According to a report by TOI’s Pankaj Doval, quoting sources, the tech giant had already shipped an “unusually high” number of products from its factories in India and China to the United States to build up inventory. This stockpiling took place even though it was a “relatively lean period,” enabling Apple to stay ahead of the new tariff regime.
“Factories in India and China and other key locations had been shipping products to the US in anticipation of the higher tariffs coming into play,” one source said. “The reserves that arrived at lower duty will temporarily insulate the company from the higher prices that it will need to pay for the new shipments that start coming under the revised tax rates.”
Apple’s warehouses in the US are now “sufficiently stocked up for the next few months,” with shipments from its major manufacturing hubs moving at a “frenetic pace” to beat the April 5 start of a baseline 10% tariff. Additional reciprocal tariffs—varying by country—come into effect from April 9.
The US remains one of Apple’s largest markets for products like iPhones. There are concerns within the company that passing on the entire cost burden to customers could lead to reduced demand and pressure on profit margins.
“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 added. “Such a step can only be taken once the company makes a full assessment of the supply chain and manufacturing locations, the stipulated tariffs for those countries, and how to balance the production from various regions to provide a cushion to shipments into the high-tax US market.”
Will Apple make India the apple of its eye?
The tariff hikes under President Trump could also result in India gaining a larger share of Apple’s global smartphone production. However, final decisions are likely to follow the conclusion of US negotiations with individual countries on their respective tariff rates.Apple, which accounts for nearly all of India’s roughly $9 billion smartphone exports to the US, may find expansion in India increasingly attractive. The reciprocal tariff on New Delhi currently stands at 26%, compared to a peak duty of 54% on Chinese shipments. The company primarily manufactures iPhones in India and China.
