From the Wall Street Journal, April 7:
Levies on Chinese goods have created worst three-day rout for iPhone maker in about 25 years
Apple plans to send more iPhones to the U.S. from India to offset the high cost of China tariffs, people familiar with the matter said.
The adjustments are a short-term stopgap while Apple attempts to win an exemption from President Trump’s tariffs—which Chief Executive Tim Cook obtained during the first Trump administration. The company sees the current situation as too uncertain to upend long-term investments in its supply chain, which is centered around China, the people said.
Trump’s new tariff package raises levies on Chinese goods to at least 54% while imposing a 26% rate on Indian goods. On Monday, Trump threatened to add to China tariffs if the country doesn’t remove the retaliatory duties they announced after U.S. tariff plans were revealed on April 2.
The iPhone is Apple’s signature product and makes up about 50% of its revenue. The company’s heavy reliance on China for manufacturing has spooked investors concerned about its exposure to tariffs, leading to a 19% decline in its shares, their worst three-day performance in nearly 25 years.
Before tariffs were announced, Apple was on pace to make about 25 million iPhones in India this year, said Bank of America analyst Wamsi Mohan. Normally, around 10 million of those would supply the local Indian market. If Apple were to redirect all India-made iPhones to the U.S., it could meet about 50% of American demand for the device this year, he said. Apple has been working to increase its India iPhone production for years.
The tariff on Chinese goods could add about $300 to the current $550 hardware cost to Apple of an iPhone 16 Pro that currently retails for $1,100, according to TechInsights. Apple could limit the damage by importing phones from India where the tariff is about half as high....
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