Amid fears of potential price hikes due to new tariffs imposed by the Trump administration, many customers are engaging in panic buying of iPhones. Reports indicate that Apple retail stores have been overwhelmed with shoppers rushing to purchase devices in anticipation of increased costs. This surge resembles the busy atmosphere typically associated with the holiday shopping season, yet it occurs in April, an otherwise quiet time for sales.

In response to this unexpected demand, Apple has taken proactive measures. The company has stockpiled iPhones and ramped up imports to ensure availability. A recent report highlighted how Apple dispatched five planes filled with iPhones to the U.S. in late March, aiming to stay ahead of the impending tariffs.

By increasing imports from China during an ordinarily slow period, Apple has positioned itself well to meet customer needs for several months without having to raise prices. The implications of these tariffs are significant, especially since much of Apple’s manufacturing occurs abroad, particularly in China and India. While there is speculation about the possibility of moving production to the United States as a long-term solution, analysts believe this is unlikely.

Moving iPhone production domestically would pose challenges, as the American workforce may not be equipped for the scale and nature of work Apple requires. To navigate this complex situation, Apple plans to shift more of its sourcing to India, which benefits from a lower tariff rate compared to China. By optimizing its supply chain in this way, Apple aims to cushion itself against the financial impact of the tariffs while still meeting consumer demand.