Apple airlifts more than 1 million iPhones out of India to avoid Trump tariffs, Reuters reports

Apple wants to make sure it gets its iPhones into the hands of U.S.-based customers before tariffs could force the tech giant to hike prices. 

The iPhone maker shipped about 1.5 million iPhones, a cargo weighing roughly 600 tons, by air from India to the U.S., Reuters reported, citing sources with knowledge of the matter. 

The tech giant has taken a number of steps to avoid President Trump’s steep tariffs on China, including ramping up iPhone production in India, which is subject to the far lower levies than China, where most iPhones sold in the U.S. are made, the Wall Street Journal reported earlier this week. 

Apple has added workers at its main India factory, extending shifts through Sunday in order to reach its goal of ramping up production by 20%, Reuters reported, citing multiple sources familiar with the matter. 

Mr. Trump on April 2 announced a 27% tariff on India, which is currently paused for 90 days. By contrast, a 125% “reciprocal tariff” on China remains in effect. 

Apple chartered cargo flights to move the smartphones because it “wanted to beat the tariff,” a source familiar with the matter told Reuters. 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, Reuters reported, citing two sources, including an senior Indian government official. 

Apple did not immediately respond to CBS MoneyWatch’s request for comment on the matter. 

Prices expected to rise

Apple product prices are expected to rise dramatically under Mr. Trump’s tariffs. iPhone sales account for about half of the company’s revenue.

Apple store workers have said shoppers are racing to get their hands on the devices before potential price hikes take effect, though they did not provide any information on whether or not prices will change, and how much the tech tools could cost with new tariffs in place. 

Recent data from UBS Investment Research shows that with a 125% tariff on China in effect, an iPhone 16 Pro Max 256 GB, which is assembled in China, could face a 67% price hike, rising $800 from $1,199 to $1,999. 

Research from Wedbush Securities tech analyst Dan Ives underscores the importance of global trade to ensure affordable consumer electronics prices in the U.S. If the iPhone were made in the U.S., a $1,000 model would cost $3,500, he said in a research note Tuesday.