In a strategic maneuver to mitigate the impact of steep U.S. tariffs, Apple has airlifted approximately 600 tons of iPhones—equating to around 1.5 million units—from India to the United States. This initiative aims to preempt the 125% tariffs imposed on Chinese imports under President Donald Trump's trade policies. By leveraging production facilities in India, where tariffs are comparatively lower at 26% and currently paused, Apple seeks to maintain competitive pricing in the U.S. market.
To facilitate this large-scale operation, Apple significantly ramped up production in India. Key supplier Foxconn increased output by 20% and introduced Sunday shifts to meet demand. Additionally, Apple collaborated with Indian authorities to expedite customs clearance at Chennai airport, reducing processing time to six hours and establishing a "green corridor" similar to its operations in China.
The results of these efforts are evident in the surge of U.S.-bound shipments from India. Foxconn's exports were valued at $770 million in January and $643 million in February, a substantial increase from the $110-$331 million range in previous months. This underscores Apple's growing reliance on Indian manufacturing as part of its strategy to diversify production away from China. Currently, an estimated 20% of Apple's U.S. imports are sourced from India.
Both Apple and India's aviation ministry have declined to comment on the airlift operation, which was strategically kept private.