Apple supplier says iPhone will not be affected by US-China tariff war
Apple’s iPhone could escape Donald Trump’s escalating trade war with China.
Foxconn, one of Apple’s largest suppliers, has moved to reassure consumers and investors that prices and supplies of the Apple’s iPhone will not be affected by the ongoing US-China tariff war.
According to a senior executive at Hon Hai, also known as Foxconn, the company has more than enough capacity to make all iPhones bound for the US outside of China if necessary.
“Twenty-five percent of our production capacity is outside of China and we can help Apple respond to its needs in the US market,” said Young Liu, Hon Hai’s semiconductor division chief, at an investor briefing in Taipei.
At the briefing – which was first reported by Bloomberg – Liu said the company was investing in India, where several older iPhone models are already made at a plant in Bangalore.
“We have enough capacity to meet Apple’s demand,” Liu added.
China is the source of most of Apple’s iPhones and iPads as well as its largest international market.
Apple’s production in China has become a major concern for investors as the Trump administration escalates threats to hit Beijing with new tariffs on about $300bn worth of Chinese goods.
In his comments to investors, Liu said Apple had not given Hon Hai instructions to move production out of China. But he said the company is capable of moving production lines elsewhere according to customers’ needs.
Still, the vulnerability of tech assemblers and chip manufacturers to the trade war has already been established.
Earlier this month, US semiconductor shares plummeted after the Trump administration blacklisted Huawei, the Chinese manufacturing giant accused of breaking sanctions on Iran and being a potential source of espionage for Beijing.