Apple Reportedly Planning To Move Some Production Outside China

This possibility has come up multiple times over the past few weeks. Apple is seeking to avoid tariffs on products that it manufactures in China and then imports into the United States for sale. In order to avoid the tariffs that the United States has imposed in its ongoing trade war with China, the company would have to move production outside the People’s Republic. According to a new report, Apple has decided to move some production outside China.

Nikkei reports that Apple is mulling a shift of between 15 and 30 percent of hardware production outside China. It’s said to have a growing team exploring this possibility and has asked manufacturing partners like Foxconn, Wistron, and Pegatron to evaluate their options.

The trade dispute between the two super powers is only set to intensify in the coming weeks with the introduction of 25 percent tariffs on products like smartphones, tablets, and laptops. Apple is said to be interested in moving production regardless of the trade dispute. It is acknowledging the risks of being overly reliant on production in China.

According to one executive familiar with the situation, “A lower birthrate, higher labor costs and the risk of overly centralizing its production in one country. These adverse factors are not going anywhere,” which is why Apple may be willing to make the move even if no tariffs are imposed.

Apple hasn’t commented on the matter as yet.

Adnan Farooqui
Categories: General
Tags: apple