After Huawei, many see Apple as the next big victim of the China vs. the United States trade war.
But even if things get ugly for Apple in China, the Cupertino-based tech giant is fully prepared to make the iPhone elsewhere, according to an official of Hon Hai Precision Industry Co.
Hon Hai, which is the parent company of Foxconn, Apple’s number one partner that helps make the iPhone, can move production out of China if needed, board nominee and semiconductor division chief Young Liu was quoted as saying at an investor briefing in Taipei by Bloomberg.
However, Apple hasn’t requested such a transfer of production capacity from China to other markets, he said, albeit Hon Hai is ready to “respond swiftly” if needed.
“Twenty-five percent of our production capacity is outside of China and we can help Apple respond to its needs in the U.S. market,” Liu noted. “We have enough capacity to meet Apple’s demand.”
The Hon Hai official also revealed that the company is currently investing in its Indian production facilities, suggesting that if needed, more of the iPhone output could come from this country if things get more complicated in China for Apple.
No sanctions against Apple just yet
While the Beijing government is yet to announce any measures against Apple, CEO Tim Cook said in an interview with CBS News that he doesn’t expect the company to be affected by the trade war between China and the United States.
“Well, it currently the Chinese have not targeted Apple at all. And I don't anticipate that happening, to be honest,” he said.
Furthermore, Ren Zhengfei, CEO of troubled Huawei, which has already been banned by the US from working with American companies, said China shouldn’t seek revenge by imposing sanctions against Apple.
“That will not happen, first of all. And second of all, if that happens, I’ll be the first to protest. Apple is my teacher, it’s in the lead. As a student, why go against my teacher? Never,” he said.