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The great airlift: how Apple ferried 1.5M iPhones from India to the US to beat Trump tariffs

by April 10, 2025
written by April 10, 2025

Apple has airlifted around 600 tonnes, or about 1.5 million iPhones, from India to the United States, chartering cargo flights in a race to beat newly imposed tariffs under President Donald Trump’s latest trade measures, Reuters reported, citing people familiar with the matter.

The extraordinary logistical effort highlights the lengths to which the tech giant is going to shield its sales in one of its biggest markets.

Analysts have warned that prices for iPhones in the US could surge as tariffs on Chinese-made devices rise to 125%, far exceeding the 26% levy on Indian imports.

The Indian tariff, however, is currently paused under a 90-day reprieve announced by Trump this week.

“Apple wanted to beat the tariff,” said one of the sources involved in the planning, speaking on condition of anonymity given the sensitivity of the discussions.

How Apple lobbied with India for a “green corridor” for customs clearance

Apple is understood to have lobbied Indian authorities to drastically cut customs clearance times at Chennai airport from around 30 hours to just six, Reuters said.

This “green corridor” arrangement, inspired by similar processes in China, has allowed Apple to expedite the flow of high-value cargo from its Indian manufacturing hub.

Sources revealed that since March, at least six cargo planes, each capable of carrying 100 tons, have flown out of India carrying iPhones destined for the US market.

According to Reuters estimates, based on the weight of an iPhone 14 and its packaging, this amounts to roughly 1.5 million devices.

Apple, which sells more than 220 million iPhones annually worldwide, is increasingly relying on India as a manufacturing base.

Industry data indicates that around 20% of iPhone imports to the US now come from India, with the balance still largely sourced from China.

At the 54% tariff rate, the $1,599 cost of the top-end iPhone 16 Pro Max in the United States would have surged to $2,300, calculations based on projections by Rosenblatt Securities show.

Sunday shifts at Foxconn

To meet the surge in demand, Apple ramped up production at its Indian facilities, particularly at the largest Foxconn plant near Chennai, which has been operating even on Sundays—a typical day off in the country.

Last year, the plant produced about 20 million iPhones, including the latest iPhone 15 and 16 models.

Apple’s main suppliers in India, Foxconn and Tata, currently operate three factories in the country, with two more facilities under construction.

Foxconn’s shipments from India to the US soared in January and February, reaching $770 million and $643 million, respectively, far above the prior range of $110 million to $331 million in preceding months, according to trade data.

More than 85% of these shipments were delivered to major US hubs such as Chicago, Los Angeles, New York, and San Francisco.

India’s full capacity could meet 50% of US demand for iPhones

Bank of America analyst Wamsi Mohan has estimated that Apple could produce as many as 25 million iPhones in India this year.

While around 10 million units are earmarked for domestic sales, the remainder is likely to be exported, with much of it heading to the US.

“If Apple were to redirect all India-made iPhones to the US, it could meet about 50% of American demand for the device this year,” Mohan told the Wall Street Journal.

The post The great airlift: how Apple ferried 1.5M iPhones from India to the US to beat Trump tariffs appeared first on Invezz

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