Apple reportedly preventively shipped five planeloads of iPhones, PCs, and other devices from India to the U.S. in late March to avoid paying 10% import duty in the U.S. and to temporarily stabilize prices in America, reports The Times of India. By sending five aircraft laden with smartphones and PCs, the company stocked its warehouses for the next few months, according to TrendForce.
This move gives Apple an inventory buffer in its largest market. With stocks full, the company now has time to assess how the new tariffs policy affects its supply chain and adjust its operations accordingly without a rush. Though it remains to be seen how exactly the massive import duties imposed by the Trump administration will affect its operations in the U.S., Apple did not comment on the story, so we do not know how accurate the report is, hence, take it with a grain of salt.
Apple's manufacturing base spans several countries. According to TechNews, all models of iPhone are produced in China, but 15% of iPhones are made in India. Some parts come from Vietnam. Macs are produced in China, Vietnam, and in Texas (though quantities of the latter are small since the site only builds ultra-high-end models). iPads and Watches are built mainly in China, though some are assembled in Vietnam. Earbuds are mostly produced in Vietnam, with some made in China.
While the new U.S. government's tariffs policy affects over 180 nations, Apple may benefit from spreading its supply chain. The U.S. now imposes a 26% duty on Indian goods, which is still lower than the 54% applied to Chinese imports and 46% on Vietnamese products. However, given the limited output of Apple's (well, Foxconn's) production capacity in India, the company will still have to ship many products from China and pay the duties, which will affect its costs and prices in the U.S.
Foxconn, Apple's main production partner, has been expanding its production capacities outside of Asia, specifically in Mexico. Hence, it is possible that some of Apple's products will be assembled in Mexico over time, though we can only wonder when this is set to happen.
