Should tensions between the U.S. and China escalate to an all-out trade, Foxconn, Apple’s main assembly partner, says it has enough manufacturing capacity outside of Mainland China to protect the tech giant against punitive tariffs.
“Twenty-five percent of our production is outside of China and we can help Apple respond to its needs in the U.S. market,” said Foxconn semiconductor division chief Young Liu during an investor briefing on Tuesday, according to Bloomberg.
With the exception of a couple of older iPhone models Apple sells in developing markets, Foxconn builds all of the company’s flagship iPhones at its Longhua Science and Technology Park in Shenzhen, China.
Should U.S. President Donald Trump follow through on his threat to impose additional tariffs on Chinese goods, the cost of Apple products, including the iPhone XS and XS Max, will increase in the U.S. and across the board
Bloomberg reports Foxconn has just enough capacity outside of China to meet U.S. demand for the iPhone and iPad. While Apple has yet to ask Foxconn to follow through on its promise, the move could lead to India becoming a major manufacturing hub of Apple products.
In fact, even before this latest episode in Trump’s trade war, Apple was, according to a Reuters report, was already exploring the option of moving the iPhone assembly to India.