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Apple can reportedly survive a China ban as Foxconn shifts to India

Apple can reportedly survive a China ban as Foxconn shifts to India Apple can reportedly make enough iPhones outside China
Ginger Lawrence | 12 June, 2019, 05:13

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

China is a crucial cog in Apple's business, the origin of most of its iPhones and iPads as well as its largest global market. Washington is threatening to hit Beijing with new tariffs on about $300 billion worth of Chinese goods including phones and laptops, directly affecting the company's business with a swathe of the world's major electronics brands. "We have enough capacity to meet Apple's demand".

The company's board nominees and chief of semiconductor division, Young Liu has further stated that 25% of the production capacity is outside China presently and future investments are also being made in India right now, henceforth, assuring that the company can meet Apple's needs when required.

Apple is reportedly prepared if the US-China trade war forces it to move production outside China.

Foxconn, formally Hon Hai Precision Industry Co Ltd, also unveiled a leadership overhaul that will see more executives involved in its daily operations, as Chairman Terry Gou seeks to run in Taiwan's 2020 presidential election.

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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.

While the Beijing government is yet to announce any measures against Apple, CEO Tim Cook 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 United States. In its exchange filings, the company said it will localize some of its manufacturing across production bases covering 16 countries from Japan and Mexico to the US and India.

Foxconn is already under the spotlight for not yet meeting job-creation targets in Wisconsin, an investment cited by U.S. President Donald Trump as proof he was reviving American manufacturing.

"It would be relatively easy to shift final assembly of the iPhone outside China, but moving to full production of the components and the whole handset would be much tougher", Mawston said. Older models are already assembled at a Wistron plant in Bangalore.

It will also start making networking and server products for the USA market by the end of next year, on top of LCDs starting next year, Liu said.