Apple Boosts iPhone Manufacturing Operations in India

In a strategic move to bypass the impact of rising U.S. tariffs on Chinese imports, Apple has chartered cargo flights to transport iPhones from India to the United States. This shift marks a significant realignment in Apple’s global supply chain strategy, with India emerging as a critical manufacturing hub. Approximately 600 tons of iPhones, equating to nearly 1.5 million units, have been flown out of India to meet U.S. demand and maintain inventory flow.

A Tactical Response to Escalating Tariffs

The decision to expedite shipments from India is Apple’s response to the steep tariffs imposed by the U.S. government on Chinese goods, which have reached up to 125%. In contrast, Indian-made iPhones are subject to just 26% tariffs, making them more economically viable for export to the U.S. This cost advantage has spurred Apple to scale its Indian operations and streamline logistics to support the transition.

Chennai Airport Becomes Key Export Hub

To ensure swift transportation, Apple has implemented a special "green corridor" at Chennai airport. This has reduced customs clearance time drastically from 30 hours to just six. Modeled after a similar system used in China, this corridor enables faster processing of outbound shipments, helping Apple meet urgent inventory needs in the U.S. market. Since March, Apple has sent six dedicated cargo jets—each with a 100-ton capacity—from Chennai to American cities.

iPhone Production Scales Up in India

To meet the surge in demand, Apple has ramped up production at its Indian facilities by 20%. This boost has been supported by expanding workforce strength and extending operational hours, including Sunday shifts at Foxconn’s Chennai plant. The factory, which plays a pivotal role in manufacturing iPhone 15 and iPhone 16 models, produced 20 million units last year alone.

Key Partnerships with Foxconn and Tata

Apple’s manufacturing expansion in India is heavily reliant on its partnerships with major suppliers Foxconn and Tata. At present, Apple operates three manufacturing units in India, with two additional factories under construction. This expansion is part of Apple’s long-term strategy to diversify production away from China and reduce geopolitical risks. The growing role of Indian suppliers underscores India’s importance in Apple’s supply chain transformation.

Surge in Export Shipments to the U.S.

Export data shows a significant uptick in shipments from Foxconn’s Indian factories to the U.S. In January 2025, exports reached $770 million, followed by $643 million in February. These figures are a major leap compared to earlier months, when exports ranged from $110 million to $331 million. Major shipment destinations include Chicago, Los Angeles, New York, and San Francisco, reflecting strong consumer demand in those regions.

Strategic Planning and Government Support

Apple’s ability to scale up shipments and streamline customs processes is the result of months of meticulous planning and close cooperation with the Indian government. The company has worked diligently to ensure smooth logistics, reflecting its strong commitment to growing its footprint in India. As Apple continues to face supply chain pressures from China, India’s role in manufacturing and logistics is set to expand further.

Conclusion

Apple’s decision to airlift iPhones from India to the U.S. is a clear sign of its evolving supply chain strategy. By increasing production in India and leveraging quicker customs processes, the company is mitigating the risks of high U.S. tariffs on Chinese imports. This move not only strengthens Apple’s supply chain resilience but also highlights India’s rising stature as a key global manufacturing hub for high-end electronics.