Adapted by:
Javier Pastor
Senior WriterComputer scientist turned tech journalist. I've written about almost everything related to technology, but I specialize in hardware, operating systems and cryptocurrencies. I like writing about tech so much that I do it both for Xataka and Incognitosis, my personal blog.
Alba Mora
WriterAn established tech journalist, I entered the world of consumer tech by chance in 2018. In my writing and translating career, I've also covered a diverse range of topics, including entertainment, travel, science, and the economy.
At the end of 2019, Apple decided to keep manufacturing the Mac Pro in Texas to avoid the impact of the trade war with China. Five and a half years later, the company is one of many that are facing the challenge of navigating an ongoing trade conflict. According to The Times of India, Apple has already implemented some unexpected strategies to get ahead of potential tariffs.
Planes filled with iPhones. The outlet reports that at the end of March, Apple chartered five commercial aircraft in India and filled them with iPhones to ship back to the U.S. This reaction was prompted by President Donald Trump’s new reciprocal tariffs, which took effect on April 5.
Weathering the storm. If true, this strategy would allow Apple to build a significant inventory of iPhones in its U.S. stores, providing a temporarily buffer against the financial impact of the tariffs. Sources told the outlet that Apple is also relocating some of its inventory from China to the U.S., even as sales in the U.S. are reportedly slowing down.
Buy now. The recent threat of iPhone price hikes has created a sense of urgency among Apple product buyers. According to Bloomberg, Apple’s physical stores saw a significant increase in shoppers in recent days. Apple employees compared the surge in visitors and sales to the busy days of Christmas.
Diversifying for nothing. Under CEO Tim Cook’s leadership, Apple has been working for years to diversify its manufacturing strategy to reduce reliance on China. The company has shifted some of its production to countries such as Vietnam and India. However, Trump’s tariffs, which particularly affect countries in Asia, have hindered these plans.
Choosing between India and China. Trump’s tariffs currently impose a 26% rate for India, while the rate for China stands at 54%. Given the choice of where to import iPhones made outside the U.S., India becomes the “least bad” option to help mitigate the impact of tariffs.
No price increases (for the time being). It’s still too early to determine how Apple will respond to the tariffs. However, it’s likely that the company, like many others, will ultimately need to raise prices. If the information from The Times of India is accurate, chartering planes full of iPhones could provide some flexibility and time for Apple.
The company might consider raising prices globally at the same time. If Apple can delay this action in the U.S. market, it could be good news for potential buyers elsewhere in the world.
Image | Rocker Sta
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