Apple transmits tons of iPhone from India to America .. What is the story?

Media reports revealed that the American company “Apple” secretly rented six charging aircraft to transport about 600 tons of iPhone from India to the United States at the end of March, to avoid the new customs duties imposed by the administration of US President Donald Trump, according to the European “Euronews” network.

An emergency plan to overcome customs duties

Informed sources reported that the giant technology company transported about 1.5 million iPhone phones on six aircraft, each of which is 100 tons. This process aims, according to reports, to exceed the customs tariffs imposed on imports from India.

Apple also negotiated a “green corridor” to accelerate customs clearance procedures at Chennai Indian airport, which reduced the time of procedures from 30 hours to 6 hours only. The company is known to use similar practices in China, as a large percentage of its devices is produced.
Also read: Analysts: China will not easily give in the trade war with America

Promoting the American stock

Apple seeks to enhance its stock in the United States in anticipation of any disturbances in the supply chains as a result of commercial tensions. According to the Wall Street Journal, the company plans to expand its exports from India to the American market in an attempt to reduce the effects of high Chinese customs duties.

During the past year, Apple exported the iPhone with a value of more than $ 17 billion from India, at a time when it is estimated that Indian production may cover half of the American market needs of the iPhone in the near future.
Also read: “Microsoft” hijacks the title of the largest company in the world from “Apple”

Tension with China presses the supply chain

On the other hand, China – the main manufacturing center of Apple – is facing increasing pressure as the trade war with the United States is escalating. Beijing has announced the raising of customs tariffs on American imports from 84% to 125%, in response to Trump’s 145% definitions on Chinese products.

As for India, it was subject to 26% customs duties on its exports to the United States, before starting to work with what is known as “reciprocal customs duties” that lasts 90 days, which temporarily reduced the fees to 10%.

Fears of the high iPhone prices

Due to Apple’s great dependence on China as a production center, there are extensive concerns about the high prices of iPhone and other technology products within the American market. Despite these concerns, its severity temporarily eased after Trump gave an exceptional exemption for technology companies from some fees.

It should be noted that iPhone phones have been manufactured in China since the launch of the first version 18 years ago, but continuing these practices has become difficult in light of the mutual drawings between Beijing and Washington, which exceeded 125%.

Experts believe that the transfer of the supply chain outside China may take years and cost the company billions of dollars.

The idea of ​​local manufacturing … is not currently applicable

Dan Evz, an analyst at Widbush Securities, said that the idea of ​​manufacturing iPhone phones inside the United States is “currently not currently”, noting that the price of the phone may rise from 1000 to more than 3000 dollars if the device is manufactured inside America. He stressed that the transfer of production to the United States will not likely take place before 2028.

Apple shares fell after Trump’s decisions

Since Trump announced the increase in customs duties on April 2, Apple shares decreased by 15%Which led to a decrease in the market value of the company 500 billion dollars (The equivalent of 442 billion euros), amid fears of the continued commercial escalation and its impact on technology companies.