Finance

Apple's Bold Move: Flying iPhones from India to Dodge Trump Tariffs!

2025-04-10

Author: Ying

In a strategic move to circumvent looming tariffs, Apple is reportedly chartering cargo flights to transport iPhones from its manufacturing hubs in India straight to the United States.

Since March, the tech giant has managed to ship an impressive 600 tonnes of iPhones—approximately 1.5 million devices—from India, ramping up production in response to the financial pressures. With former President Donald Trump's proposed tariffs on Indian imports hovering at 26%, which have now been temporarily paused, the stakes are higher than ever.

While the Indian import tariffs are set at a reduced 10%, Apple is still feeling the heat from Trump's substantial tariffs on Chinese goods, where the majority of its iPhones are assembled. A staggering 145% tariff could dramatically inflate iPhone prices, with experts predicting the cost of a top-tier iPhone 16 Pro Max could skyrocket from $1,199 to nearly $2,000 if Apple passes the costs onto consumers.

In anticipation of rising production costs, Apple is eyeing a 20% increase in output from its Indian factories. This includes expanding its workforce and even extending operations at Foxconn's sprawling factory in Chennai to Sundays. Last year alone, the Chennai facility churned out 20 million iPhones, including the latest models.

A Wall Street Journal report revealed that Apple is using this strategy as a "short-term stopgap" while it seeks exemptions from the tariffs impacting productions. If Apple were to fully divert its India-made iPhones to the U.S., it could potentially fulfill half of the American demand this year, according to insights from Bank of America.

However, experts caution that relocating production to the U.S. could be financially unfeasible, given the high cost of labor. Wedbush Securities analysts have estimated that a U.S.-manufactured iPhone could soar to a staggering $3,500!

Dan Ives, a Wedbush analyst, quipped, "If consumers want a $3,500 iPhone, we should make them in New Jersey or Texas or another state." Indeed, as Apple navigates these turbulent economic waters, the future of iPhone pricing and production remains uncertain.

Apple has yet to provide an official comment on these developments.