Apple Considers Importing More iPhones from India to Avoid Tariffs
Short-Term Measure to Avoid Additional Costs
Apple is considering importing more iPhones from India to side-step the 54% additional tariffs on goods imported from China that U.S. President Donald Trump announced last week, the Wall Street Journal reported, citing anonymous sources.
The company sees this as a short-term measure while it seeks to negotiate with the Trump administration to get an exemption from the tariffs, as it doesn’t yet want to revamp its supply chain built around China, the report said.
Impact of Tariffs on iPhone Prices
Compared to the new 54% tariffs on Chinese-made goods, the U.S. has proposed a 26% tariffs on goods imported from India. If the tariffs aren’t brought down and Apple continues to import iPhones from China, an iPhone 16 Pro that cost $550 to import before tariffs, could cost an additional $300 now.
Apple’s Production Plans in India
Apple was on track to make 25 million iPhones in India this year, with 10 million units for the local market, the Wall Street Journal cited Bank of America analyst Wamsi Mohan as saying. He said that if Apple decided to import all 25 million iPhones to the U.S., it would satisfy about 50% of the demand in the U.S. market.
Conclusion
Apple’s decision to consider importing more iPhones from India is a short-term measure to avoid the additional costs of tariffs on Chinese-made goods. While the company seeks to negotiate with the Trump administration for an exemption, it is exploring alternative options to minimize the impact of tariffs on its business.
FAQs
Q: Why is Apple considering importing more iPhones from India?
A: Apple is considering importing more iPhones from India to avoid the 54% additional tariffs on goods imported from China, announced by U.S. President Donald Trump.
Q: How many iPhones does Apple plan to produce in India this year?
A: Apple plans to produce 25 million iPhones in India this year, with 10 million units for the local market.
Q: What would be the impact on iPhone prices if Apple continues to import iPhones from China?
A: An iPhone 16 Pro that cost $550 to import before tariffs could cost an additional $300 now if Apple continues to import iPhones from China.
Q: Would importing all 25 million iPhones from India satisfy the demand in the U.S. market?
A: Yes, according to Bank of America analyst Wamsi Mohan, importing all 25 million iPhones from India would satisfy about 50% of the demand in the U.S. market.
