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Home / Business / Apple is considering moving production from China to avoid tariffs: WSJ

Apple is considering moving production from China to avoid tariffs: WSJ



Apple Chief Design Manager Jony Ive (L) and Apple CEO Tim Cook inspect the new iPhone XR during an Apple special event at Steve Jobs Theater on September 12, 2018 in Cupertino, California.

Justin Sullivan | Getty Images News | Getty Images

Apple is considering moving final assembly for some products out of China to avoid the burden of possible US rates, Wall Street Journal reported Thursday.

Apple has not made any decision to move production out of China, which can still take months to put in place once, according to Journal. But the company has asked the suppliers to find out that it is possible to change the final assembly for some units to places such as Southeast Asia, reported journal. Apple's stock was up by more than 1

% in market trading.

Earlier this month, Foxconn, Apple's main iPhone and iPads provider in China, said Bloomberg has the ability to build enough iPhones outside the country to meet demand. Apple is expected to launch its new iPhones in September. US President Donald Trump hiked tariffs by 25% to $ 200 billion last month and warned he could spend the same on another $ 300 billion.

Apple did not immediately respond to CNBC's comment request. Foxconn refused to comment.

The financial burden could force Apple to make its new iPhones even deeper if it doesn't find an alternative to manufacturing in China, as consumers are already less willing to pay for new upgrades. JP Morgan analysts said in a note last month that the company would probably have to increase iPhone prices by about 14% to compensate for the effects of the charges.

Apple has already begun to accelerate the production and shipment of some of its products made in China before inventory increases, the Journal reported. But Foxconn has already begun preparing for the production of new iPhone models in China, the report said.

Read the full report on The Wall Street Journal.

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