5 planes loaded with iPhones sent to America from India: Apple called for shipments to avoid tariffs, company will increase manufacturing in India
Apple has sent five planes loaded with iPhones and other products from India to America in just three days in the last week of March. These shipments have been made to avoid the reciprocal tariffs imposed by US President Donald Trump’s administration.
Some media reports have published a report about this quoting a senior Indian official. The report also quoted sources as saying that despite the tariff, Apple has no plans to increase retail prices in India or other markets.
According to the report, this storage will help Apple temporarily maintain the current price. The company is also analyzing how different tariff structures at manufacturing locations will affect its supply chain.
Apple’s demand and profit margins may be affected
America remains an important market for Apple products. In such a situation, the company is working to avoid putting the burden of increased cost on consumers. This can affect both the demand and profit margin of Apple products.
Currently 10% tariff is applicable, more tariffs will be applicable from April 9
Till now only the baseline 10% tariff has been applicable. More tariffs than this are being implemented from April 9. India can play a big role in this change. This is because America will impose tariff on India at the rate of 26% while tariff will be imposed on China at the rate of 104%.
That is, Apple will have to pay less tariff to export its products from India to America as compared to China. Apple manufactures many iPhone models in its manufacturing unit in India. The company can increase the purchase of iPhones from India to reduce the tariff impact.
Apple has been working on a plan to diversify the supply chain and reduce dependence on China for a long time. In such a situation, analysts say that the growing tariff difference between China and India can give impetus to Apple’s plan.
Apple part of Government of India’s PLI scheme
All three contract manufacturers of Apple are part of the Government of India’s Rs 41,000 crore Production-Linked Incentive Scheme (PLI). Only after this scheme has iPhone manufacturing in India gained momentum. In 2020, the Government of India launched the PLI Scheme. This scheme gives companies from foreign countries an opportunity to take advantage of local manufacturing, as well as earn incentives on it.