New Delhi: Sources told Reuters that tech giant Apple rented 600 tons of iPhones (or as much as 1.5 million) cargo flights to the U.S. from India after it stepped up production to beat President Donald Trump’s tariffs.
The details promoted provide in-depth insights into the private strategy of US smartphone companies to navigate around Trump’s tariffs and build its inventory of popular iPhones in the U.S., one of its largest markets.
Analysts warn that given Apple’s high reliance on Chinese imports, the main manufacturing center for equipment, which is Trump’s highest tariff rate of 125%.
The figure far exceeds the 26% tariff on imports from India, but has been put on hold after Trump said a 90-day pause this week.
Apple “want to beat tariffs,” a source familiar with the plan.
Sources added that the company lobbies the Indian airport authorities to drop from 30 hours on the six hours required to clear customs at Chennai Airport in southern Tamil Nadu.
Sources said the so-called “green corridor” arrangement at the airports of the Indian Made Center mimicked the model Apple used at some airports in China.
Sources and an Indian government official said about 100-ton capacity cargo planes have flown out since March, and one of them is just like a new tariff was launched this week.
Reuters measurements show that the iPhone 14 and its charging cables weigh about 350 grams (12.35 ounces), meaning that after considering a certain packaging weight, the total cargo is about 600 tons.
The Ministry of Aviation of Apple and India did not respond to requests for comment. All sources seek anonymity because the strategy and discussion are private.
Apple sells more than 220 million iPhones worldwide each year, and contrary research estimates that one-fifth of iPhones imported to the United States now comes from India and the rest comes from China.
Trump has consistently raised U.S. tariffs on China to 125% on Wednesday, up 125% from early 54%.
The cost of the high-end iPhone 16 Pro Max with a 54% tariff rate of $1,599 will soar to $2,300, according to Rosenblatt Securities’ forecast.
Sunday shifts
In India, Apple has stepped up its air freight to meet its goal of a 20% increase in production at iPhone plants by increasing workers and temporarily expanding operations at the largest Foxconn Indian plant to Sunday, the source added.
Two other direct sources confirmed that the Foxconn factory in Chennai is now operating on Sunday, which is usually a holiday. The factory had 20 million iPhones last year, including the latest iPhone 15 and 16 models.
As Apple diversifies in manufacturing outside of China, it has positioned India as a key role. There are three factories, Foxconn and Tata, two major suppliers there, and two factories have been built.
Apple spent about eight months planning and establishing expedited tariffs in Chennai, a senior Indian official said, and Prime Minister Narendra Modi’s government asked officials to support Apple.
The value of Foxconn goods from India to the United States soared to $770 million in January and to $643 million in February, compared with the range of $110 million to $331 million in the first four months, commercially available customs data show.
More than 85% of Foxconn’s air cargo in January and February were unloaded in Chicago, Los Angeles, New York and San Francisco.
Foxconn did not respond to Reuters’ questions.
