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Apple could produce outside of China if trade war worsens

It seems that Apple would be safe in case the current trade war between the United States and China intensifies. Those of Cupertino would be prepared to produce outside the Asian country if necessary.

This has been assured by an executive from Foxconn, one of Apple’s main suppliers. According to Young Liu, the conflict between Beijing and Washington DC will affect neither the price nor the supply of iPhones to the United States.

What’s more, the apple company could benefit from the fact that a quarter of Foxconn’s production is located outside of China to manufacture smartphones for the US market in other countries.

For now, Apple would not have asked that this be the case, but this could change if Trump finally imposes the tariff increase with which he threatened the Asian power a few days ago and that would affect Chinese goods valued at about 300,000 million dollars.

As analyst Neil Mawston explains to Bloomberg, it would be relatively easy to move the final phase of assembly of the iPhone out of China. Instead, things get complicated when it comes to the individual production of each of its components.

Apple already has its sights set on India. Some of the older iPhone models are made at Wistron’s Bangalore plant. In addition, Foxconn has a project to create a factory in Wisconsin with the help of incentives from the Trump administration.

China, Apple’s largest international market

Moving the production of iPhones out of China would not be easy. It is true that one of every four phones that Apple produces is sold in the United States, but it cannot be ignored that China is its most important international market.

Despite the fact that sales in the Asian country are falling, Greater China continues to be key in Apple’s income. In the second quarter of 2019, the company generated 10.22 million dollars from this area, behind America and Europe.