Apple's cargo strategy to dodge tariffs may hike iPhone prices
Reuters reported on Thursday that Apple has chartered cargo flights to transport 600 tonnes of iPhones, or approximately 1.5 million devices, from India to the United States. This move aims to circumvent the tariffs imposed by U.S. President Donald Trump.
Analysts warn that iPhone prices in the United States could rise sharply, considering Apple’s heavy reliance on imports from China, where these devices are primarily manufactured.
The tariffs imposed by the Trump administration have a maximum rate of 125 percent. This is significantly higher than the 26 percent tariff on imports from India, which Trump suspended on Wednesday for the next 90 days.
According to a source cited by Reuters, "Apple aimed to circumvent tariffs" by transporting 600 tonnes of phones. The company lobbied the authorities at Chennai airport, in the state of Tamil Nadu in southern India, to reduce customs clearance time from 30 to six hours.
As reported by the source and a representative of the Indian government, six cargo planes have left India with Apple products since March, each carrying a load of 100 tonnes, including one this week.
Apple sells over 220 million iPhones annually worldwide. The analytical firm Counterpoint Research estimates that 20 percent of all iPhones imported to the United States come from India, with the remainder coming from China.
The value of shipments sharply increased
Reuters reported that the Foxconn factory that manufactures phones also operates on Sundays. In 2024, the company produced 20 million iPhones, including the latest models 15 and 16.
According to available customs data, Foxconn's shipments from India to the United States sharply increased to 770 million dollars in January and 643 million dollars in February, compared to the previous four months, when the value ranged between 110 million and 331 million dollars.
The Trump administration explains that introducing tariffs is meant to encourage American companies to invest domestically. However, relocating supply chains necessary for production will lead to a significant increase in prices.
Senior equity research analyst Dan Ives from the financial firm Wedbush Securities stated in a statement sent to the American edition of "Newsweek" that the cost of a new iPhone manufactured in the United States will be approximately 3,500. At the end of 2024, the average price of an iPhone was 1,018.
