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News

Apple Airlifts 1.5 Million iPhones from India to US to Beat Tariffs

Apple Airlifts 1.5 Million iPhones from India to US to Beat Tariffs
RTX
April 10, 2025

Apple has quietly flown an estimated 1.5 million iPhones from India to the United States in a bid to circumvent steep import tariffs imposed by the Trump administration on Chinese-made goods, sources familiar with the matter told Reuters.

The tech giant used chartered cargo flights to transport approximately 600 tonnes of iPhones—equivalent to six flights carrying 100 tonnes each—from Chennai, India, beginning in March. The move is part of Apple’s broader strategy to reduce dependence on China for manufacturing and avoid the impact of tariffs that could sharply drive up iPhone prices in the US.

According to analysts, Apple’s shift comes amid concerns that US iPhone prices could skyrocket due to a new 125% tariff on imports from China. In contrast, Indian-made iPhones currently face a 26% tariff—now temporarily suspended for 90 days following a recent pause announced by President Donald Trump.

“Apple wanted to beat the tariff,” one source said, describing the urgency behind the operation. The company reportedly lobbied Indian officials to speed up customs clearance at Chennai airport—from 30 hours to just six—through a “green corridor” system modeled after similar fast-track setups Apple uses in Chinese airports.

The push has seen Apple increase production at its largest Indian facility, operated by Foxconn in Chennai. Sunday shifts—rare in the Indian manufacturing calendar—were added to meet a 20% surge in output. The plant, which produced around 20 million iPhones last year, has been producing the latest iPhone 15 and 16 models.

The scale of Apple’s India-to-US exports has surged dramatically. Customs data shows that Foxconn’s shipments from India to the US jumped to $770 million in January and $643 million in February, a substantial leap from the $110 million to $331 million range seen in the previous four months. Most shipments were offloaded in major cities such as Chicago, Los Angeles, New York, and San Francisco.

India is now playing an increasingly critical role in Apple’s global supply chain, accounting for about 20% of iPhone imports to the US, according to Counterpoint Research. China still produces the majority, but the geopolitical climate and rising tariffs have made diversification a strategic necessity.

Apple worked for nearly eight months to establish the customs fast-track in Chennai. Sources said the Indian government, under Prime Minister Narendra Modi, supported the company’s efforts, viewing Apple’s expansion as a boost to the country’s growing tech manufacturing sector.

Neither Apple nor India’s aviation ministry have commented publicly on the developments.

With two additional iPhone manufacturing facilities under construction in India by Foxconn and Tata, Apple’s shift to the subcontinent signals a long-term pivot in its global production strategy.

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