Apple Reclaims Top Spot After $400 Billion Rally, Airlifts 600 Tons Of iPhones From India

Just after briefly losing its position as the world's most valuable company to Microsoft, Apple has made a powerful comeback. On Thursday, the tech giant regained its top spot by adding around $400 billion to its market capitalization during Wednesday's trading session.

This rebound followed a dramatic 15 per cent surge in Apple's stock, its biggest single-day gain since 1998, according to CNBC, after U.S. President Donald Trump announced a 90-day pause on his administration's proposed "reciprocal tariffs."

The rally followed a steep decline earlier in the week, with Apple suffering its worst four-day slide, wiping out nearly a year's worth of market gains. Fears over the potential impact of sweeping tariffs had severely shaken investor confidence, especially given Apple's reliance on a complex global supply chain. The surprise tariff pause flipped investor sentiment overnight, but market watchers remain uncertain about how long the optimism will last.

Tariff Pause Eases Pressure-But Not For Long

The temporary relief targets production hubs in Vietnam and India, where Apple has been gradually increasing manufacturing capacity. Tariffs on Vietnamese goods were reduced from 46 per cent to 10 per cent, and tariffs on Indian goods dropped from 26 per cent to 10 per cent.

While this offers short-term relief, Apple is still heavily exposed to China. A new U.S. tariff of 125 per cent on Chinese goods, up from 54 per cent, threatens to drive up production costs for Apple products still manufactured there.

Trade War Risks Linger As China Hits Back

Escalating tensions were further amplified as China retaliated with an 84 per cent tariff on U.S. goods, fueling concerns that Apple could lose ground in China-its third-largest market by revenue. With both sides digging in, Apple finds itself caught in the middle of an intensifying trade war, which could directly impact its global pricing strategy and supply chain efficiency.

Apple Airlifts iPhones From India To Avoid Tariff Hit

In a bold logistical move, Apple has reportedly begun airlifting iPhones from India to the United States to get ahead of potential tariff costs. According to a Reuters report, the company has transported approximately 600 tons of iPhones, roughly 1.5 million units, via chartered cargo flights since March.

A source close to the matter revealed to Reuters that Apple expedited this plan to "beat the tariff," and spent eight months lobbying Indian airport authorities to reduce customs clearance time from 30 hours to just six. This effort appears to be part of Apple's broader strategy to lean more heavily on India for manufacturing amid trade instability.

To support this shift, Apple has ramped up operations at its primary Indian factory. The company has added workers, extended shifts, and targeted a 20 per cent production increase, Reuters reported. This not only highlights Apple's intent to diversify its supply chain but also reflects the growing strategic importance of India in the company's global production roadmap.

Looking Ahead: Relief Rally Or Temporary Bounce?

While the massive rally restored Apple's position at the top and injected confidence into the market, questions remain. The 90-day pause offers only temporary relief, and with heightened tariffs on Chinese goods and retaliatory measures from China, the path forward remains uncertain. Apple's ability to navigate the shifting geopolitical landscape will be crucial to maintaining its valuation and growth momentum in the coming quarters.