Apple sells more than 220 million iPhones a year worldwide, with Counterpoint Research estimating a fifth of total iPhone imports to the United States now come from India, and the rest from China.
Trump consistently increased US tariffs on China, to stand at 125 per cent by Wednesday, from 54 per cent earlier.
At the 54 per cent tariff rate, the US$1,599 cost of the top-end iPhone 16 Pro Max in the United States would have surged to US$2,300, calculations based on projections by Rosenblatt Securities show.
SUNDAY SHIFTS
In India, Apple stepped up air shipments to meet its goal of a 20 per cent increase in usual production at iPhone plants, attained by adding workers, and temporarily extending operations at the biggest Foxconn India factory to Sundays, the source added.
Two other direct sources confirmed the Foxconn plant in Chennai now runs on Sundays, which is typically a holiday. The plant turned out 20 million iPhones last year, including the latest iPhone 15 and 16 models.
As Apple diversifies its manufacturing beyond China, it has positioned India for a critical role. Foxconn and Tata, its two main suppliers there, have three factories in all, with two more being built.
Apple spent about eight months to plan and set up the expedited customs clearance in Chennai, and Prime Minister Narendra Modi’s government asked officials to support Apple, one senior Indian official said.
Foxconn shipments from India to the United States surged in value to US$770 million in January and US$643 million in February, compared to the range of US$110 million to US$331 million in the prior four months, commercially available customs data shows.
More than 85 per cent of the January and February air shipments of Foxconn were offloaded in Chicago, Los Angeles, New York and San Francisco.
Foxconn did not respond to Reuters’ queries.
https://www.channelnewsasia.com/business/apple-iphones-trump-tariffs-india-airlift-prices-5057031
