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Apple iPhones for the USA can be made Outside China, Says Foxconn

12 June 2019

The firm moved much of its production to China in previous years and has embraced the company as another of its largest sources of revenue due to its nature as a status symbol. Its semiconductor division chief Young Liu said that 25% of the production capacity is positioned outside of China and the company is ready to help Apple since it has enough capacity to meet the demand of the U.S. market.

In response to that a senior executive at the Taiwanese manufacturer Foxconn has said that his company can move the production of iDevices for the United States market outside of China, if needed. Foxconn assures that it can fully support Apple if the ongoing trade war goes unpredictable.

Tim Cook, meanwhile, has publicly said that he's not anxious about an escalating trade war with China, telling CBS News last week: "The Chinese have not targeted Apple at all, and I don't anticipate that happening, to be honest". Ltd, which trades as Foxconn, is Apple's major manufacturing partner for the iPhone and iPad. "We have enough capacity to meet Apple's demand". The company will respond swiftly and rely on localized manufacturing in response to the trade war, just as it foresaw the need to build a base in the USA state of Wisconsin two years ago, he said.

Apple shares were up more than 1% to $194.99 in NY on Tuesday.

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 global operations, from Brazil to Turkey, India, and the US.

In other words, new tariffs simply means Foxconn would shift all iPhone production out of China and it believes the capacity is already there.

And it's not just about the simple assembly of finished goods. Apple's stock has since rebounded, but concerns about China remain. But there's Winston, which assembles Apple devices in India, however, they are mostly older models like the iPhone 6S.

Foxconn has also agreed to build a 13,000-worker facility in Wisconsin in exchange for more than $4.5 billion in government incentives.

Apple iPhones for the USA can be made Outside China, Says Foxconn