There’s a lot going on in the world right now as President Trump last week announced tariffs on imports from other countries. Fearing a potential price increase, many customers are flocking to Apple Stores to buy new iPhones and other products before they get more expensive.
Customers buying iPhones before price hike due to US tariffs
Employees from different Apple Stores across the US told Bloomberg on Monday that they had seen an increase in demand for products, especially iPhones. According to these employees, many customers have been asking about price increases due to the new tariffs announced by Trump.
“Almost every customer asked me if prices were going to go up soon,” said an Apple employee. “People are just rushing in worried and asking questions,” another employee said.
According to sources familiar with the matter, Apple hasn’t provided guidance for retail employees on how to answer these questions or deal with the higher demand. Other employees compare the current demand with the lines when there’s a new iPhone or during the holiday season. There are also reports on Reddit and other social networks about customers buying new Macs this week fearing the new tariffs.
The US government will tax products from China and India at 34% and 26% respectively. Apple assembles most of its products in these two countries. Trump claims that the new tariffs are “reciprocal” to what each country already charges on products imported from the US.
Although Apple won’t say what will happen next, a report this morning revealed that Apple has flown five planes full of products from India and China in just a few days. This way, the company will have enough inventory to keep the products at their current prices for longer.
Another report claims that Apple has been considering expanding its facilities in Brazil in partnership with Foxconn since the country was taxed at 10% by Trump – less than China and India. Apple’s shares have already dropped more than 18% since the new tariffs were announced last week and the same has happened to other US companies.
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