Tech big Apple chartered cargo flights to ferry 600 tons of iPhones, or as many as 1.5 million, to the USA from India, after it stepped up manufacturing there in an effort to beat President Donald Trump’s tariffs, sources instructed Reuters.
The small print of the push present an perception into the U.S. smartphone firm’s personal technique to navigate across the Trump tariffs and construct up stock of its in style iPhones in the USA, one in every of its greatest markets.
Analysts have warned that U.S. costs of iPhones may surge, given Apple’s excessive reliance on imports from China, the primary manufacturing hub of the gadgets, which is topic to Trump’s highest tariff charge of 125%.
That determine is way in extra of the tariff of 26% on imports from India, however which is now on maintain after Trump known as a 90-day pause this week that excludes China.
Apple “wished to beat the tariff,” mentioned one of many sources aware of the planning.
The corporate lobbied Indian airport authorities to chop to 6 hours the time wanted to clear customs on the Chennai airport within the southern state of Tamil Nadu, down from 30 hours, the supply added.
The so-called “inexperienced hall” association on the airport within the Indian manufacturing hub emulated a mannequin Apple makes use of at some airports in China, the supply mentioned.
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About six cargo jets with a capability of 100 tons every have flown out since March, one in every of them this week simply as new tariffs kicked in, the supply and an Indian authorities official mentioned.
The packaged weight of an iPhone 14 and its charging cable come to about 350 grams (12.35 oz), Reuters measurements present, implying the overall cargo of 600 tons comprised about 1.5 million iPhones, after accounting for some packaging weight.
Apple and India’s aviation ministry didn’t reply to a request for remark. All of the sources sought anonymity because the technique and discussions had been personal.
Apple sells greater than 220 million iPhones a yr worldwide, with Counterpoint Analysis estimating a fifth of whole iPhone imports to the USA now come from India, and the remaining from China.
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Trump constantly elevated U.S. tariffs on China, to face at 125% by Wednesday, from 54% earlier.
On the 54% tariff charge, the $1,599 value of the top-end iPhone 16 Professional Max in the USA would have surged to $2,300, calculations based mostly on projections by Rosenblatt Securities present.
Sunday shifts
In India, Apple stepped up air shipments to satisfy its objective of a 20% enhance in regular manufacturing at iPhone vegetation, attained by including employees, and briefly extending operations on the greatest Foxconn India manufacturing unit to Sundays, the supply added.
Two different direct sources confirmed the Foxconn plant in Chennai now runs on Sundays, which is often a vacation. The plant turned out 20 million iPhones final yr, together with the most recent iPhone 15 and 16 fashions.
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As Apple diversifies its manufacturing past China, it has positioned India for a vital position. Foxconn and Tata, its two important suppliers there, have three factories in all, with two extra being constructed.
Apple spent about eight months to plan and arrange the expedited customs clearance in Chennai, and Prime Minister Narendra Modi’s authorities requested officers to help Apple, one senior Indian official mentioned.
Foxconn shipments from India to the USA surged in worth to $770 million in January and $643 million in February, in comparison with the vary of $110 million to $331 million within the prior 4 months, commercially obtainable customs information exhibits.
Greater than 85% of the January and February air shipments of Foxconn had been offloaded in Chicago, Los Angeles, New York and San Francisco.
Foxconn didn’t reply to Reuters’ queries.