Apple ships five iPhone-loaded flights to US to dodge Trump tariff

In a dramatic move to counter US President Donald Trump's new 10% reciprocal tariff, tech giant, Apple flew five cargo planes loaded with iPhones and other products from India and China to the United States in just three days at the end of March.

Senior Indian officials confirmed that the last-minute operation was aimed at stockpiling devices before the tariffs took effect on April 5.

Apple’s proactive strategy was driven by a desire to maintain pricing stability in its key markets.

Although March is typically a low-activity period for shipments, the company accelerated exports to ensure US warehouses were well-stocked with tariff-free inventory.

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Temporary price shield

According to sources, the early shipments allow Apple to delay price increases that would otherwise be necessary due to higher import duties.

This buffer also helps Apple avoid passing additional costs to consumers, preserving demand and protecting profit margins. While Apple has no immediate plans to raise retail prices in India or other global markets, any future hike may not remain limited to the US.

Apple is reportedly not planning to increase retail prices in India or other major markets for now.

By securing early shipments, the company will be able to keep its pricing structure intact while it reassesses supply chain costs under the revised US trade regime.

This buffer also helps Apple avoid passing additional costs to consumers, preserving demand and protecting profit margins.

“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,” a media source noted.

However, any eventual price increase will likely affect global markets, not just the US.

India emerges as winner

India’s role in Apple’s supply chain is growing rapidly. As US tariffs on Chinese goods climb as high as 54%, Indian exports face only a 26% duty, creating a compelling incentive for Apple to shift more production to India.

Thus, Apple gains a significant cost advantage by ramping up Indian production. The company is currently evaluating how tariff structures across various countries could shape future manufacturing and logistics decisions.

With the US remaining a core market, the tech giant is working hard to avoid passing added costs to consumers, protecting both margins and demand in a highly competitive global landscape.

As Apple studies varying tariff regimes to refine its manufacturing strategy, India is shaping up to be a strategic alternative to China in the long run.

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