Apple (AAPL.US) launches “anti-tariff blitz”: 600 tons of iPhones are urgently airlifted from India to the US

The Zhitong Finance App learned that, according to media reports citing information revealed by people familiar with the matter, since the Trump administration issued a signal in early March that it would levy “equal tariffs” on the world, US consumer electronics giant Apple (AAPL.US) has airlifted about 600 tons of iPhones (about 1.5 million units in total) from its iPhone manufacturing plant in India to the US market. This emergency air charter iPhone can be described as the latest move by the tech giant to increase production on a large scale in India to circumvent Trump's high tariffs.

The details of this large-scale airlift iPhone operation, which can be described as a “lightning shipment,” reveal the US smartphone provider's covert strategy of doing everything possible to bypass Trump's tariffs — quickly piling up inventory of popular iPhone models in the US, one of its biggest markets.

Apple can be described as the tech giant most severely suppressed by Trump's tariff policy among the “Big Seven US stocks”. Apple's major iPhone, AirPods, iPads, and Apple Watch core production sites around the world will all be severely suppressed by Trump's “equal tariff” policy. The “Apple Global Supply Chain” centered on the Chinese supply chain, which Apple has painstakingly operated for many years, is facing a moment of life and death. It was even teased by some investors that “Trump's new tariff policy seems to target countries that have huge trade surpluses with the US; in fact, it suppresses Apple with targeted precision.”

However, for Apple, the relatively positive news is that Trump said he has authorized the implementation of a 90-day “equal tariff suspension” measure for some countries, drastically reducing these countries' tariffs to 10% during this period. However, the Chinese supply chain, which occupies the most central position in the “Apple supply chain,” faces additional tariffs imposed by the US government of up to 125%.

Wall Street analysts generally warn that since Apple is highly dependent on the Chinese import system, which is the main iPhone production base (products made in China face the Trump administration's top tariff of 125%), iPhone sales prices in the US market may soar in the short term. This rate far exceeds the 26% parity tariff for India — but implementation of this reciprocal tariff was suspended due to Trump's announcement this week to suspend the imposition process for 90 days (excluding China).

“Apple wants to complete large-scale transportation before the tariffs come into effect,” said a source familiar with Apple's plans. The company also lobbied India's airport authorities to drastically reduce customs clearance time at Chennai airport from 30 hours to 6 hours. The source added that the “green channel” arrangement at India's iPhone manufacturing center mimics the efficient transportation model used by Apple at some airports in China.

Sources and an Indian government official said that about 6 large freighters carrying 100 tons each have taken off since March, and one of them set sail when the new tariffs came into effect this week.

According to the agency's calculation data, the total package weight of the iPhone 14 and its charging cable is about 350 grams (about 12.35 ounces), which means that the total shipping volume of 600 tons includes about 1.5 million iPhones (part of the package weight has been taken into account).

Apple and India's civil aviation department did not respond to requests for comment. All sources are requested to be anonymous, as the policies and discussions are confidential.

iPhone production line moved to the US? Wall Street calls don't work

In the 2024 fiscal year, Greater China contributed 17% of Apple's sales. However, the fact that the vast majority of products under the Apple brand are still being assembled in China makes it particularly vulnerable to fluctuations in Sino-US relations. Although Apple has tried to reduce China's dependence over the years, such as promoting production layout in Vietnam and India, it is almost impossible to completely “de-Chinize” in the short term in the face of Apple's huge size.

India is regarded as Apple's “new continent” with the most potential. Since opening an online store in 2020 and starting physical store expansion in 2023, CEO Cook has repeatedly mentioned the importance of the Indian market in earnings calls. Up to now, roughly one out of every seven iPhones is made in India.

Apple sells more than 220 million iPhones a year worldwide. According to research data from Counterpoint Research, about one-fifth of the iPhone products currently imported from the US are made in India, and the rest are basically from China's iPhone manufacturing centers. Trump continued to raise tariffs on Chinese goods, reaching 125% as of Wednesday (previously about 54%).

According to forecast data from Wall Street investment bank Rosenblatt Securities, even at a 54% tariff rate, the price of the US top iPhone 16 Pro Max at $1,599 will soar sharply to $2,300.

Trump has long believed that Apple can manufacture its iconic iPhone in the US factory, and he wants Apple to move the Asian supply chain and large manufacturing centers to the US to avoid the new tariff system. However, the analysis team from Wall Street investment bank Needham disagreed. Martin pointed out that if Apple starts producing this flagship product in the US, its cost will soar dramatically. On Wall Street, she is not alone in this concern. Dan Ives, an analyst at Wade Bush Securities, once said that if manufactured in the US, the cost of an iPhone would be as high as 3,500 US dollars.

Martin also mentioned that it will take years for Apple to move its supply chain to the US. Most high-end manufacturing supply chain experts believe that it is impossible to manufacture iPhones entirely in the US, at least during Trump's term.

Working overtime on Sunday to increase production

According to sources, Apple's Foxconn plant in Chennai has reached the goal of increasing production by 20% through measures such as increasing staff and temporarily operating on Sundays (usually a day off) in India. Two other direct sources confirmed that the plant is now operating Sunday production. The factory produced about 20 million iPhones last year, including the latest iPhone 15 and 16 basic models.

As Apple promotes a diversified global production layout, India is being given a key manufacturing role. Its main suppliers, Foxconn and Tata, have set up three large-scale manufacturing plants in the region, and two more are under construction. A senior Indian official revealed that Apple took eight months to plan and establish a rapid customs clearance mechanism in Chennai, and the Modi government requested the cooperation of officials.

According to commercial customs data, the value of consumer electronics goods such as iPhones sent by Foxconn from India to the US jumped to 770 million US dollars in January and reached 643 million US dollars in February (the previous four months remained in the range of US$113-331 million). In January-February, more than 85% of air cargo was unloaded in Chicago, Los Angeles, New York, and San Francisco. Foxconn did not respond to recent media inquiries.