Apple has reportedly organized cargo flights to move 600 tons of iPhones, or roughly 1.5 million items, from India to the United States as a part of the tech big’s technique to ramp up manufacturing there and bypass tariffs imposed by President Donald Trump.
The particulars of the push present an perception into the U.S. smartphone firm’s non-public technique to navigate across the Trump tariffs and construct up a listing of its in style iPhones within the United States, one in every of its greatest markets.
Analysts have warned that U.S. costs of iPhones may surge, given Apple’s excessive reliance on imports from China, the primary manufacturing hub of the gadgets, which is topic to Trump’s highest tariff charge of 125%.
That determine is way in extra of the tariff of 26% on imports from India, however it’s now on maintain after Trump known as for a 90-day pause this week that excludes China.
Apple “wanted to beat the tariff,” one of many sources conversant in the planning advised Reuters.
The firm lobbied Indian airport authorities to chop to 6 hours the time wanted to clear customs on the Chennai airport within the southern state of Tamil Nadu, down from 30 hours, the supply added.
The so-called “green corridor” association on the airport within the Indian manufacturing hub emulated a mannequin Apple makes use of at some airports in China, the supply stated.
About six cargo jets with a capability of 100 tons every have flown out since March, one in every of them this week simply as new tariffs kicked in, the supply and an Indian authorities official stated.
The packaged weight of an iPhone 14 and its charging cable come to about 350 grams (12.35 oz), Reuters measurements present, implying the full cargo of 600 tons comprised about 1.5 million iPhones, after accounting for some packaging weight.
Apple and India’s aviation ministry didn’t reply to a request for remark. All the sources sought anonymity because the technique and discussions have been non-public.
Apple sells greater than 220 million iPhones a 12 months worldwide, with Counterpoint Research estimating {that a} fifth of whole iPhone imports to the United States now come from India, and the remainder from China.
Trump constantly elevated U.S. tariffs on China, to face at 125% by Wednesday, from 54% earlier.
At the 54% tariff charge, the $1,599 value of the top-end iPhone 16 Pro Max within the United States would have surged to $2,300, calculations based mostly on projections by Rosenblatt Securities present.
Sunday shifts
In India, Apple stepped up air shipments to fulfill its purpose of a 20% improve in common manufacturing at iPhone crops, attained by including staff and quickly extending operations on the greatest Foxconn India manufacturing facility to Sundays, the supply added.
Two different direct sources confirmed that the Foxconn plant in Chennai now runs on Sundays, which is usually a vacation. The plant turned out 20 million iPhones final 12 months, together with the most recent iPhone 15 and 16 fashions.
As Apple diversifies its manufacturing past China, it has positioned India for a vital position. Foxconn and Tata, its two foremost suppliers there, have three factories in all, with two extra being constructed.
Apple spent about eight months to plan and arrange the expedited customs clearance in Chennai, and Prime Minister Narendra Modi’s authorities requested officers to help Apple, one senior Indian official stated.
Foxconn shipments from India to the United States surged in worth to $770 million in January and $643 million in February, in comparison with the vary of $110 million to $331 million within the prior 4 months, commercially obtainable customs knowledge reveals.
More than 85% of the January and February air shipments of Foxconn have been offloaded in Chicago, Los Angeles, New York and San Francisco.
Source: www.dailysabah.com