Apple is reportedly prepared if the US-China trade war forces it to move production outside China.
Foxconn, which builds the large majority of Apple’s iPhones and iPads in China, told Bloomberg it has the capacity to build enough iPhones outside of China to satisfy demand.
Most iPhones are currently produced in China, but Foxconn semiconductor division chief Young Liu apparently told investors Tuesday that twenty-five percent of its production capacity is outside the mainland — enough to satisfy the U.S. market.
“Twenty-five percent of our production capacity is outside of China and we can help Apple respond to its needs in the U.S. market,” said Liu, adding that investments are now being made in India for Apple. “We have enough capacity to meet Apple’s demand.”
The Foxconn official also revealed that the company is currently investing in its Indian production facilities, suggesting that if needed, more of the iPhone output could come from the country if things get more complicated in China for Apple.
While Beijing has yet to announce any retaliatory measures against Apple, CEO Tim Cook recently said in an interview with CBS News that he doesn’t expect the company to be affected by the trade war between China and the U.S.
“The Chinese have not targeted Apple at all, and, I don’t anticipate that happening, to be honest,” he said. Such tariffs could increase the cost of the iPhone to Chinese consumers, an increasingly important market for Apple.
Additionally, Huawei founder and CEO Ren Zhengfei told Bloomberg he would oppose any effort by China to bar Apple from doing business in the country, even as his company faces a similar ban in the United States.