Apple has spoken up about how US tariffs are affecting its business, and for now, there’s some good news: your iPhone price isn’t going up just yet. But that could change depending on how trade policies evolve. During a recent earnings call, Apple CEO Tim Cook shared that the company has managed to avoid major price hikes so far by staying smart with how it handles its supply chain and inventory.
However, the future remains uncertain, especially with growing tensions over tariffs on Chinese imports. Cook said: On the pricing piece, we have nothing to announce today. The operational team has done an incredible job of optimising the supply chain and inventory, and we’ll continue to do that as much as possible. Tariffs could cost Apple nearly $1 billion Apple revealed that if the current US tariffs continue as they are, the company could face around $900 million in added costs. That’s a big number, but Apple says it’s doing everything it can to handle those costs without passing them on to customers. So far, the impact on Apple’s business in the March quarter was minimal, but the June quarter remains harder to predict. Apple airlifted iPhones from India to dodge a major crisis On April 9, 2025, Apple quietly pulled off a huge move, flying out 600 tons of iPhones from India to the US to dodge hefty import tariffs on Chinese-made goods. After former US President Donald Trump announced a steep 145% tariff on Chinese imports, Apple feared its top product, the iPhone, would get caught in the crossfire.
With 84% of iPhones, 60% of Macs, and most iPads made in China, the stakes were high. Apple generates around 70% of its revenue from China-based production. Had electronics not been exempted from the tariff, prices could have skyrocketed. Thankfully, Apple moved fast.
With production already ramping up in India, it shipped large batches directly to the US to stay ahead of the tariff timeline.
Currently, Apple operates three factories in India (run by Tata and Foxconn) and has two more under construction. India emerges as a big winner Apple’s quick pivot has put India in the spotlight. As production expands in India, it brings in more jobs, investment, and tech expertise.
More than half of the iPhones sold in the US are already made in India, and the trend is only growing stronger. This shift is a major boost for India’s electronics industry, helping it emerge as a global manufacturing hub. More tariffs may be coming soon Although electronics like smartphones and laptops are currently exempt, this protection may not last much longer.
According to US Commerce Secretary Howard Lutnick, separate tariffs on electronics—including smartphones, laptops, and semiconductors—are likely to be imposed between April and May 2025. If these go into effect, Apple may face a whole new wave of cost pressures, and product prices could rise. Keep an eye on trade talks At this point, Apple is doing its best to shield customers from the financial hit of tariffs, and prices remain steady. But with global trade rules constantly shifting, especially in an election year, things can change quickly.
If the US tightens the rules again, we could eventually see higher prices on iPhones and other tech gadgets.
