Overview

• Apple has increased iPhone shipments from India to the U.S., where a 26% tariff applies, as a temporary measure to offset the higher 54% tariff on Chinese imports.
• The company has stockpiled inventory in the U.S., delaying immediate price increases for several months as it evaluates further strategies.
• Analysts predict premium iPhone models could exceed $2,000, with some estimates suggesting prices may approach $3,500 if Apple passes on the full tariff-related costs to consumers.
• Apple is pursuing a multi-pronged approach, including negotiating with suppliers for cost reductions, absorbing some costs, and seeking tariff exemptions from the U.S. government.
• Despite efforts to diversify its supply chain, Apple has ruled out significant shifts in manufacturing locations, citing the complexity and cost of relocating production.