Companies react strategically to tariff raise:
Apple transported five planes full of iPhones and other products from India to the US in just three days during the final week of March. The urgent shipments were made to avoid a new 10% reciprocal tariff.
Although Apple’s headquater is in California, iPhones are manufactured overseas—China, India.
Apple currently assembles the entire iPhone 15 and iPhone 16 lineups in India as well as China. A 10% baseline tariff on all imports into the United States kicked in on Saturday. On April 9, the tariffs that Trump has falsely labeled as “reciprocal” will kick in. This will raise the tariff rate on imports from China to 54% and imports from India to 27%.
By stockpiling as much inventory as possible in the United States, Apple can delay the impact of the tariffs. It’s unclear just how much inventory Apple has on hand in the US right now, but if there’s one thing I know, it’s to never doubt Tim Cook’s supply chain prowess.
If Apple is able to stockpile enough iPhone inventory in the US for the foreseeable future, it could stave off having to increase iPhone prices until the iPhone 17 launch this fall. Its other products, however, might not be so lucky. For example, most build-to-order configurations of the Mac ship straight from Apple’s factories in China to consumers in the United States.
AAPL stock is down nearly 5% today and down 18% in the last five days on the impact of Trump’s tariffs.
9to5mac. Apple is racing to fly planes of iPhones into the US ahead of Trump’s tariffs
Relating the previous posts: My Ex, Apple PR, and the Economics of (Not) Buying an iPhone — should you buy an iPhone/Macbook/iPad right now, or wait?
Giving this sudden new information: YES. Buy NOW!
Should you buy an iPhone right now?
By Chance Miller in 9to5mac。
On April 5, a 10% “baseline” tariff will kick in on all imports into the United States. Imports from China, where Apple manufacturers the vast majority of iPhones and Macs, will be hit with a 54% tariff. Imports from India, which is responsible for 10-15% of iPhone assembly, will face a 27% tariff. Imports from Vietnam, where Apple makes various models of AirPods, iPad, and Apple Watch, will face a 46% tariff.
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The immediate possibility is that existing iPhones get more expensive in the coming weeks. I don’t see a world in which Apple is willing to eat the cost of these tariffs.
What about the iPhone 17?
Apple is likely to announce the iPhone 17 lineup in September. It’s rumored to be the biggest update to the iPhone lineup in years, including a new design language, better performance, camera upgrades, and more. There’s also the rumored iPhone 17 Air, which will be Apple’s thinnest iPhone ever, measuring just 5.5mm at its thinnest point.
In general, I advise people to buy an iPhone when they need one, regardless of what time of the year it is. For people that are teetering on the edge of needing a new iPhone but have more flexibility, I tell people to try and hold out for that year’s new iPhone once we hit the June-July timeframe.
This year, my advice is shaping up to be different. I think that if you think you’ll need a new iPhone anytime within the next six months, now is the time to buy. Sure, you might miss out on the bells and whistles of the new iPhone 17 coming this fall, but you’ll pay a lot less than someone buying an iPhone a few weeks from now.
The current selling iPhones would soon get more expensive, the new iPhone 17 coming this fall would be MORE expensive—“Waiting for the iPhone 17 might cost you a lot more than just new features.”