Foxconn suggests it could manufacture all United States iPhones outside of China

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Foxconn suggests it could manufacture all United States iPhones outside of China

While it's not sure that whether it's to reduce the import duties in India or whether those phones would end up outside the country, India could be key player for Apple now.

Huawei is the most obvious victim of trade tensions between the USA and China that are showing little signs of de-escalation, but directly or indirectly, Apple's lucrative smartphone business could also be negatively impacted by this whole unstable and unpredictable political kerfuffle.

Apple has so far escaped the brunt of Donald Trump's tariffs on $200bn (£157bn) of Chinese goods but the U.S. president has threatened to slap import duties on a further $300bn if trade talks fail to progress.

On a related note, it appears that Foxconn, Apple's top manufacturing partner, has already been preparing for a worst-case scenario and is seemingly capable of manufacturing new iPhones outside of China.

The US already imposed tariffs on some of the accessories Apple sells, but those hardly have a significant impact on its bottom line. He added, however, Foxconn has the capability and is prepared to meet Apple's relocation demand if necessary.

However, Liu confirmed that Apple is yet to instruct Foxconn to move manufacture outside of China.

The company has also promised to invest billions in a new United States manufacturing hub in Wisconsin, although the base is unlikely to produce iPhones.

Foxconn, one of Apple's largest suppliers, has moved to reassure consumers and investors that prices and supplies of the Apple's iPhone will not be affected by the ongoing US-China tariff war. Analysts have also predicted that Apple leaves itself open as a valuable target. We don't think that Apple will keep a low profile if this starts to affect their business as well.

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