The phones were manufactured in India and rushed out of the country to beat expected tariffs
Apple $AAPL (AAPL) has chartered cargo planes to transport 600 tons of iPhones (equivalent to 1.5 million units) to the United States from India, according to Reuters. Anticipating tariffs, Apple had shifted some production to India and in an attempt to beat tariffs planned for India, Apple hoarded the phones.
For perspective, according to the Pennsylvania Department of Transportation, a fully loaded school bus weighs about 20 tons on average, so Apple ferried the equivalent of 30 school buses worth of iPhones out of India.
Wedbush Securities tech analyst Dan Ives wrote in a research note this week that the added levies could create a “category 5 price storm” for electronics. Levying tariffs at such rates is the equivalent of “flipping a boat upside down in the ocean with no life rafts,” he added.
The iPhone 16 Pro Max 256 GB, which is among the devices that are assembled in China, retails for $1,199. Under the new tariffs on Chinese imports, the price of the device could rise by $675, or 56%, lifting the price tag to $1,874, an April 9 analysts from UBS Investment Research (UBS) shows.
The price increase estimates were before Trump instituted a 90-day pause on tariffs which, notably, does not apply to China.
The iPhone flights began in March and have continued into this week, the report says.
Apple sells more than 220 million iPhones a year worldwide, with Counterpoint Research concluding that fifth of total iPhone imports to the United States now come from India, with the rest being produced in China. The report did not specify what type of iPhones are being produced in India, or if the flights consisted of a mix of models.
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