Apple's strategic airlift: Dodging tariffs with Indian iPhones
Apple has chartered cargo flights to transport 660 tons of iPhones from India to the USA, a strategic move to circumvent the high tariffs introduced by the Trump administration.
What do you need to know?
- Apple has chartered cargo flights from India to the USA to deliver 660 tons of iPhones, which equates to approximately 1.5 million devices.
- Import duties from China can reach as high as 125 percent, whereas the tariff on imports from India has been temporarily suspended for 90 days.
- iPhone production in India contributes to 20 percent of the imports to the USA, with the remaining devices sourced from China.
Why did Apple charter flights from India?
Apple elected to charter cargo flights to bring 660 tons of iPhones from India to the USA. This strategic decision is aimed at bypassing the prohibitive tariffs imposed by the Trump administration on imports from China. These tariffs can soar to 125 percent, significantly higher than the 26 percent tariff from India, which has been suspended for a 90-day period.
Will iPhone prices in the USA rise?
Analysts caution that iPhone prices in the USA could see a significant increase. Apple relies heavily on imports from China, where most of these devices are manufactured. Should production shift to the USA, the cost of a new iPhone might escalate to about $3,500 (CAD 4,900), a sharp rise from the average price of $1,018 (CAD 1,453) in 2024.
What are Apple's plans for the future?
Apple has been actively lobbying authorities at Chennai airport in India to expedite the customs clearance process, aiming to reduce the time from 30 hours to just six. Since March, six cargo planes have taken off from India with Apple products, each with a cargo capacity of 110 tons. The company intends to continue these shipments to lessen the financial impact of tariffs on its products.
