Apple Aims to Increase iPhone Inventory in the US Amid Tariff Concerns
In response to recent tariff impositions, Apple has rapidly expanded its iPhone inventory in the United States by airlifting over a million devices from India within just a month. Since March, the company has utilized six cargo jets for this operation, successfully transporting approximately 1.5 million iPhones.
Details of the Airlift Operation
Each cargo jet has a capacity of about 100 tons, facilitating significant bulk shipments of iPhones from India to the US. Recent reports indicate that Apple has been instrumental in streamlining the customs process, effectively reducing clearance times at Indian airports from 30 hours to just 6 hours.
Impact of Tariffs on Apple
Earlier this week, President Donald Trump imposed a 26% tariff rate on imports from India. However, he later announced a temporary suspension of tariffs for 90 days across India and 60 other countries. In a turn of events, the administration raised duties to 125% when considering imports from China, Apple’s principal manufacturing hub. Following the positive development regarding the tariff suspension, Apple’s stock surged by 15%, adding $400 billion to its market valuation and reaching a market capitalization of $2.8 trillion.
Strategic Response to Tariff Challenges
The initiative to airlift iPhones is a strategic move by Apple to mitigate the impact of tariffs while bolstering inventory for US consumers. According to industry insiders, Apple aims to circumvent tariff consequences with this expedited shipping method.
Production Expansion Plans
While approximately 90% of Apple’s iPhones are still manufactured in China, the tech giant has been diversifying its production capabilities. It has operations in India, Vietnam, and Thailand, with aspirations to assemble more than 50 million iPhones in India by 2027. This expansion is projected to allow India to contribute to 25% of global iPhone production.
This year alone, reports suggest Apple is set to manufacture 25 million iPhones in India, which, if sold in the US market, could satisfy about half of domestic demand.
Price Predictions Amid Tariff Pressures
Although Apple has not yet adjusted iPhone prices in response to these tariffs, analysts from UBS speculate that the prices for the highest-end models could increase by as much as $350. As of now, the company is expected to feel the effects of tariffs from July into the fourth quarter based on its existing US stock imports.
Apple’s Market Position
Apple remains the leading smartphone vendor in the US, commanding a substantial market share of 52% with over 220 million smartphones sold annually across its primary markets, including the US, China, and Europe.