Fears about an impending trade war with China have shaken Apple, which produces the overwhelming majority of its devices in the country.
However, according to Apple manufacturer Foxconn, there’s some good news. It claims it has the capacity to produce all iPhones bound for the U.S. outside of China if it needs to.
This would allow Apple to escape the negative impacts of proposed U.S. tariffs on $300 billion worth of Chinese-made goods.
Analysts have predicted that, if the company continues to manufacture the majority of iPhones in China, this could hurt Apple in a big way. It could also hurt consumers, who may have to field increased iPhone prices.
“25% of our production capacity is outside of China and we can help Apple respond to its needs in the U.S. market,” Foxconn board nominee and semiconductor division chief Young Liu told reporters. “We have enough capacity to meet Apple’s demand.”
Moving out of China
Foxconn has already started manufacturing iPhones in India. In addition, it’s working to build a 13,000-worker factory in Wisconsin in the U.S., although that project has run into problems.
It’s worth noting that Foxconn isn’t the only assembler of iPhones. Other companies play a crucial role in the manufacturing process, too, and presumably not all of these have the ability to move out of the country. (Although others, such as Pegatron, have also talked about moving production of certain products out of China.)
Still, at a time when this issue is causing plenty of uncertainty for Apple investors, Foxconn’s claims — provided they are accurate — are certainly promising.
Source: Bloomberg
