A senior executive at Foxconn says they have enough capacity to make all iPhones bound for the U.S. outside of China if necessary. Bloomberg reports: China is a crucial cog in Apple’s business, the origin of most of its iPhones and iPads as well as its largest international market. But President Donald Trump has threatened Beijing with new tariffs on about $300 billion worth of Chinese goods, an act that would escalate tensions dramatically while levying a punitive tax on Apple’s most profitable product. Hon Hai, known also as Foxconn, is the American giant’s most important manufacturing partner. It will fully support Apple if it needs to adjust its production as the U.S.-Chinese trade spat gets grimmer and more unpredictable, board nominee and semiconductor division chief Young Liu told an investor briefing in Taipei on Tuesday. “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.”
This is particularly noteworthy because the U.S. market accounts for one in every four iPhones sold worldwide, “so it represents a huge portion of Foxconn’s manufacturing business inside China,” Strategy Analytics analyst Neil Mawston said.
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Source: Slashdot – Apple’s US iPhones Can All Be Made Outside of China If Needed, Says Foxconn