How Apple Plans to Keep its $999 iPhone Air Affordable Despite Tariffs

The announcement of the $999 iPhone Air comes with an unspoken achievement: Apple’s success, so far, in shielding its customers from the financial impact of US-China trade tensions. The company has employed a multi-pronged strategy to absorb the pressure of looming tariffs and keep its flagship products from skyrocketing in price.
CEO Tim Cook has been the architect of this defensive plan. A key move has been the significant diversification of Apple’s supply chain, with a major push to ramp up iPhone production in India. This reduces the company’s reliance on China and mitigates the risk of being hit by steep levies targeted at Chinese goods.
Another tactic has been more direct: Apple has reportedly been flying hundreds of tonnes of iPhones into the United States ahead of tariff deadlines. This allows the company to build up inventory that is not subject to the new taxes, creating a buffer that protects near-term pricing for launches like the iPhone 17 lineup.
While these measures have prevented the nightmare scenario of a “$2,000 iPhone,” the situation remains fluid. The stability of the iPhone Air’s $999 price tag depends on the outcome of ongoing trade negotiations. For now, Apple’s logistical prowess is allowing it to launch its thinnest phone ever without an equally thin profit margin.