Apple Expedites Shipment of Over 1 Million iPhones from India to Circumvent Trump Tariffs, Reports Reuters

Apple aims to distribute its iPhones to U.S. consumers before potential tariffs cause price increases.

The tech giant reportedly transported approximately 1.5 million iPhones, weighing around 600 tons, via air from India to the U.S., as reported by Reuters, citing informed sources.

To alleviate the effects of President Trump’s significant tariffs on China, Apple has implemented several strategies. This includes increasing iPhone production in India, where tariffs are significantly lower compared to those imposed on China, according to a Wall Street Journal report earlier this week. Despite this, most of Apple’s iPhones are still manufactured in China.

Apple has expanded its workforce at its main factory in India, extending working hours to help meet a production increase target of 20%, as reported by Reuters.

On April 2, Mr. Trump announced a 27% tariff on imports from India, which he later suspended for 90 days on Wednesday, alongside import duties on various other countries, as the U.S. aims to negotiate more advantageous trade agreements. In contrast, a 125% “reciprocal tariff” on China remains in force.

Apple arranged chartered cargo flights to ship smartphones to the U.S. because it “wanted to beat the tariff,” according to a source familiar with the situation who spoke to Reuters. The company reportedly spent eight months persuading Indian airport authorities to reduce the customs clearance time for the phones from 30 hours to just six hours. Since March, Apple has chartered approximately six cargo jets, as reported by Reuters, referencing two sources, one of whom is a senior Indian government official.

Apple did not respond immediately to CBS MoneyWatch’s inquiry regarding this matter.

Prices anticipated to increase

Prices for Apple products are forecasted to rise significantly due to Mr. Trump’s tariffs, with iPhone sales constituting about half of the company’s total revenue.

Apple store employees have noted substantial consumer interest in the company’s devices ahead of expected price increases. Recent findings from UBS Investment Research indicate that a 125% tariff on Chinese imports might boost the retail price of an iPhone 16 Pro Max 256 GB, which is assembled in China, by as much as 67%, raising the cost from $1,199 to $1,999.

Research conducted by Dan Ives, a tech analyst at Wedbush Securities, highlights the significance of international trade in maintaining reasonable prices for consumer electronics in the U.S. He remarked in a research note on Tuesday that if the iPhone were manufactured domestically, a $1,000 model could potentially cost $3,500.