Apple can reportedly make enough iPhones outside China

Kelley Robertson
June 14, 2019

An entirely India-made iPhone lineup?

Foxconn, known locally as Hon Hai Precision Industry Co., said the raise will enable its employees to share in the company's earnings and help the company recruit talent and encourage existing employees to stay together for future growth. Its list of clients is long, eclectic, and incredibly impressive, including Xiaomi, Nokia, Amazon, Sony, Microsoft, Motorola, and Google (to only name a few). But he said the company is capable of moving production lines elsewhere according to customers' needs. Planning for such a shift has gathered steam since the USA last month increased import tariffs on United States dollars 200 billion of Chinese goods to 25 percent from 10 percent, and proposed to tax another $300 billion of China exports, including smartphones, according to industry executives.

The trade war issue is still ongoing between worlds two largest nations.

The trade war between the United States and China could bring more pain to Apple with the U.S. president threatening Beijing with imposing new tariffs on about $300 billion worth of Chinese goods, including Foxconn-built iPhones and iPads. The company noted that 25 percent of its production capacity is already outside of China, and the manufacturing firm is continuing to make infrastructure investments in India for Apple's business.

Beijing is a top producer of Apple's iPhone and iPad.

If Trump's threat becomes a reality, Apple will be greatly impacted, Liberty Times said.

China is a key market for Apple - it's the firm's third largest market following the Americas and Europe. These additional costs would likely be passed on to consumers through raised smartphone prices, in turn hurting the company's ability to sell new phones. Poor sales in the region previously led the company to slash its revenue expectations ahead of its first quarter earnings report marking the first time it had done so in almost 17 years.

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