Apple suppliers are reportedly considering moving iPhone production out of China if US tariffs on smartphone imports hit 25%, although the current production model will stay in place if the US levies only a 10% tariff on handsets. People familiar with the discussions tell Bloomberg that Apple plans to “sit tight” for the moment.
The iPhone is assembled primarily in China, and various parts suppliers are also based in the region. While giants like Foxconn and Pegatron manufacture various iPhone models, the actual parts needed for assembly come from hundreds of suppliers, many based in China. Moving the entire supply chain out of China would be a daunting task. The report says that an Apple supplier suggested alternative locations for non-iPhone production, but Apple has indicated there’s little need to make such a move for now.
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Bloomberg: Apple could move iPhone production out of China if trade war escalates originally appeared on BGR.com on Wed, 12 Dec 2018 at 11:22:12 EDT. Please see our terms for use of feeds.
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