iPhones on a PlaneThe Indian government has indicated that recently (March to early April) Apple (AAPL) has been air shipping iPhones from their production sites on the sub-continent to the US in order to beat the latest round of tariffs. According to sources in India, six cargo jets have been used, each with a capacity of 100 tons, to move the phones into the US before the April 5 deadline, with the last one earlier this week. This capacity implies, using a package weight of 12.4oz, that the total shipments included ~1.5 million iPhones (not our calculations), that had been part of an emergency assembly program that included a Sunday production addition at Foxconn’s (2354.TT) largest assembly plant, and an accelerated push through customs at the Chennai airport that cut customs throughput time from the usual 30 hours to ~6 hours. For reference Foxconn typically ships between $110m to $331m (value) from India to the US monthly, but saw shipment value increase to $770m in January and $643m in February. It was said that the Indian government put in a request with customs officials to ‘support’ Apple’s expedited clearance, which the company had been planning since last June as tariff rhetoric increased.
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