Apple can make iPhone outside of China to avoid Trump tariffs

  • Apple can make iPhone outside of China to avoid Trump tariffs

Apple can make iPhone outside of China to avoid Trump tariffs

Its Taiwanese manufacturing partner Hon Hai Precision Industry (better known as Foxconn) can make enough iPhones to meet the needs of Apple's USA market outside China if needed, according to Bloomberg.

While the Beijing government is yet to announce any measures against Apple, CEO Tim Cook said in an interview with CBS News that he doesn't expect the company to be affected by the trade war between China and the United States. The Taiwanese contract manufacturer now makes most of the smartphones in the Chinese mainland.

Huawei is the most obvious victim of trade tensions between the USA and China that are showing little signs of de-escalation, but directly or indirectly, Apple's lucrative smartphone business could also be negatively impacted by this whole unstable and unpredictable political kerfuffle. The firm moved much of its production to China in previous years and has embraced the company as another of its largest sources of revenue due to its nature as a status symbol. -Chinese trade spat gets grimmer and more unpredictable, board nominee and semiconductor division chief Young Liu told an investor briefing in Taipei on Tuesday.

"Twenty-five percent of our production capacity is outside of China and we can help Apple respond to its needs in the USA market", said Young Liu, Hon Hai's semiconductor division chief, at an investor briefing in Taipei.

Apple has sufficient iPhone production capacity outside China to meet the needs of the U.S. market. But he said the company is capable of moving production lines elsewhere according to customers' needs. Older models are already assembled at a Wistron plant in Bangalore. But that project has since come under criticism for low-paying jobs, sudden dismissals and ever-changing goals.