Foxconn can move iPhone manufacturing completely out of China if required


The trade war "will have some impact, but it will be limited", Liu said.

Two people with direct knowledge of the matter told Reuters that Tai had resigned from the committee to avoid possible conflict of interest between parent Foxconn and its Japanese unit.

Apple has so far escaped the brunt of Donald Trump's tariffs on $200bn (£157bn) of Chinese goods but the USA president has threatened to slap import duties on a further $300bn if trade talks fail to progress. Most of this manufacturing occurs in China, where Foxconn operates 12 factories spread across nine cities.

Tim Cook, meanwhile, has publicly said that he's not anxious about an escalating trade war with China, telling CBS News last week: "The Chinese have not targeted Apple at all, and I don't anticipate that happening, to be honest".

The Cupertino, Calif. -based company's primary manufacturing partner has enough capacity to make all iPhones bound for the US outside of China if necessary, according to a senior executive at Hon Hai Precision Industry Co. They could potentially cut deeply into the profit margins of the iPhone, but according to Foxconn, Apple has nothing to worry about.

Foxconn, the world's top contract electronics assembler, said it had enough capacity outside China to meet Apple's demand in the American market if the need should arise for the iPhone maker to adjust its production lines due to the U.S.

Cupertino hasn't issued any kind of instructions for moving the production of iDevices, but Mr.Liu added that Foxconn is ready "respond swiftly and rely on localized manufacturing".

Worth noting that Foxconn also has a factory in Chennai, India, but now it only runs some tests and isn't manufacturing actual Apple devices.

It's unclear if India will ever become a major production base for Apple's marquee device. The country has summoned United States companies to warn them about honouring the USA's ban and warned of dire consequences. We don't think that Apple will keep a low profile if this starts to affect their business as well.