Published: Thu, June 13, 2019
Economy | By

Apple can reportedly survive a China ban as Foxconn shifts to India

Apple can reportedly survive a China ban as Foxconn shifts to India

With ongoing US Trade War with China, the Cupertino tech giant seems to have a contingency plan if the things go unfavorable as a result of the trade war. The country not only manufactures iPhone, iPad and Mac computers (among others) but it is also the source of numerous components required to make those devices.

According to a senior executive at Foxconn, the company that is assembling the iPhones can do so outside of China for the devices destined for the USA market, if needed, SCMP reports.

US President Donald Trump recently threatened to move forward with a plan to impose tariffs on about US$300 billion worth of additional goods from China after having increased the tariff rate on more than US$200 billion worth of Chinese goods from 10% to 25% last month.

Analysts have predicted that, if the company continues to manufacture the majority of iPhones in China, this could hurt Apple in a big way.

Foxconn, known locally as Hon Hai Precision Industry Co., said the raise will enable its employees to share in the company's earnings and help the company recruit talent and encourage existing employees to stay together for future growth.


Foxconn board nominee and semiconductor division chief Young Liu, made the comments at an investor briefing in Taipei on Tuesday, reports Bloomberg. But he said the company is capable of moving production lines elsewhere according to customers' needs.

He added the project, which includes manufacturing of displays and servers, was poised to go into production by the end of next year.

Foxconn has also agreed to build a 13,000-worker facility in Wisconsin in exchange for more than $4.5 billion in government incentives.

Most of Foxconn's factories are located in China, even though the company is headquartered in Taiwan, but in recent years, the tech giant has been making great efforts to expand and diversify its worldwide operations, from Brazil to Turkey, India, and the US.

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