The tense situation that exists in that trade war between the United States and China has had Huawei as its first victim, but there are those who think that China could respond by forbidding Chinese companies from manufacturing Apple’s iPhone in retaliation , for example. The CEO of Huawei already said that he himself would be the first to protest against these reprisals.
That threat seems serious, but one of the people in charge of Foxconn, main responsible for the production of the iPhones, has indicated in Bloomberg that if necessary they could take out of China all the production that is directed to supply the US demand, and that they have enough capacity to manufacture all the iPhone that are going to be sold in the United States to avoid the tariff increase expected for the end of June.
Foxconn prepared, Apple does not move that tab at the moment
A senior manager of the company called Young Liu revealed that “25% of our production capacity is outside of China and we can help Apple respond to its needs in the US market.”
According to this director, Apple has not given instructions in this regard to Foxconn, but could do so in light of how the rules of the game have changed between the two countries: tariffs for imports of electronic devices could grow up to 25% by the end of July, and that would raise changes in the prices of products such as mobile phones and tablets that are imported from China and arrive in the United States.
According to Bloomberg analysts, companies such as Apple could move this increase in taxes to users, who would see an increase in prices that could be between 9 and 16% and that would lower the demand between 10 and 40% according to those estimates.
The impact of the commercial war would therefore be remarkable not only for the companies but for the users : not only for not being able to access certain devices, but because the price of many of them could rise before all these difficulties.
Meanwhile, Foxconn continues to be one of Apple’s strongest partners, and much of its revenue is due to that collaboration . The company has been preparing the start-up of a production plant in Wisconsin for a while – in exchange for tax incentives, of course – that could become operational by the end of 2020 and that would initially provide work for more than 2,000 people in that region.