Apr 12, 2025, 12:00 AM
Apr 10, 2025, 12:00 AM

Apple airlifts 1.5 million iPhones from India to dodge tariffs

Highlights
  • Ahead of President Trump's tariff announcement, Apple initiated airlifting operations for iPhones from India to the US.
  • The company managed to transport around 1.5 million phones, significantly ramping up production in India to mitigate the effects of tariffs.
  • This logistical maneuver highlights Apple's strategy to safeguard its pricing and inventory before new tariffs could impact consumer costs.
Story

In early April 2025, Apple implemented a significant logistical operation to transport iPhones from India to the United States. The move was prompted by President Donald Trump's announcement of new tariffs on imports, which would affect the pricing of iPhones significantly. Apple utilized cargo flights to ship approximately 600 tons, or around 1.5 million devices, from its Indian manufacturing plants to ensure availability before these tariffs could take effect, reflecting the urgency of the situation. The company had ramped up production in India to meet escalating demand and to actively reduce reliance on Chinese manufacturing, which was subject to a much steeper tariff of 125%. Reports indicated that Apple had been preparing for this logistical endeavor for several months, coordinating closely with Indian airport authorities to expedite the customs process, cutting wait times from 30 hours to as little as six. This intense focus on improving supply chain efficiency indicated Apple's urgent desire to mitigate potential price increases for consumers in the U.S. market. The dire forecast surrounding U.S. iPhone prices stems from analysts' insights revealing that prices could surge by hundreds of dollars if the costs imposed by new tariffs were passed onto consumers. As such, experts warned that even with a temporary pause on tariffs by Trump, the eventual rise in product prices could deter many customers and impede Apple's revenue from one of its largest consumer markets. Apple's strategic decision to enhance production and shift its supply chains demonstrates not only its quick response to trade policy changes but also highlights the complex nature of international trade in the tech industry. With India poised to play an increasingly pivotal role in Apple's manufacturing strategy, many are left to wonder how these moves will impact the global smartphone market amid ongoing geopolitical tensions.

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