A senior executive at Foxconn says that if the current trade war demands, the production of all iPhones destined for the United States can be withdrawn from China. According to the Wall Street Journal Bloomberg reported by Young Liu, director of the Foxconn Semiconductor Business Group, 25% of our production capacity is at a Liu investor meeting outside of China. We can help you meet your needs. "(19659004). Apple has not yet directed Foxconn to move production in China, according to Liu.
Apple needs to reconsider its manufacturing after a maximum of 25% duty is imposed at the end of June. The new tariffs are expected to apply to wholesale costs for devices imported from China to the United States, such as cell phones, notebooks and tablets. It's up to Apple to decide how much to pay for American consumers. Analysis by Bloomberg analysts say analysts can reduce demand by 10 to 40 percent through price hikes between September and 16 percent, according to analysts. Also, if you fully absorb the costs, your earnings per share could be 6-7%.
Foxconn gives Apple a big incentive to help. Foxconn accounted for half of the revenue. Decreasing demand for the iPhone will reduce Foxconn's manufacturing demand. The manufacturer is already preparing to switch some of its iPhone production to India to avoid 20 percent import tariffs in India.
However, because China is planning to retaliate by raising its own tariffs on the Trump Administration, Apple will not be able to completely avoid the effects of the trade war.