Apple is bracing for a major shakeup in its global manufacturing strategy as new U.S. tariffs threaten to raise the cost of importing devices from key production countries—including India and Vietnam. As per Bloomberg’s Mark Gurman, these levies could soon impact iPhone 17 pricing, with the launch set for September.
Starting April 9, the U.S. will impose tariffs ranging from 20% to 46% on goods imported from countries that play a crucial role in Apple’s supply chain. India, where iPhones and AirPods are assembled, will be hit with a 26% tariff, while Vietnam—responsible for iPads, Macs, Apple Watches, and more—faces a steep 46% duty.
To cope, Apple is expected to pursue a mix of strategies:
- Negotiating cost reductions with suppliers
- Absorbing part of the cost, even if it means tighter profit margins
- Passing on some costs to consumers, which could make iPhone 17 more expensive
Analysts believe Apple may soften the blow through trade-in programs, installment payment options, or possibly revive a device subscription model, where customers pay monthly for access to Apple products.
In the background, Apple is diversifying its supply chain, potentially prioritizing shipping from India to avoid higher tariffs on China-made goods. The company is also reportedly stockpiling inventory in the U.S. to buffer short-term disruptions.
Despite CEO Tim Cook’s ongoing efforts to navigate U.S. trade policy, Apple has not received any exemptions. An official response from the company regarding the new tariffs is still pending.
