Tuesday 15 / April / 2025
CHENNAI: In a high-stakes logistical maneuver, Apple Inc. has orchestrated an airlift of approximately 1.5 million iPhones—600 tons of cargo—from southern India to the United States, a strategic move to circumvent President Donald J. Trump’s escalating tariffs on imported electronics, according to sources familiar with the operation. The effort underscores India’s burgeoning role as a global manufacturing hub and Apple’s deft navigation of geopolitical trade tensions.
The operation, which involved chartering six cargo jets from Chennai, highlights Apple’s push to bolster its supply chain resilience while maintaining its foothold in the U.S., one of its largest markets. The airlifts, which began in March and continued as recently as this week, were designed to stockpile iPhones ahead of new tariffs that took effect Wednesday, sources said. Each jet, capable of carrying 100 tons, ferried the equivalent of about 250,000 iPhones, based on Reuters measurements estimating the packaged weight of an iPhone 14 and its charger at roughly 350 grams.
Apple’s urgency was driven by Trump’s trade policies, which have imposed a 125 percent tariff on goods from China, the traditional epicenter of iPhone production. By contrast, imports from India face a more modest 26 percent tariff, which Trump temporarily suspended this week for 90 days, excluding China. “Apple wanted to beat the tariff,” one source familiar with the planning told media.
To execute the airlifts, Apple worked closely with Indian authorities to streamline customs processes at Chennai International Airport, slashing clearance times from 30 hours to just six, the source said. This expedited “green corridor” mirrored systems Apple employs at select Chinese airports, reflecting India’s growing alignment with global supply chain standards. The arrangement, which took eight months to establish, received high-level support from Prime Minister Narendra Modi’s government, which has prioritized attracting foreign investment to bolster India’s manufacturing sector, a senior Indian official confirmed.
India’s cooperation underscores its emergence as a linchpin in Apple’s diversification strategy. With two major suppliers—Taiwan-based Foxconn and India’s Tata Group—operating three factories in the country and two more under construction, India now accounts for roughly 20 percent of iPhone imports to the U.S., according to Counterpoint Research. Last year, Foxconn’s flagship plant in Chennai alone produced 20 million iPhones, including the latest iPhone 15 and 16 models.
Apple’s efforts in India extend beyond logistics. To meet its goal of a 20 percent production increase, the company ramped up operations at the Foxconn facility, adding workers and extending shifts to include Sundays, traditionally a day off, two sources confirmed. The hustle reflects India’s favorable labor policies and infrastructure improvements, which have made it an attractive alternative to China amid U.S.-China trade frictions.
The airlifts come as Trump’s tariffs threaten to reshape the economics of the smartphone industry. At China’s previous 54 percent tariff rate, the $1,599 iPhone 16 Pro Max would have cost American consumers $2,300, according to projections by Rosenblatt Securities. The current 125 percent tariff could push prices even higher, potentially dampening demand for Apple’s flagship product, which drives a significant portion of its $391 billion in annual revenue. Globally, Apple sells more than 220 million iPhones a year, with the U.S. accounting for nearly half of its market.
India’s lower tariff rate, even before the temporary suspension, offered Apple a critical buffer. By accelerating production and exports from India, the company has not only mitigated costs but also signaled confidence in India’s manufacturing ecosystem. Modi’s government has rolled out incentives, including subsidies and tax breaks, to lure tech giants, positioning India as a counterweight to China in global supply chains. Apple’s investments, which include plans to produce one in four iPhones in India by 2028, align with these ambitions.
For India, Apple’s expanded presence is a boon. The tech giant’s operations have created thousands of jobs, particularly in Tamil Nadu, where Chennai has emerged as a tech manufacturing hub. Foxconn’s factory employs over 40,000 workers, many of them young women from rural areas, offering economic mobility in a country where unemployment remains a challenge. Local universities have also begun tailoring engineering programs to meet the needs of companies like Apple, fostering a skilled workforce.
Beyond economics, Apple’s success in India reflects a broader narrative of innovation and adaptability. The country’s digital infrastructure, including widespread 5G networks and a booming startup scene, complements its manufacturing push. Events like the annual India Mobile Congress showcase India’s tech aspirations, with Apple often cited as a model for foreign companies integrating into the local economy.
Apple and India’s aviation ministry did not respond to requests for comment, and all sources requested anonymity due to the confidential nature of the discussions.
As Trump’s tariffs loom, Apple’s airlifts from Chennai illustrate a delicate dance between policy, profit, and pragmatism. For now, India’s role as a manufacturing powerhouse ensures that American consumers can still access their iPhones—without the full sting of trade wars. Whether this model can scale to meet Apple’s global ambitions remains to be seen, but in Chennai’s bustling factories and humming cargo jets, the future of tech manufacturing is taking flight.
