Apple has taken significant steps to mitigate the impact of U.S. tariffs on Chinese imports by airlifting 600 tons of iPhones from India to the United States. This bold move underscores the company’s strategic pivot towards increasing its manufacturing footprint in India, aiming to reduce its reliance on China amidst ongoing trade tensions.
By shifting production to India, Apple not only navigates around the high tariffs imposed on Chinese imports but also strengthens its position in one of the world’s largest smartphone markets. According to Reuters, this initiative is part of Apple’s broader effort to adapt to shifting global trade dynamics.
The Airlift Strategy
In a bid to navigate the tariffs imposed under the Trump administration, Apple chartered cargo flights to transport approximately 1.5 million iPhones from India to the U.S. These efforts, which began in March 2025, are part of a broader strategy to reduce reliance on Chinese manufacturing, where tariffs have reached 125%.
By contrast, imports from India are subject to a significantly lower tariff of 26%, although that rate is currently on pause for 90 days.
“Apple wanted to beat the tariff,” said one of the sources familiar with the planning. This comment underscores the urgency behind Apple‘s logistical efforts, as the company worked quickly to airlift a massive number of units in the face of potential cost increases due to tariffs.
Streamlined Operations at Chennai Airport
Apple has worked closely with Indian authorities to expedite the customs process at Chennai airport. Originally, customs clearance took up to 30 hours, but with a new “green corridor” arrangement, the time has been reduced to just six hours.
This initiative was set up after eight months of planning and received support from the Indian government, including direct involvement from Prime Minister Narendra Modi’s administration.
The “green corridor” arrangement mirrors a similar process Apple has used at certain airports in China. It allows for faster handling of the cargo, ensuring that Apple can swiftly move large quantities of iPhones to U.S. markets, just as new tariffs took effect.
Production Expansion in India
In addition to logistics, Apple has increased production in India to meet its shipping goals. The company ramped up output by 20%, a move supported by extending production hours at the Foxconn factory in Chennai, which now operates on Sundays.
Foxconn, one of Apple’s main suppliers, is critical in helping the company diversify its manufacturing operations away from China. Foxconn’s shipments from India to the U.S. have surged significantly in recent months, with the value of shipments reaching $770 million in January and $643 million in February 2025.
These figures contrast sharply with the lower values in the preceding months, which ranged from $110 million to $331 million.
Foxconn has been offloading a significant portion (85%) of its air shipments in major U.S. cities such as Chicago, Los Angeles, New York, and San Francisco. This trend highlights the growing role of India in Apple’s global supply chain and its impact on the U.S. market.
U.S. Market Implications
The strategy to airlift iPhones and expand production in India comes at a time when U.S. consumers have seen prices for the top-tier iPhone models surge due to the high tariffs on Chinese imports.
According to analysts from Rosenblatt Securities, if the tariffs of 54% had been maintained, the cost of an iPhone 16 Pro Max, priced at $1,599, would have increased to $2,300, a significant price jump for American consumers.
By shifting production to India and taking advantage of lower tariffs, Apple has been able to stabilize prices in the U.S. market. The company’s efforts to diversify its manufacturing beyond China appear to be paying off, with India now supplying a growing portion of the iPhones sold in the U.S.
