving its manufacturing operations away from China and toward India.
The potential impact of the tariffs on consumer prices is significant. Although the iPhone 16 Pro Max currently retails at $1,599, Rosenblatt Securities warns that prices could soar to as much as $2,300 if tariff-related costs are transferred to consumers. Apple is not alone in its efforts to sidestep the tariffs. Nintendo, too, has reportedly expedited shipments to avoid the financial burden.
A Financial Times report highlights that over half of Nintendo's U.S. hardware originates from Vietnam and Cambodia. In January, the company shipped more than 383,000 units of its forthcoming Switch 2 console within just five days to "get ahead of the risk of tariffs." Despite these efforts, Nintendo was compelled to delay preorders following President Trump's announcement.
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