Apple could potentially move iPhone production out of China should import tariffs skyrocket according to Bloomberg, citing sources within Apple that claim the company will “sit tight for now” and making plans for future production changes.
The move in production location would only go-ahead should the Trump administration impose a higher rate on imported goods part of the president’s ongoing trade war with China.
Although the change in manufacturing location won’t effect the end customer such as ourselves, it would be interesting to see how Apple would deal with effectively loosing access to the country which produces the majority of all iPhone models. – One would assume India would be a country of interest given that a small number of older iPhone models are currently produced there.
Bloomberg claim within their report that Apple will keep iPhone production in China should import tariffs reach 10 percent, but anything nearing 25 percent will mean the company will begin to look elsewhere to avoid such fees.
The tech giant’s suppliers intend to stick with the existing model even if the U.S. levies a 10 percent import tariff on smartphones, the people said, asking not to be identified talking about a private matter. But it will have to reassess the situation should U.S. President Donald Trump decide on a more punitive 25 percent, the people said.