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SCM Spectrum > Blog > Industries > High Tech / Electronics > Apple Airlifts $2 Billion Worth of iPhones from India to Avoid U.S. Tariffs
SCM SPECTRUM - Apple airlifts $2B worth of iPhones from India, marking a major step in diversifying its global supply chain.
High Tech / ElectronicsIndustriesNews

Apple Airlifts $2 Billion Worth of iPhones from India to Avoid U.S. Tariffs

Last updated: April 17, 2025 12:38 pm
By Meenakshi SR 7 Min Read
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Apple airlifts $2B worth of iPhones from India, marking a major step in diversifying its global supply chain.
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In a strategic move to navigate the evolving global trade landscape, Apple turned to India in March 2025. The tech giant airlifted nearly $2 billion worth of iPhones, which equates to about 600 tons, from its manufacturing plants in India to the United States. This decision followed the announcement of tariffs on Chinese goods by the Trump administration, which set a 10% reciprocal tariff on imports from countries like India. Apple’s decision to shift its manufacturing and logistics strategy to India underscores the company’s agility and strategic foresight in adapting to changing market conditions.

Contents
Strategic Shift Amidst U.S. TariffsIndia’s Growing Role in Apple’s Supply ChainFoxconn’s Record-Breaking ExportsTemporary Relief from U.S. TariffsConclusion: Apple’s Strategic Adaptation to a Changing World

The airlift, which took place over a span of several weeks, involved six chartered cargo flights from Chennai, marking the company’s largest-ever monthly export from India. In addition to its significant scale, this operation highlights Apple’s determination to maintain its competitive edge in the U.S. market despite the looming threat of new tariffs. This move was more than just a logistical exercise; it was a bold step to safeguard profits and ensure that Apple could continue to supply its U.S. customers without a sharp increase in product prices.

Strategic Shift Amidst U.S. Tariffs

The decision to airlift iPhones came in response to the Trump administration’s April 5th deadline for tariffs, which included a 10% reciprocal tariff on imports from countries like India. As a result of these changes, Apple quickly shifted its logistics operations to avoid the full brunt of the tariffs. While India too was subject to tariffs, its 26% duty was considerably lower than China’s, which faced a 125% tariff. Apple opted to expedite shipments from India to ensure it had sufficient stock in the U.S. before the tariffs took effect.

As a consequence, Apple was able to mitigate potential price hikes and minimize disruption in the U.S. market. By leveraging its existing manufacturing base in India, Apple avoided the immediate fallout from the tariffs and ensured that its customers could continue purchasing iPhones without worrying about steep price increases. This move demonstrates the importance of diversifying supply chains and building manufacturing capacities outside of China, which had been a source of dependency for Apple for years.

India’s Growing Role in Apple’s Supply Chain

India’s significance in Apple’s manufacturing strategy has increased substantially over recent years. In fact, India now contributes around 10–15% of global iPhone assembly, a considerable increase compared to previous years. Apple has set its sights on increasing this percentage to 25% by 2025. This ambitious goal reflects India’s growing role as a global manufacturing hub, capable of supporting not only Apple but other international brands seeking to diversify their supply chains.

India has become an attractive alternative to China due to its cost-effective labor and supportive government policies aimed at bolstering its manufacturing sector. The Indian government’s push for domestic production through initiatives like the Production-Linked Incentive (PLI) scheme has also contributed to Apple’s increasing investment in the country. As a result, the company has been able to ramp up production without being overly reliant on any single country or region.

Foxconn’s Record-Breaking Exports

The scale of this operation was further highlighted by Foxconn, Apple’s primary supplier in India. Foxconn, known for assembling Apple’s iPhones, reported record exports worth $1.31 billion in March 2025 alone. This marked the highest monthly export figures ever recorded by Foxconn in India, underscoring the increasing importance of the Indian manufacturing base in global supply chains.

Foxconn’s success in India is a direct result of the company’s long-term investment in local manufacturing facilities and its ability to ramp up production to meet Apple’s growing demand. This achievement is a clear indication of how the global supply chain landscape is shifting and how companies like Apple are increasingly turning to India to meet their production needs.

Temporary Relief from U.S. Tariffs

Just as Apple was finalizing its airlift operations, the Trump administration announced a 90-day pause on some of the newly implemented tariffs. This included the exclusion of tariffs on smart devices, such as smartphones, and certain other electronic products. While the relief did not extend to Chinese imports, it provided Apple with a temporary reprieve in the U.S. market.

The pause allowed Apple to stabilize its pricing strategy while maintaining a steady flow of iPhones to U.S. consumers. However, the company’s diversification efforts are expected to continue, as the global trade environment remains unpredictable. India’s role in Apple’s supply chain will only grow more significant as the company seeks to mitigate risks associated with future tariffs and trade tensions.

Conclusion: Apple’s Strategic Adaptation to a Changing World

Apple’s recent airlift operation underscores the company’s ability to adapt to rapidly changing global trade dynamics. By shifting production and logistics to India, Apple not only avoided the financial impact of U.S. tariffs but also reinforced India’s position as a key player in its manufacturing strategy. This move highlights the growing trend of supply chain diversification, as companies increasingly seek alternatives to China for their production needs. As Apple continues to invest in India, its presence in the country is set to expand, further cementing India’s role as a critical hub for global electronics manufacturing.

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TAGGED:AppleApple IndiaElectronics ManufacturingExportFoxconnGlobal Supply ChainIndiaiPhone productioniPhonesManufacturingPLI schemeTrade StrategyTrade TensionsU.S. Tariffs
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