Latest in Gear

Image credit: Zhang Peng/LightRocket via Getty Images

Apple can make US-bound iPhones outside of China if necessary

Foxconn has the capacity if the trade war gets out of control.
508 Shares
Share
Tweet
Share
Save

Sponsored Links

Zhang Peng/LightRocket via Getty Images

If the trade war between the US and China spirals out of control and leads to Chinese retaliation against American tech production, is Apple hosed? Not necessarily. Senior Foxconn exec Young Liu told investors that his manufacturing company has "enough capacity" to make US-bound iPhones outside of China if necessary. About a quarter of that capacity is elsewhere, Liu said, including growing Indian production. While Apple hasn't made any moves on that front, Foxconn can shift its lines elsewhere if things go south.

China reportedly met with tech companies in recent days, telling them not to comply with US orders that would dramatically affect their Chinese manufacturing plans. It allegedly threatened serious consequences, although it didn't outline what those were.

The safety net could be vital for Apple, not to mention for millions of people who could suddenly be cut off from future iPhones. However, this doesn't guarantee that Apple or other companies would be safe. Even if Apple can keep relying on Foxconn outside of China, some of its individual component suppliers are still located in the region -- there could be trouble if any of those partners are cut off. And even a quick transition could still choke production at a critical moment if it happens anywhere near the release of new iPhones. While Apple might avoid the worst, its situation could still be far from ideal.

All products recommended by Engadget are selected by our editorial team, independent of our parent company. Some of our stories include affiliate links. If you buy something through one of these links, we may earn an affiliate commission.
Share
508 Shares
Share
Tweet
Share
Save

Popular on Engadget

Engadget's 2019 Back-to-School Guide

Engadget's 2019 Back-to-School Guide

View
Apple warns against storing its titanium credit card in leather

Apple warns against storing its titanium credit card in leather

View
Google's next Nest Mini speaker could be wall-mountable

Google's next Nest Mini speaker could be wall-mountable

View
Microsoft tests more control for apps that restart with Windows 10

Microsoft tests more control for apps that restart with Windows 10

View
Terminator T-800 and The Joker are coming to 'Mortal Kombat 11'

Terminator T-800 and The Joker are coming to 'Mortal Kombat 11'

View

From around the web

Page 1Page 1ear iconeye iconFill 23text filevr