Apple's US iPhones can all be made outside China if needed

Sheri Evans
June 14, 2019

Apple has not given Hon Hai instructions to move production out of China, but it is capable of moving lines elsewhere according to customers' needs, Liu added.

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Foxconn, the world's largest electronics manufacturing contractor and China's biggest private sector employer, announced significant organizational changes in a conference on Tuesday as its founder, Terry Gou, prepares to run in Taiwan's 2020 presidential election. With President Donald Trump threatening Beijing with imposing new tariffs on about $300 billion worth of Chinese goods, the giant of Cupertino will have a complicated situation to deal with. How many Android smartphone brands could do the same?

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During an investor meeting earlier today, Foxconn executive Young Liu (via Bloomberg) relayed that the company shouldn't have any problem meeting Apple's production needs in any type of political environment. Much of the discussion, however, centered on the worsening trade dispute between China and the USA and the impact tariffs might have on Foxconn's business of assembling iPhones and iPads for Apple, mostly in China. After the trial, Foxconn reportedly plans to move into full-scale assembly at a plant in Chennai.

However, with China planning to retaliate to the Trump administration with a tariff increase of its own, it will be hard for Apple to escape the impact of the trade war entirely.

Foxconn is also planning to open a facility in the United States in Wisconsin that will produce liquid crystal displays and would employ 13,000 people. To meet the demand, Foxconn would need at least one or two substantial factories outside China. The company noted that 25 percent of its production capacity is already outside of China, and the manufacturing firm is continuing to make infrastructure investments in India for Apple's business.

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