Apple is reportedly taking a drastic measure to avoid the incoming tariffs which could lead to price hikes.
According to Reuters, the iPhone maker shipped around 1.5 million iPhones - a cargo weighing roughly 600 tons - by air from India to the US. The tech-giant is reportedly taking steps to be proactive in the face of Trump's trade war. This week, he raised the tariff on Chinese imports to 125% - a staggering number that could greatly impact the price of Apple products for US customers.
The Wall Street Journal reported this week that Apple is ramping up iPhone production in India - a country with tariffs much lower than China, where over 95% of its products are still assembled.
Apple has reportedly expanded the workforce in Indian factories, and has extended shifts for existing workers, in order to reach its goal of increasing production by 20%.
Trump announced a 27% tariff on India, on April 2, which was subsequently paused for 90 days. The US is reportedly seeking better trade deals with most countries, and is already in negotiating talks with around 15, according to a member of the administration. However, Trump remains steadfast on his decision for China.
An inside source told Reuters that Apple chartered cargo flights to transport the smartphones to the US because it "wanted to beat the tariff."
Apple reportedly spent eight months lobbying Indian airport authorities to cut the phones' customs clearance time down from 30 hours to six hours. The company has chartered about six cargo jets since March, according to Reuters, who cited an senior Indian government official as one of their sources.
iPhone sales account for about half of Apple's revenue, and according to CBS news, workers have reported a strong consumer demand for the devices before the tariffs take effect.
The price of an iPhone 16 Pro Max 256 GB, which is assembled in China, could rise as much as 67%. This could see the price go from $1,199 to $1,999 - an $800 increase.
Research from Wedbush Securities tech analyst Dan Ives suggests that if the iPhone were made in the US, a $1,000 model would cost $3,500.
