It has been alleged that Apple is stockpiling inventory in order to avoid US tariffs.
It has been alleged that Apple is stockpiling inventory in order to avoid US tariffs.
It has been claimed that Apple is taking steps to mitigate the financial effect of the new “Liberation Day” tariffs imposed by the Trump administration. These tariffs impose significant import levies on electronic products originating from China, India, and Vietnam at the moment. The imposition of tariffs of 54% for China, 26% for India, and 46% for Vietnam will take effect on April 9, placing pressure on businesses such as Apple, whose supply chains are significantly dependent on the nations in question.
Stockpiling of Inventory
The information comes from Mark Gurman of Bloomberg.The United States has been the location where Apple has been hoarding iPhones, Macs, and other items for a number of months. Taking this action enables the corporation to circumvent the need of paying the newly implemented tariffs on goods that were already present in the nation prior to the deadline of April 9. As a consequence of this, Apple could be able to postpone the process of passing on greater prices to customers, perhaps until the arrival of the iPhone 17 series in September.
Adjustments to the Margin
There are reports that Apple intends to absorb a portion of the additional expenses by reducing its profit margins on hardware in order to mitigate the impact on the company’s finances. It is possible that the corporation, which makes a markup of around 45 percent on its hardware products on average, may reduce its margins rather than immediately raising retail prices.
In addition, it has been reported that Apple is now in the process of renegotiating contracts with its manufacturing partners and suppliers in order to cut costs across its supply chain. This involves locating components that are less expensive and negotiating reduced assembly prices in order to compensate for the additional costs associated with imports.
Plans for the Long Term
Apple is not just stockpiling for the near term, but it is also increasing its production base in order to lessen its dependence on places that are harmed by tariffs. The business is contemplating establishing a new manufacturing facility in Brazil in order to lessen the impact of long-term geopolitical trade obstacles.
Since the iPhone X was introduced in 2017 at a price of $999, Apple has not included an increase in the basic price of its flagship iPhone in the United States. On the other hand, given the present state of the market, it is becoming more probable that Apple will choose to raise the price of the iPhone 17 later this year, unless the circumstances alter.
