Apple Flies Under Trump's Tariffs by Chartering Planes

Apple has arranged for charter flights to ship around 600 tons of iPhones, which equates to about 1.5 million devices, from India to the United States. The company is taking this step to circumvent the tariffs imposed by former U.S. President Donald Trump, according to a report by Reuters on Thursday.

Analysts warn that The cost of iPhones in the U.S. might rise significantly. because of Apple's significant dependence on products imported from China, where most of these gadgets are manufactured.

The highest tariff rates set by the Trump administration can go up to 125%. This rate far surpasses the 26% duty on goods coming from India, a levy that Trump put on hold for 90 days starting Wednesday.

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As per a source referenced by Reuters, Apple aimed to avoid tariffs by shipping 600 tons of smartphones. The firm campaigned for officials at the Chennai (Madras) airport in Tamil Nadu, located in South India, aiming to decrease customs processing duration from 30 hours down to just six hours.

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According to the report from the source and confirmed by an Indian government official, Six cargo aircraft loaded with Apple merchandise, each having a capacity of 100 tons, have departed from India since March. including one this week.

Apple sells more than 220 million iPhones each year across the globe. According to Counterpoint Research, an analytics company, one-fifth of all iPhones shipped to the United States originate from India, whereas the remaining proportion comes from China.

The value of deliveries has risen significantly.

Reuters has stated that the Foxconn plant manufacturing these phones operates even on Sundays in 2024. The firm manufactured around 20 million iPhones this year, encompassing the newest variants, namely Models 15 and 16.

Based on the customs information at hand, The value of Foxconn's exports from India to the U.S. saw a significant rise, reaching $770 million in January and dropping slightly to $643 million in February. , as opposed to the preceding four months where the value fluctuated between $110 million and $331 million.

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The Trump administration states that implementing tariffs aims to motivate U.S. businesses to invest within the country. Nevertheless, shifting the supply chains required for manufacturing will result in a considerable rise in costs.

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Dan Ives, a senior equity research analyst at Wedbush Securities, said in an announcement conveyed to Newsweek U.S. that The price for a new iPhone manufactured in the U.S. would likely be around $3,500. By year-end 2024, the typical cost of an iPhone stood at $1,018.

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