iPhones Take Flight: Apple Airlifts $2 Billion Worth from India to Outsmart Trump Tariffs

Image Source: The Hindu

Apple and its major Indian suppliers, Foxconn and Tata Electronics, conducted an unprecedented airlift of iPhones with a value of nearly $2 billion to the United States in March 2025. The move was strategic in response to outcompeting the imposition of high tariffs by President Donald Trump, and it was a turning point in the world of global tech supply chains and a showcase for India's increasing position as a manufacturing giant.

Key Points

Record-Breaking Shipments

Foxconn, Apple's biggest Indian supplier, exported a record $1.31 billion worth of iPhones to the U.S. in March 2025—the highest in a month ever, equal to its combined exports in January and February.
This was followed by Tata Electronics, which exported $612 million worth of iPhones, a 63% increase from the preceding month, including the new iPhone 15 and 16 models.
In all, close to $2 billion worth of iPhones were flown out of India to the U.S. alone in March.

Logistics and Scale

At least six cargo jets chartered were used for the operation, each with an estimated 100 tons, relocating around 600 tons or 1.5 million iPhones.
All of Foxconn's shipments were air-freighted from Chennai, India, to major American cities like Chicago, Los Angeles, and New York.
Apple won Indian officials over to slash customs clearance time at Chennai Airport from 30 hours to a mere six, establishing a "green corridor" for speedy handling.

Tariff Strategy and Impact

"Lifting" of the airlift came as a riposte to Trump's threatened tariffs: 26% for Indian imports and more than 100% for Chinese imports, the latter still in force.
By storing iPhones in the U.S. prior to the tariffs' implementation, Apple protected itself from short-term price increases and supply chain interruptions.
Trump's administration subsequently suspended most non-China tariffs for 90 days, providing a temporary reprieve for Apple and other technology companies.

India's Growing Position in Apple's Supply Chain

India currently contributes approximately 20% of the total iPhones imported to the U.S., a proportion set to increase as Apple continues to develop its manufacturing base there.
Exports of mobile phones from India increased 55% during 2024–25, with iPhones accounting for the bulk of the value.
Foxconn's plant in Chennai, which manufactured 20 million iPhones during the last year, is currently running seven days a week to keep up with demand.

Broader Implications

The action highlights Apple's faster transition away from China in the face of trade tensions and supply chain threats.
Analysts caution that without such tactics, U.S. iPhone prices would have skyrocketed by as much as 125%, crippling demand and market share.
The "tariff benefit" now makes India and Vietnam more viable for U.S.-bound electronics production, with Chinese goods still facing higher tariffs.

Sources: Economic Times, Reuters, India TV News, Times of Indiam M9 Newsm MacDailyNewsm Computerworldm Firstpost

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