Apple has airshipped 600 tons of iPhones from India to the US to avoid potential price increases due to new tariffs, testing global tech supply chains.
According to reports from Reuters and The Times of India, Apple expedited the shipment of a significant volume of iPhones before the new US tariffs were set to take effect. The company not only airshipped the devices but also took additional measures to boost production and speed up customs clearance. Apple lobbied officials for faster customs clearance and increased iPhone production in India by 20%. To achieve this production increase, the company added workers and temporarily operated its plant in India on Sundays.
Based on the capacity of the planes and the weight of the iPhones including packaging, Reuters estimates that approximately 1.5 million devices were shipped since March. This large shipment could help Apple avoid raising prices for a while, thus potentially mitigating the impact of the tariffs on consumers.
Nikkei Asia reports that Apple, along with other major tech companies like Dell, Microsoft, and Lenovo, were pushing to ship as many “premium” devices as possible to the US. These devices, such as high-priced computers above $3,000, would face significant price increases under the new tariffs. An executive at a supplier to Apple, Microsoft, and Google revealed that they were instructed to ship as many consumer electronics by air as possible, though they noted that “there’s only so much” that could be shipped in time before the tariff deadline.
The rush to expedite shipments was not limited to Apple. HP initially instructed its suppliers to stick to the original shipping plan but reversed its decision within 24 hours. The company then sought to ship as many devices to the US as possible and planned to increase production in Mexico. The swift change in strategy underscores the urgency and impact of the impending tariffs on tech companies’ supply chain decisions.
The effects of the new tariffs are being felt across the tech industry. Samsung is reportedly reducing smartphone component orders for mid-2025, indicating a potential slowdown in production. Meanwhile, PC makers like Lenovo and Acer are considering increasing their focus on non-US markets to mitigate the impact of the tariffs. The new US tariffs, even though they are ‘paused,’ are testing tech supply chains around the world, prompting companies to reevaluate and adjust their shipping and production strategies.
