Apple airlifted 600 tonnes of iPhones from India to the United States using cargo flights, Reuters reported citing sources familiar with the matter. The company was racing to beat the newly imposed tariffs as part of President Donald Trump’s new trade measures.
The tech giant goes to extraordinary lengths to protect its sales in its largest market.
Analysts have warned of a possible price spike for iPhones as tariffs on Chinese devices reach 125%. This is far more than the 26% tax on Indian imports.
The 90-day reprieve Trump announced this week has temporarily halted the Indian tariff.
One of the sources involved with the planning said, “Apple wanted the tariff to be lower,” speaking under condition of anonymity due to the sensitive nature of the discussions.
How Apple lobbied India for a green corridor for customs clearance
Reuters reported that Apple is believed to have lobbied Indian officials to drastically reduce the customs clearance time at Chennai airport, from 30 hours to only six.
Apple’s Indian manufacturing hub has been able to speed up the flow of high value cargo thanks to this “green corridor” arrangement. It was inspired by similar processes used in China.
Sources have revealed that at least six cargo aircraft, each capable to carry 100 tons, have flown from India since March with iPhones bound for the US market.
According to Reuters, based on the estimated weight of an iPhone 14 with its packaging, that’s about 1.5 million devices.
Apple, which sells over 220 million iPhones a year worldwide, is increasingly dependent on India as a base of manufacturing.
Industry data shows that around 20% of iPhones imported to the US are now sourced from India. The balance is still largely sourced primarily from China.
Rosenblatt Securities’ projections show that the cost of the iPhone 16 Pro Max would have risen to $2,300 at the 54% tariff.
Sunday shifts at Foxconn
Apple has increased production at its Indian plants to meet the demand surge, especially at the largest Foxconn facility near Chennai. This plant has been running even on Sundays, a day off for most Indians.
The plant produced 20 million iPhones last year, including the iPhone 15 and 16 models.
Foxconn and Tata are Apple’s two main suppliers in India. They currently have three factories operating in the country. Two more are under construction.
According to trade data, Foxconn’s shipments to the US from India soared to $770 million in January and $643 in February, respectively. This is a far cry from the previous range of $110 to $331 in the preceding months.
More than 85% were delivered to major US hubs like Chicago, Los Angeles New York and San Francisco.
India’s full capacity can meet 50% of US demand.
Wamsi Mohan, a Bank of America analyst, has estimated that Apple may produce up to 25 million iPhones this year in India.
The remainder of the units will likely be exported. Most of them are headed to the US.
Mohan told The Wall Street Journal that if Apple were to send all iPhones made in India to the US it could meet 50% of the American demand for this device.
This post The great Airlift: How Apple transported 1.5mn iPhones to the US from India to beat Trump tariffs first appeared on The ICD
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