(CTN News) – According to people familiar with the matter, Apple allegedly shipped 600 metric tons of iPhones from India to the US in order to get around President Trump’s rising tariffs on Chinese imports.
The airlift of 1.5 million iPhones to the US is one of Apple’s boldest moves in its fight against Chinese manufacture to date.
This happened after the US implemented a 125% tax on Chinese electronics, which is significantly higher than the 26% duty on Indian imports that was just halted for 90 days due to a decree from President Trump.
A source said “Apple wanted to circumvent tariff.”
Chennai airport has allowed the departure of six 100-ton chartered cargo planes since March. There will only be one flight starting this week, and new rates will also be implemented.
The iPhone 14 and the container weigh about 350 grams together, according to Reuters’ calculations.
Chennai has been introduced to the “green corridor.”
Apple urged Indian airport officials to use its “green corridor” approach, which has been used in China, to reduce the 30-hour customs process time in Chennai to only six hours.
This action was taken in order to significantly alter how it operated. According to a top official, the Indian government has expedited the approval process in order to facilitate Apple’s business growth.
In order to satisfy demand, Foxconn, the main Apple product assembler in India, hired more workers and started operating on Sundays, which are often regarded as rest days in the nation. This increased production by 20%. This was done at the facility in Chennai.
Apple’s supply chain has changed as a result of competing trade regulations.
For nearly eight months, Apple has been carefully planning this logistics change, demonstrating that the corporation needs to act quickly given the escalating trade tensions between the US and China. A 125% duty on Chinese imports is expected to result in a significant increase in iPhone costs, according to industry experts.
The high-end iPhone 16 Pro Max, which is currently priced at $1,599, may eventually cost more than $2,300 in the US if this trend continues.
India is becoming more and more important to Apple’s corporate diversification plan. According to Counterpoint data, 80% of Apple’s iPhones are still supplied from China, while 20% are being made in India for the US market.
Foxconn’s shipments from India to the US reached $770 million in January and $643 million in February, both of which were higher than monthly records. Commercial statistics are the source of this data.
These aviation shipments primarily went to New York, Los Angeles, Chicago, and San Francisco. Over 85% of those were destinations.
In India, Apple’s global expansion strategy is progressing quickly.
Two of Apple’s suppliers, Foxconn and Tata, now run three plants in India and are building two more. New Delhi has been providing significant support to Apple’s development objectives. India is a major hub for technical production worldwide.
At the end of this month, Chancellor Rachel Reeves will travel to Washington, DC, to meet with representatives of the International Monetary Fund (IMF). She wants to move trade talks along.
However, those with inside knowledge of the situation caution that it is unlikely that the current tariff conditions would settle anytime soon.
As the business develops, India might play a bigger role in Apple’s future production strategy. India will be an important part of the company’s overall production plan and act as a backup for China.
SOURCE: TN
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