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Foxconn: iPhones can be made outside of China if trade war worsens

iPhone XS
iPhone XS Max. Photo: Spencer Platt/Getty Images

iPhone assembler Foxconn says it has the capacity to manufacture Apple products outside of China if U.S.-China trade relations escalate, Bloomberg reports.

Why it matters, per Axios' Ina Fried: Nearly all iPhones are currently made in China, presenting a huge risk for Apple. Having a solid plan B is a good thing given the unpredictability of U.S.-China trade relations.

Driving the news: President Trump has threatened China with new tariffs on $300 billion worth of Chinese goods — which would inevitably affect Apple — if President Xi Jinping is a no-show at the upcoming G20 summit.

Backdrop: Apple is already feeling the effects of China's slumping economy. The company had to mark down its Q4 revenue expectations in January, attributing it in part to the ongoing trade war.

  • Foxconn, also known as Hon Hai Precision Industry Co., is Apple's most important manufacturer.
  • Board nominee and semiconductor division chief Young Liu said in an investor briefing in Taipei on Tuesday that the company will support Apple if it decides to move production, though no decisions have been made.
  • It's unclear which manufacturing plants would assume the majority of the company's relocated production. India's facility is currently running quality tests for Apple's iPhone XR series, per Bloomberg.

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