Amidst fears that escalating trade tariffs could lead to a massively expensive iPhone, Apple CEO Tim Cook appears to have successfully dodged the bullet. The new iPhone Air was introduced at a starting price of $999, far from the “doomsday predictions” of a $2,000 device, thanks to a series of shrewd supply chain adjustments.
Faced with the threat of steep levies on goods imported from China, Apple has been proactive. A major part of its strategy has been diversifying its manufacturing base, significantly increasing iPhone production in countries like India. This reduces its exposure to policies targeted specifically at China.
In the short term, Apple has also reportedly engaged in a massive logistics operation, air-freighting large quantities of iPhones to the US before tariff deadlines could take effect. This preemptive move helped build a buffer of untaxed inventory, allowing the company to maintain its pricing structure for the fall launch season.
While the geopolitical situation remains a threat, Cook’s management of the complex global supply chain has, for now, protected consumers from sticker shock. The launch of the iPhone 17 lineup at familiar price points is a quiet victory for Apple’s operational strategy.