In a major strategic move to avoid soaring import tariffs, Apple has reportedly flown out around 600 tons of iPhones from India to the United States. The move comes amid the rising U.S.-China trade tensions and is seen as part of Apple’s broader strategy to diversify its manufacturing base beyond China.
Massive iPhone Shipment from India to the US
- Apple used chartered cargo flights to transport as many as 1.5 million iPhones from India.
- Around six cargo jets (each with a 100-ton capacity) were deployed for the task.
- The airlift began in March, and one of the jets reportedly flew just as new tariffs came into effect.
Beating the Trump Tariffs: A strategic push
- Apple’s goal: Avoid 125 per cent tariffs on Chinese imports under President Donald Trump’s revised trade policy.
- In comparison, imports from India face only 26 per cent tariffs, though this rate is currently on hold after a 90-day pause announced by Trump.
- To put it in perspective, a USD 1,599 (around Rs 1.33 lakh) iPhone 16 Pro Max would rise to USD 2,300 (around Rs 1.92 lakh) under the 125 per cent tariff, per Rosenblatt Securities.
Customs fast-tracking in Chennai
- Apple lobbied for a “green corridor” at Chennai airport to reduce customs clearance time from 30 hours to just 6 hours.
- This emulates Apple’s fast-track model used in Chinese airports.
- Indian officials reportedly cooperated with Apple’s request to support faster clearances.
India becomes a key manufacturing hub
- Apple aims to boost production by 20 per cent at its Indian factories.
- Foxconn's plant in Chennai now operates on Sundays—a significant shift from the usual schedule.
- The plant produced 20 million iPhones last year, including iPhone 15 and 16 models.
- Apple’s suppliers in India include Foxconn and Tata, who are currently building two more factories in addition to the existing three.
Surge in exports from India
- Foxconn’s shipments to the U.S. from India surged to USD 770 million (around Rs 6,420 crore) in January and USD 643 million (around Rs 5,360 crore) in February.
- Previously, monthly exports ranged between USD 110 million and USD 331 million (Rs 920 crore to Rs 2,750 crore).
- Over 85 per cent of these air shipments landed in Chicago, Los Angeles, New York, and San Francisco.