Tariff regulations about to be established this month, Apple has shared its prospective plans to reduce and mitigate the burden of tariff in the nation. As per a report from Wall Street, Journal Apple’s new resolution for the tariff increase would be to import more iPhones from India.
The report suggests that the 26% tariff on goods imports from India would be much lower than the 54% they would have to bear if the phones were to be imported from China. Beyond China, Apple had planned to ship the new iPhones from locations like Vietnam. They would have had to bear a tariff charge of around 46% and 36% if they had shipped phones from Thailand.
Supply Chain Changes ?
Apple still hasn’t made any significant changes to their supply chain arrangement, as the tariff situation is as of yet uncertain. With the majority of imports being diverted to India Apple would be able to offset the cost of the tariff in China. This would be a short-term plan for the brand while it’s seemingly in a pursuit to persuade Trump to offer them an exemption. Trump had allowed for such an arrangement during his first term.
Apple has been working to ramp up manufacturing in India and would be redirecting the Indian made phones to us for absorbing the tariff hit. As per reports, Apple can possibly quench about 50% of the demand it witnesses by directing more India-manufactured devices to the US.
New Manufacturing Units In US
Apple would possibly be strategizing different moves to ensure that the tariff hikes are not reflected by price increases yet, but in the long term the brand would have to move a significant amount of manufacturing operations to the United States or raise the prices of their phones. Apple had previously shared plans to spend close to $500 billion on U.S. manufacturing. Here Apple would be aiming to manufacture Apple Intelligence servers and other similar products that have overall lower demand.
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