Apple increased iPhone shipments 10% in bid to counter tariffs, IDC says

Apple Inc.’s iPhone unit shipments surged 10% in the first quarter as part of an effort to accelerate deliveries and avoid expected tariffs on China, according to industry tracker IDC.

The company shipped 57.9 million units during from the beginning of January through March, a rise from the 52.6 million units it delivered in the same period a year ago. The uptick isn’t necessarily because of a sudden gain in demand: IDC says the increase is due to a stockpiling effort meant to offset tariffs on goods exported from China to the US.

Apple and other consumer technology companies prepared for months for the latest Trump administration tariffs, filling up its US channel inventory with units, Bloomberg News has reported. “This supply-side surge, aimed at mitigating potential cost increases and disruptions, effectively inflated Q1 shipment figures beyond levels anticipated based on underlying consumer demand,” according to IDC.

Companies don’t need to pay tariffs on devices already stateside before the levies kick in. Shipments also grew in other regions where there were fears of disruptions and price increases. President Donald Trump introduced tariffs on items exported from China that could rise up to 145%, before that was decreased on Friday after an electronics-related exemption.

But that could be short-lived, too, with Trump saying new tariffs specifically aimed at products with semiconductors would return. Those levies, however, are expected to be far lower than the original 145%, saving consumers from the potential of hefty price hikes.

Despite the overall increase, shipments in China declined. IDC says this is because a Chinese government subsidy program on devices excluded Apple’s Pro iPhone models. Apple will provide a better sense of its actual sales during the period when it announces second-quarter results on May 1.

The rest of the smartphone industry saw shipments remain mostly flat, with the second-biggest winner being Xiaomi Corp., whose units increased 2.5%. Oppo had the biggest decline, seeing units drop about 7%. Overall, the market increased by 1.5% to 305 million. Samsung Electronics Co. was the total leader with about 61 million shipments and 20% market share, compared with Apple’s 19%.

Consumers this month dashed to Apple stores to secure an iPhone before potential price hikes, which are still in flux given the ever-changing policies from the White House. In addition to stockpiling before the tariffs came into place, Apple’s strategy to offset the tariff impact is to repurpose manufacturing in India – which would likely have a lower tariff than items from China – for US distribution. The region can now make 20% of all iPhones, which could fulfill a material portion of US demand.