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Apple ( AAPL ) made discreet plan to boost India production

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Sunday shifts at Foxconn boosted iPhone shipments, sources

say

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Indian government helped Apple ( AAPL ) clear customs faster

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Apple ( AAPL ) counts India as a new emerging manufacturing hub

By Aditya Kalra, Abhijith Ganapavaram and Munsif Vengattil

NEW DELHI, April 10 (Reuters) - Tech giant Apple ( AAPL )

chartered cargo flights to ferry 600 tons of iPhones, or as many

as 1.5 million, to the United States from India, after it

stepped up production there in an effort to beat President

Donald Trump's tariffs, sources told Reuters.

The details of the push provide an insight into the U.S.

smartphone company's private strategy to navigate around the

Trump tariffs and build up inventory of its popular iPhones in

the United States, one of its biggest markets.

Analysts have warned that U.S. prices of iPhones could

surge, given Apple's ( AAPL ) high reliance on imports from China, the

main manufacturing hub of the devices, which is subject to

Trump's highest tariff rate of 125%.

That figure is far in excess of the tariff of 26% on imports

from India, but which is now on hold after Trump called a 90-day

pause this week that excludes China.

Apple ( AAPL ) "wanted to beat the tariff," said one of the sources

familiar with the planning.

The company lobbied Indian airport authorities to cut to six

hours the time needed to clear customs at the Chennai airport in

the southern state of Tamil Nadu, down from 30 hours, the source

added.

The so-called "green corridor" arrangement at the airport in

the Indian manufacturing hub emulated a model Apple ( AAPL ) uses at some

airports in China, the source said.

About six cargo jets with a capacity of 100 tons each have

flown out since March, one of them this week just as new tariffs

kicked in, the source and an Indian government official said.

The packaged weight of an iPhone 14 and its charging cable

come to about 350 grams (12.35 oz), Reuters measurements show,

implying the total cargo of 600 tons comprised about 1.5 million

iPhones, after accounting for some packaging weight.

Apple ( AAPL ) and India's aviation ministry did not respond to a

request for comment. All the sources sought anonymity as the

strategy and discussions were private.

Apple ( AAPL ) 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 U.S. tariffs on China, to stand

at 125% by Wednesday, from 54% earlier.

At the 54% tariff rate, the $1,599 cost of the top-end

iPhone 16 Pro Max in the United States would have surged to

$2,300, calculations based on projections by Rosenblatt

Securities show.

SUNDAY SHIFTS

In India, Apple ( AAPL ) stepped up air shipments to meet its goal of

a 20% 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 ( AAPL ) 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 ( AAPL ) 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 ( AAPL ), one

senior Indian official said.

Foxconn shipments from India to the United States surged in

value to $770 million in January and $643 million in February,

compared to the range of $110 million to $331 million in the

prior four months, commercially available customs data shows.

More than 85% 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.