Illustration of iPhone factory (Photo: REUTERS / Bobby Yip)

Trading War Tension with China Increased, Apple Moves Its Office from China Immediately

California, USA - With the intense trading war conditions between US and China, Apple is considering a plan to divert iPhone production outside of China, even though it is known that China became the driving wheel of Apple's business, because most of the iPhone and iPad marketed throughout the world are produced there. However, Trump's threat to impose a new tariff of USD 300 billion on goods from China made several companies to re-think about the business decisions.

One of Hon Hai or Foxconn's officials, better known as Foxconn, Young Li said that, he is ready if Apple decided to divert the production center of the iPhone and iPad outside of China and will fully help to adjust the needs of Apple devices on the market as 25 percent of their production capacity is outside China.

A business analyst Neil Mawston, estimates Foxconn will take one to two years to meet demand for Apple products. As a result, sending Apple products will experience delays in some countries, slowing the Apple sales.

Liu stated that so far, they have not received instructions from Apple to move production lines from China. However, this step is definitely not a profitable thing for Apple as China is one of the determinants of Apple's business.

The Foxconn official also mentioned that currently his team is investing in India to meet demand for iPhone and iPad production as Foxconn has used a factory in India to produce the iPhone XR which is planned to begin the mass production phase at a factory in Chennai, and the old iPhone series will be produced in in Wistron, Bangalore factory.

Source: https://www.cnnindonesia.com/teknologi/20190612143859-185-402694/apple-berencana-pindahkan-produksi-iphone-di-luar-china