How about exhaling for a double entendre ?
     "You know why right now everybody is investing in Ireland?
     "The Capital is always Dublin!"
     But back to where the rubber meets the road, or rolls down the runway and takes off, we view Apple's iPhone shipments from India surpassing $10.7 billion last year, with over 12 million units shipped in 2024.
     To meet the tariff deadline before April 5, Apple arranged five freighter flights within three days from India to the U.S.
     As reported by a leading Indian daily, these flights transported iPhones and other Apple products, aiming to delay price adjustments until the iPhone 17 launch later this year.
     Preceding these crucial flights, both Apple and Samsung Electronics coordinated flights to import mobile phones into India. Samsung conducted three flights from Hanoi to Delhi, while Apple organized four flights from Mumbai to Delhi, ensuring the full utilization of the subsequent five freighter flights to the U.S.
     Apple's strategic shift towards making India a production hub is evident, with 5% of global iPhone production now allocated to the country. Collaborating with the Tata Group and Foxconn India Private Ltd. for iPhone manufacturing in India signifies a positive trajectory for the country's air cargo sector.
     In FY24, India witnessed a significant uptick in smartphone exports, notably Apple's iPhone exports reaching a record ?1.5 trillion (US$17.47 billion), signifying a remarkable 76% year-on-year growth. Despite these gains, the imposition of new tariffs poses a threat to India's production for Apple, potentially impacting export volumes and profit margins.
     While India faces challenges in exports, particularly concerning the 26% tariff affecting electronics exports, industry experts like Ashok Chandak (left) from the Indian Electronics and Semiconductor Association express concerns over potential disruptions in trade flows and profit margins.
     On the other hand, Samsung's establishment of the world's largest mobile factory in Noida underscores its commitment to meeting the burgeoning demand for innovative products and services in India. The Korean electronics giant, with significant operations in Vietnam, faces tariff-induced challenges, necessitating temporary measures like airlifting mobile phones from India.
     As the industry awaits further developments, the ongoing India-U.S. trade discussions hold the promise of addressing tariff-related issues.
     Noted economist Swaminathan Aiyer (right) pointed out that the tariffs would force manufacturers to rethink their entire production and export strategies:
“There will be all kinds of factories and places which can no longer export," he was quoted saying.
Tirthankar Ghosh/GDA