iPhone Production Could Move Out Of China To Avoid Trade Tariffs

Foxconn, Apple’s contract manufacturer for iPhones, is a behemoth in China’s electronics manufacturing industry. Apple’s iPhones are thus produced in China and that hasn’t been a problem for the company until now as the possibility of iPhones being hit by trade tariffs imposed on China looms large. This would make Apple’s smartphones more expensive in the company’s home country. It’s possible that Foxconn might move iPhone production outside China to limit the impact of these tariffs.

Reuters reports that Foxconn is thinking about setting up a factory in Vietnam in order to mitigate the impact of the ongoing trade war between the United States and China. Vietnam and Thailand have reportedly been shortlisted as preferred destinations to shield manufacturing operations from the trade war.

“Foxconn Group and the Hanoi People’s Committee are working together to open an iPhone manufacturing facility in Vietnam to negate the impacts of the U.S.-China trade war,” reported the Vietnam Investment Review.

Vu Tien Loc, Vietnam Chamber of Commerce and Industry’s head, told Reuters that the possibility of a factory being opened in the country is being discussed with Foxconn. The company itself hasn’t commented on the matter as yet.

Even if they do reach an agreement on setting up a factory, it won’t happen overnight. Billions of dollars in investment would be required, with some coming from Apple itself, aside from ample time to set up a factory that can manufacture iPhones up to Apple’s exacting standards.

Adnan Farooqui
Categories: Cellphones
Tags: foxconn, iPhone