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

By
Megan Cerullo
Reporter, MoneyWatch
Megan Cerullo is a New York-based reporter for CBS MoneyWatch covering small business, workplace, health care, consumer spending and personal finance topics. She regularly appears on CBS News 24/7 to discuss her reporting.
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Megan Cerullo

/ CBS News

Apple wants to get its iPhones into the hands of U.S. customers before tariffs could lead 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., reported, citing sources with knowledge of the matter. 

The technology giant has taken a number of steps to mitigate the impact of President Trump's steep tariffs on China. That includes ramping up iPhone production in India, which is subject to far lower levies than China, the Wall Street Journal reported earlier this week. Apple continues to make most iPhones in China. 

Apple has added workers in its main India factory, extending shifts to reach its goal of ramping up production by 20%, Reuters reported. 

Mr. Trump on April 2 announced a 27% tariff on India, which Mr. Trump on Wednesday paused for 90 days along with import taxes on dozens of other countries as the U.S. seeks to negotiate more favorable trade deals. By contrast, a 125% "reciprocal tariff" on China remains in effect. 

What you should know about the U.S. and China tariffs 06:32

Apple chartered cargo flights to transport the smartphones to the U.S. 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 sharply under Mr. Trump's tariffs. iPhone sales account for about half of the company's revenue.

Apple store workers report strong consumer demand for the company's devices before potential price hikes take effect. Recent data from UBS Investment Research shows that a 125% tariff on Chinese imports could lift the retail cost of an iPhone 16 Pro Max 256 GB, which is assembled in China, as much as 67%, lifting the price $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. 

Edited by Anne Marie D. Lee

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