Key points
- Apple wants to get its iPhones into hands of US customers before tariffs could lead to hike in prices
- The iPhone maker shipped around 1.5 million iPhones by air from India to US: Reuters
- Apple continues to make most iPhones in China
ISLAMABAD: Apple wants to get its iPhones into the hands of US customers before tariffs could lead to hike prices, according to US media reports.
The iPhone maker shipped around 1.5 million iPhones, a cargo weighing roughly 600 tons, by air from India to the US, Reuters reported.
The technology giant has taken a number of measures to mitigate the impact of US President Donald Trump’s steep tariffs on China. According to media reports, Apple continues to make most iPhones in China.
Apple has also added workers in its main India factory, extending shifts to reach its goal of ramping up production by 20 per cent, Reuters reported.
“Reciprocal tariff”
Trump on April 2 announced a 27 per cent tariff on India, which Trump on Wednesday paused for 90 days along with import taxes on dozens of other nations as the United States seeks to negotiate more favourable trade deals. By contrast, a 125 per cent “reciprocal tariff” on China remains in effect.
Apple chartered cargo flights to transport the smartphones to the US because it “wanted to beat the tariff,” Reuters reported. Apple reportedly spent eight months lobbying Indian airport authorities to cut the phones’ customs clearance time down from 30 hours to six hours. The company has chartered about six cargo jets since March, Reuters reported.
However, Apple did not immediately respond to CBS MoneyWatch’s request for comment on the matter, according to MSN.
Apple product prices are expected to rise sharply under Trump’s tariffs. iPhone sales account for about half of the company’s revenue.
Apple store workers report strong consumer demand for the company’s devices before potential price hikes take effect.
