Apple’s China-based manufacturing has become a US political issue, and fresh reports say the company is testing suppliers’ appetite for change.
Apple works with Foxconn, one of the world’s largest device assemblers, and by May this year it was already weighing India as an alternative. Newer coverage suggests Apple is also signaling interest in US production, again with Foxconn in the mix.
Japan’s The Nikkei links the story to new US President Donald Trump’s criticism of Apple and to talk of bringing plants home. According to Nikkei, Apple began early inquiries in June and spoke with critical suppliers. Taiwan-based Pegatron reportedly turned Apple down, citing higher costs.
Foxconn and Pegatron together are said to build about 200 million iPhones a year for Apple.
India, the US, and robots
In May we reported Foxconn’s plan to buy about 1,200 acres in Maharashtra, India, for a facility expected to cost around $10 billion, with a goal of 10 to 12 plants in India by 2020. So the Taiwanese giant is serious about stepping outside Greater China. With roughly half of Foxconn’s business tied to Apple and robotics rising on the factory floor, a deal of some kind is still plausible.
If Trump follows through on tariffs as high as 45% on Chinese goods, Apple may feel forced to move. Neither Foxconn nor Apple has commented, and it is unclear how firm Trump’s stance will be. For now, the only option is to watch what happens next.
