China trade war may hand India a bigger bite of Apple

12 Juin, 2019, 05:11 | Auteur: Auguste Feret
  • Apple has sufficient iPhone production capacity outside China to meet the needs of the US market.                  Angela Lang  CNET

The Hon Hai official also revealed that the company is now investing in its Indian production facilities, suggesting that if needed, more of the iPhone output could come from this country if things get more complicated in China for Apple.

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

Foxconn straddles the world's two largest economies because it manufactures most of its devices in China, many of which then find their way to American consumers.

Apple can move iPhone manufacturing out of China if the Trump administration's trade war with Beijing escalates, its biggest manufacturer has said.

"We have enough capacity to meet Apple's demand", Liu added. Foxconn assures that it can fully support Apple if the ongoing trade war goes unpredictable.

According to a senior executive at Hon Hai, also known as Foxconn, the company has more than enough capacity to make all iPhones bound for the USA outside of China if necessary.

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Most of Foxconn's factories are located in China, even though the company is headquartered in Taiwan, but in recent years, the tech giant has been making great efforts to expand and diversify its worldwide operations, from Brazil to Turkey, India, and the US.

However, Apple hasn't requested such a transfer of production capacity from China to other markets, he said, albeit Hon Hai is ready to "respond swiftly" if needed. But he said the company is capable of moving production lines elsewhere according to customers' needs.

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.

Apple is reportedly prepared if the US-China trade war forces it to move production outside China. But without that, some of its Chinese factories may be idled.

Gou's company wields unusual influence for an Asian company in the U.S. When President Donald Trump called for more investment in local manufacturing, Gou was among the first to heed the call, agreeing to build a 13,000-worker facility in Wisconsin in exchange for more than $4.5 billion in government incentives. But that project has since come under criticism for low-paying jobs, sudden dismissals and ever-changing goals.

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