APPLE Inc's suppliers will consider shifting iPhone production away from China in the event that the US implements a 25 per cent import tariff on smartphones, reported Bloomberg.
The tech giant's suppliers aim to uphold the existing arrangement even if the US levies a 10 per cent import tariff on smartphones, said an insider. However, it will have to reassess the situation should US President Donald Trump decide on a more punitive 25 per cent, the people said.
iPhones - the most of which are made by assembly partner Hon Hai Precision Industry Co. in China and shipped globally - have so far been spared in a tit-for-tat trade war between the world's two largest economies. Yet, Mr Trump told the Wall Street Journal in November that tariffs could be levied on smartphones and laptops manufactured in China.
Apple has long used China as its production base for everything from its signature device to iPads and Macs. The company's supply chain now spans hundreds of companies, culminating in assemblers such as Hon Hai and Pegatron Corp.
An Apple partner has already suggested alternative locations for non-iPhone production but the US company has indicated there's little need to make such a move for now, another source said.
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The tech giant's suppliers aim to uphold the existing arrangement even if the US levies a 10 per cent import tariff on smartphones, said an insider. However, it will have to reassess the situation should US President Donald Trump decide on a more punitive 25 per cent, the people said.
iPhones - the most of which are made by assembly partner Hon Hai Precision Industry Co. in China and shipped globally - have so far been spared in a tit-for-tat trade war between the world's two largest economies. Yet, Mr Trump told the Wall Street Journal in November that tariffs could be levied on smartphones and laptops manufactured in China.
Apple has long used China as its production base for everything from its signature device to iPads and Macs. The company's supply chain now spans hundreds of companies, culminating in assemblers such as Hon Hai and Pegatron Corp.
An Apple partner has already suggested alternative locations for non-iPhone production but the US company has indicated there's little need to make such a move for now, another source said.
WORLD SHIPPING