How Apple airlifted 600-tons of iPhones to beat Trump's tariffs
What's the story
In a swift response to impending US tariffs, Apple executed a significant logistical operation.
The tech giant airlifted approximately 1.5 million iPhones, weighing roughly 600 tons, from its manufacturing hubs in India and China to the US within 72 hours.
The move was intended to avoid a 10% reciprocal tariff that came into effect on April 5.
By expediting shipments, Apple aims to maintain current pricing and shield consumers from potential cost increases.
Inventory management
Apple adopted measures to boost production by 20%
Apple pushed for faster customs clearance, brought in additional workers, and even operated its India plant on a Sunday—all to boost production by 20%.
The company's US warehouses are reportedly stocked for months ahead, thanks to the rapid transport of inventory from manufacturing hubs in India and China.
The move was made despite the slow shipping season, with factories in these countries preparing for higher tariffs.
Pricing strategy
Apple has no immediate plans to raise retail prices
Despite the new tariffs, Apple has no immediate plans to raise retail prices in India or other markets.
The company's proactive stockpiling strategy will allow it to keep its current pricing for a while longer.
"The reserves that arrived at lower duty will temporarily insulate the company from the higher prices that it will need to pay for new shipments under the revised tax rates," an insider told The Times of India.
Manufacturing shift
India's role in Apple's global production network
The Trump administration had planned to impose a 26% reciprocal tariff on India starting April 9, a move that could have disrupted Apple's manufacturing plans.
However, Trump has put all reciprocal tariffs on hold for 90 days—excluding China, which remains subject to a steep 125% duty.
India is expected to become an increasingly important part of Apple's global production network as the company moves more manufacturing out of China.