In response to escalating trade tensions and substantial tariffs imposed by the Trump administration, Apple has executed a strategic shift in its supply chain by airlifting approximately 600 tons of iPhones from India to the United States.
This move aims to circumvent the steep 125% tariffs on Chinese imports, leveraging India’s more favorable tariff rate of 26%, which has been temporarily paused for 90 days.
Accelerated Production in India
To meet this objective, Apple significantly ramped up its production capabilities in India. The company increased output by 20% at its Foxconn facilities in Chennai, Tamil Nadu, by adding workers and extending operations to include Sundays, a day typically reserved for rest. This expansion underscores Apple’s commitment to diversifying its manufacturing footprint beyond China.
Apple collaborated with Indian authorities to expedite the customs clearance process at Chennai airport, reducing it from 30 hours to just six. This “green corridor” initiative mirrors similar strategies employed by Apple in China, facilitating swift transportation of goods. Consequently, since March, at least six cargo flights, each carrying around 100 tons, have transported approximately 1.5 million iPhones to the U.S.
Impact on U.S. Market and Pricing
By proactively increasing shipments from India, Apple aims to mitigate potential price hikes for U.S. consumers. Analysts had warned that the 125% tariff on Chinese imports could have increased the cost of the iPhone 16 Pro Max from $1,599 to approximately $2,300. This strategic maneuver helps maintain more stable pricing and ensures a steady supply of products in the U.S. market.
This development highlights India’s ascending prominence in Apple’s global supply chain. In 2024, Apple exported over $17 billion worth of iPhones from India, reflecting a concerted effort to diversify manufacturing operations and reduce dependency on China. As trade policies continue to shift, Apple’s reliance on India may become a long-term blueprint, not just a temporary fix.
Apple’s Stock Shows Resilience
Apple’s shares have reflected investor confidence in the company’s global strategy. While the broader tech sector has been volatile, Apple’s stock has remained relatively stable, recently trading above $180. Investors seem encouraged by Apple’s proactive supply chain management and its ability to navigate political headwinds without jeopardizing product availability or pricing.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over 8 years of experience covering the crypto, blockchain and fintech industries, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics.
Source: https://coindoo.com/apple-moves-600-tons-of-iphones-from-india-to-avoid-trump-tariffs/