Tech giant Apple chartered cargo flights to ferry 600 tons of iPhones, or as many as 1.5 million, to the United States from India after it ramped up production there in a move to circumvent President Donald Trump’s tariffs, sources informed Reuters.
The specifics of this initiative offer a glimpse into the U.S. smartphone maker’s covert strategy to navigate around the Trump tariffs and build up inventory of its popular iPhones in the United States, one of its largest markets.
Analysts have cautioned that U.S. prices of iPhones could surge, given Apple’s significant reliance on imports from China, the primary manufacturing hub for these devices, which is subject to Trump’s highest tariff rate of 125%.
That figure considerably exceeds the 26% tariff on imports from India, which is currently on hold following Trump’s announcement this week of a 90-day pause that excludes China.
Apple “wanted to beat the tariff,” stated one of the sources familiar with the planning.
The company lobbied Indian airport authorities to reduce the customs clearance time at Chennai airport in the southern state of Tamil Nadu to six hours, down from 30 hours, the source added.
The so-called “green corridor” arrangement at the airport in the Indian manufacturing hub mirrored a model Apple employs at certain airports in China, the source indicated.
Approximately six cargo jets, each with a 100-ton capacity, have departed since March, including one this week just as new tariffs were implemented, according to the source and an Indian government official.
Reuters’ measurements indicate that the packaged weight of an iPhone 14 and its charging cable is about 350 grams (12.35 oz), suggesting that the total cargo of 600 tons comprised roughly 1.5 million iPhones, after factoring in some packaging weight.
Apple and India’s aviation ministry did not respond to requests for comment. All sources requested anonymity as the strategy and discussions were private.
Apple sells over 220 million iPhones annually worldwide, with Counterpoint Research estimating that a fifth of total iPhone imports to the United States now originate from India, with the remainder coming from China.
Trump consistently increased U.S. tariffs on China, reaching 125% by Wednesday, up from 54% previously.
At the 54% tariff rate, the $1,599 cost of the top-end iPhone 16 Pro Max in the United States would have surged to $2,300, based on calculations derived from projections by Rosenblatt Securities.
SUNDAY SHIFTS
In India, Apple increased air shipments to meet its target of a 20% boost in regular production at iPhone plants, achieved by hiring more workers and temporarily extending operations at the largest Foxconn India factory to Sundays, the source further noted.
Two other direct sources confirmed that the Foxconn plant in Chennai is now operational on Sundays, which is typically a day off. The plant produced 20 million iPhones last year, including the latest iPhone 15 and 16 models.
As Apple diversifies its manufacturing beyond China, it has positioned India for a crucial role. Foxconn and Tata, its two primary suppliers there, have a total of three factories, with two more under construction.
It took Apple approximately eight months to plan and establish the expedited customs clearance in Chennai, and Prime Minister Narendra Modi’s government instructed officials to support Apple, a senior Indian official stated.
Commercially available customs data reveals that Foxconn’s shipments from India to the United States surged in value to $770 million in January and $643 million in February, compared to the range of $110 million to $331 million in the preceding four months.
More than 85% of Foxconn’s January and February air shipments were offloaded in Chicago, Los Angeles, New York, and San Francisco.
Foxconn did not respond to Reuters’ inquiries.
