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In a calculated effort to sidestep President Donald Trump’s escalating tariffs, Apple has airlifted 600 tons of iPhones—roughly 1.5 million units—from India to the United States, according to sources cited by Reuters. This operation, executed via six cargo jets each with a 100-ton capacity, underscores the tech giant’s private strategy to safeguard its supply chain and maintain inventory levels in one of its largest markets amid looming trade pressures.
A Race Against Tariffs
With Trump’s tariffs on Chinese imports soaring to 125%—up from 54% earlier—Apple faced the risk of significant price hikes in the U.S. For instance, the top-end iPhone 16 Pro Max, priced at $1,599, could have jumped to $2,300 under the previous tariff rate, per Rosenblatt Securities’ estimates. In contrast, imports from India face a 26% tariff, which is currently paused for 90 days (excluding China), offering Apple a temporary window to shift logistics. “Apple wanted to beat the tariff,” a source familiar with the planning revealed, highlighting the urgency behind this move.
To expedite shipments, Apple collaborated with Indian authorities to slash customs clearance time at Chennai airport in Tamil Nadu from 30 hours to just six, mirroring its “green corridor” system in China. Flights began in March, with one departing this week as new tariffs took effect, ensuring a stockpile of iPhones reached U.S. shores ahead of potential cost increases.
Boosting India’s Role
This airlift wasn’t a spur-of-the-moment decision. Apple ramped up production in India by 20% over its usual output, adding workers and extending operations at Foxconn’s Chennai plant to include Sundays—typically a day off. The facility, which produced 20 million iPhones last year (including iPhone 15 and 16 models), played a pivotal role. Two additional sources confirmed these Sunday shifts, a clear sign of Apple’s intensified efforts.
India’s growing importance in Apple’s manufacturing diversification is evident. With Foxconn and Tata operating three factories—and two more in development—India now accounts for about 20% of U.S. iPhone imports, per Counterpoint Research, while China supplies the rest. Customs data further illustrates this shift: Foxconn’s shipments from India to the U.S. spiked to $770 million in January and $643 million in February, up from $110 million to $331 million in the prior four months. Most of these air shipments landed in major U.S. hubs like Chicago, Los Angeles, New York, and San Francisco.
Behind the Scenes
Apple’s logistics overhaul took eight months of planning, including securing expedited customs clearance in Chennai with support from Prime Minister Narendra Modi’s government. This collaboration underscores India’s emerging status as a key manufacturing hub for the company, especially as it reduces reliance on China amid trade tensions.
Market Implications
With annual global iPhone sales exceeding 220 million units, the U.S. remains a cornerstone market for Apple. Analysts have cautioned that sustained tariffs could drive up consumer prices, particularly given China’s dominant role in production. The 600-ton airlift—equivalent to 1.5 million iPhones, based on the 350-gram packaged weight of an iPhone 14—buys Apple time to assess its next steps, whether negotiating tariff exemptions or further expanding production outside China.
Neither Apple, Foxconn, nor India’s aviation ministry commented on the operation, with sources requesting anonymity due to its confidential nature. As Trump’s tariff policies reshape global trade, Apple’s swift maneuver from India reveals a proactive stance to protect its bottom line and U.S. customers—for now.
Disclaimer: This report reflects information from sources and does not constitute investment advice. Consult a financial advisor for personalized guidance.
