Apple Moves 1.5 Million iPhones to Escape Tariffs

 iPhones

 Reuters: Apple Moves 1.5 Million iPhones to Escape Tariffs

Reuters quoted sources as saying that tech giant Apple has chartered cargo flights to transport 600 tons of iPhones, or up to 1.5 million units, to the United States from India after ramping up production there in an attempt to mitigate the impact of tariffs imposed by US President Donald Trump.

The details of the move offer insight into Apple's strategy for dealing with Trump's tariffs and building up inventory of its popular phones in the United States, one of its largest markets.

Analysts warn that iPhone prices in the United States could skyrocket due to Apple's heavy reliance on imports from China, the major device manufacturing hub, which is subject to the highest tariff rate imposed by Trump, currently at 125 percent.

This rate far exceeds the 26 percent tariff on imports from India, which has now been halted after Trump announced a 90-day suspension, but exempted China. A source familiar with the plan said Apple "wanted to avoid the tariffs."

The source added that the company had lobbied airport authorities in India to reduce the time required to clear customs at Chennai Airport in the southern state of Tamil Nadu to six hours from 30.

The source said the so-called "green corridor" arrangement at the airport, located in India's manufacturing hub, mimics a model the company uses at some airports in China.

The source and an Indian government official said that about six cargo planes, each capable of carrying 100 tons, have left the country since March, including one this week as new tariffs came into effect.

According to Reuters calculations, the combined weight of an iPhone 14 and its charging cable is about 350 grams, meaning the total weight of 600 tons would consist of about 1.5 million iPhones, including some packaging.

Apple and the Indian Ministry of Aviation did not respond to requests for comment. All sources requested anonymity due to the confidentiality of the strategy and discussions.

Apple sells more than 220 million iPhones worldwide annually. Counterpoint Research estimates that about 20 percent of total iPhone imports into the United States now come from India, with the remainder coming from China.

Trump has been steadily raising US tariffs on China, which reached 125 percent on Wednesday, up from 54 percent in a previous round of tariffs.

Calculations based on Rosenblatt Securities' forecasts show that the price of the most expensive iPhone 16 Pro Max in the United States would have risen from $1,599 to $2,300 when the tariff rate on China was 54 percent.