Part 7/10:
Tariff Impact and Market Dynamics
A pivotal reason for Apple’s supply chain diversification stems from the looming tariffs on goods imported from China, projected to significantly inflate prices on iPhones. As of April, US tariffs on goods imported from India are substantially lower than those imposed on Chinese imports, creating a financial incentive for Apple to bolster its manufacturing presence in India and Vietnam rather than China.
Reports indicate Apple is preemptively stockpiling products in anticipation of tariff hikes, with massive airlifts of iPhones from India to the US setting records. This logistical groundwork aims to mitigate the potential fallout from a 145% tariff on Chinese-made iPhones, contrasting sharply with the more lenient tariffs on Indian-made devices.