Tech giant Apple has chartered cargo flights to transport 600 tonnes of iPhones—approximately 1.5 million units—from India to the United States. This strategic move comes as Apple ramps up production in India to mitigate the impact of U.S. President Donald Trump’s tariffs, which have significantly raised costs on imports from China.
The tariffs on Chinese imports, now at a staggering 125%, far exceed the 26% rate on Indian imports. Analysts warn that U.S. iPhone prices could surge, with the top-end iPhone 16 Pro Max potentially rising from $1,599 to $2,300. Apple’s efforts to build inventory in the U.S. aim to shield consumers from these price hikes.
To expedite shipments, Apple lobbied Indian airport authorities to reduce customs clearance time at Chennai airport from 30 hours to just six. This “green corridor” arrangement mirrors practices at some Chinese airports. Since March, six cargo jets, each with a 100-tonne capacity, have flown out of Chennai, including one this week as new tariffs took effect.
Apple’s production push in India has been bolstered by extended operations at Foxconn’s Chennai factory, which now runs on Sundays. The facility produced 20 million iPhones in 2024, including the latest iPhone 15 and 16 models. Foxconn and Tata, Apple’s key suppliers in India, operate three factories, with two more under construction.
India has emerged as a critical manufacturing hub for Apple, contributing to a fifth of U.S. iPhone imports. Foxconn shipments from India to the U.S. surged in value to $770 million in January and $643 million in February, compared to $110 million to $331 million in the preceding months.
Prime Minister Narendra Modi’s government has supported Apple’s efforts, facilitating expedited customs clearance and encouraging local production. As Apple diversifies its manufacturing beyond China, India’s role in its global supply chain continues to grow.
April 19, 2025 4:36 am
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