Apple can reportedly make enough iPhones outside China

Apple Has a Backup Plan If the U.S.-China Trade War Triggers iPhone TariffsMore

Apple Has a Backup Plan If the U.S.-China Trade War Triggers iPhone TariffsMore

The trade war "will have some impact, but it will be limited", Liu said.

On a related note, it appears that Foxconn, Apple's top manufacturing partner, has already been preparing for a worst-case scenario and is seemingly capable of manufacturing new iPhones outside of China.

Foxconn has a big incentive to help Apple since the company is said to be responsible for as much as half of Foxconn's revenue. President Donald Trump, however, has threatened new tariffs on around United States dollars 300 Billion worth of Chinese goods, including the iPhone.

The report cites a senior executive from Foxconn suggesting the company has enough capacity to make all the USA iPhones to be made out of China.

Previous reports have suggested the iPhone manufacturer is scaling up its production in India and is considering building a plant in Vietnam. How many Android smartphone brands could do the same? But as the world's largest electronics manufacturing service provider, nearly all global brand vendors are among Foxconn's customer lists and therefore the order changes have not affected Foxconn much, according to Liu. To meet the demand, Foxconn would need at least one or two substantial factories outside China. Even if Apple can support relying on Foxconn beginning air of China, some of its particular individual ingredient suppliers are peaceful located within the stammer - there will be peril if any of these companions are sever off.

The news should be particularly encouraging given the alternative scenario which would likely see Apple having to bear the brunt of a more costly iPhone. If that were to happen, however, the firm believes Apple would likely absorb the cost rather than asking consumers to pay more for its flagship iPhone.

China is a key market for Apple - it's the firm's third largest market following the Americas and Europe. In his free time, he loves to introspect and plan ahead.

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