In March 2023, Apple started a mammoth logistical operation to airlift iPhones worth an incredible $2 billion from India. This action followed the U.S. administration’s threat to put a 26% duty on all shipments from that country. This strategic move aimed to make sure that it had sufficient inventory by hitting one of its biggest markets. Simultaneously, the firm had to focus on managing the impact of increasing tariffs.
The 26% tariffs on Indian imports were much, much lower. Chinese imports, in comparison, were hit by duties of greater than 100% in the same time frame. This gap created a huge opportunity for Apple to ramp up its production and export capabilities in India. To bring this to life, Apple chartered ten cargo flights. That’s at least six jets worth of iPhones that Apple had to fly over to the United States.
Foxconn, Apple’s chief manufacturing partner, celebrated a train-wreck wow-ever March. The company had record-setting smartphone exports of $1.31 billion, its highest monthly figure on record. This number was a huge jump, equal to the total of January and February’s shipments combined. Those smartphones exported by Foxconn weren’t limited to Apple; they included other popular smartphones like the iPhone 13, 14, 16 and 16e among others.
Additionally, Foxconn’s total shipments from India to the United States reached $5.3 billion for the year, underscoring a robust expansion in Apple’s operations within the country. This growth is in keeping with Apple’s larger efforts to diversify its supply chain and lessen the tech giant’s dependence on Chinese manufacturing.
To give you an idea, in March alone, Tata Electronics played a major role in this spike in exports, with shipments clocking in at $612 million. This figure reflected a stunning 63% month-over-month increase. It featured another big launch—latest iPhone models, namely the iPhone 15 and 16 series.
The airlift operation wasn’t just a logistical undertaking, it was a tactical market condition response. That’s the case that Apple made when they started using cargo flights to help “beat the tariffs.” This unique strategy allowed Walmart to stay competitive in the U.S. market both through cost and product availability even during outside pressures.