A report by Reuters reveals that Apple has taken to the skies, airlifting 10.5 million iPhones via cargo flights from Chennai airport in India to the US. The tech giant has taken this strategic move to sidestep the reciprocal tariffs from Trump, as those will affect Apple’s pricing dramatically (pending what happens with tariffs going forward).
The shipment amounts to 600 tons of iPhones – what a number! It is an act to keep Apple’s foothold strong in one of its largest markets, the US, amid a shifting political landscape. Apple is extending operations in its Foxconn factory in India, to work even on Sundays.
"About 6 cargo jets with a capacity of 100 tons each have flown out since March, one of them this week just as new tariffs kicked in, the source and an Indian government official said," reported Reuters.
This move makes clear that Apple took warnings from analysts seriously. It seems like the company is pivoting toward India as a manufacturing powerhouse, diversifying its reliance on China.
Apple's main manufacturing hub is based in China, imports from which will be affected by Trump's highest tariff rate, likely rising to 125% by Wednesday from the previous 54%. To compare, India is affected by Trump’s tariff of 26% – but this is currently on hold as Trump called a 90-day pause, which just so happens to exclude China.
When taking China’s future tariff into account, US prices for the popular iPhone models will skyrocket! No wonder Apple wants to hit its goal of a 20% iPhone production increase in India now.
Counterpoint Research estimates that a fifth of Apple's US imports come from India, while the remainder comes from China. Foxconn and Wistron are Apple's primary plants in India; the company is operating three factories in total, with two more to come.
Apple joins the likes of Blackmagic and Camp Snap, who have both publicly confirmed plans to relocate manufacturing to avoid the worst of the tariffs.
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You can also find details about how Trump's tariffs could affect camera prices here.
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