Apple Customers Rush to Buy iPhones Amid Fears Tariffs Could Cause Price Hikes
Ahead of when new reciprocal tariffs go into effect on April 9, Apple customers are scrambling to buy devices before prices go up. Multiple Apple employees that spoke to Bloomberg said their stores have been packed with customers "panic-buying" iPhones. "Almost every customer asked me if prices were going to go up soon," one Apple worker was quoted as saying.
The rush at retail stores was comparable to the busyness of a holiday season, with Apple providing no guidance on what employees should tell customers. Apple's retail stores reportedly experienced higher sales on April 5 and 6 than they have in prior years during the same time period.
Apple has been preparing for the tariffs and has stockpiled iPhones and other devices in the United States. According to The Times of India, Apple shipped five planes full of iPhones and other devices from India to the U.S. during the final week of March, while also bringing in iPhones from China during what is traditionally a slow time. The reserves, which could last for several months, will allow Apple to avoid price increases in the near term.
Earlier today, The Wall Street Journal said that Apple would mitigate some of the tariff impact by importing more iPhones to the U.S. from India, as India has a lower tariff rate than China. Apple could meet as much as 50 percent of U.S. iPhone demand with devices sourced from India. Apple has to pay a 26 percent tariff on goods from India, but China's rate is at 54 percent.
Apple stock has fallen almost 20 percent since last Wednesday, but Apple has not commented publicly on the tariff situation. The company has an earnings call planned for May 1, which is when we could hear more about Apple's mitigation plan.
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