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Reports: Foxconn Says Prepared To Move IPhone Production Out Of China, If Needed

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Apple Inc's (AAPL) biggest iPhone assembly partner, Hon Hai Precision Co. or more commonly known as Foxconn, reportedly says that the company is prepared to move entire production of iPhones for the US out of China if the current US-China war continues.

The contract manufacturer currently makes most of the iPhones in China mainland.

President Donald Trump has threatened Beijing with new tariffs on about $300 billion worth of Chinese goods, which could lead to taxing Apple's most profitable product, iPhones.

Apple would be required to think about its manufacturing strategy after tariffs up to 25 percent come into effect at the end of June. The new tariff is expected to apply to the wholesale cost of devices like phones, laptops, and tablets imported from China to the USA, including iPhones.

"Twenty-five percent of our production capacity is outside of China and we can help Apple respond to its needs in the U.S. market," said Foxconn Semiconductor Chief Young Liu, Bloomberg reports. "We have enough capacity to meet Apple's demand."

Liu said Foxconn will fully support Apple if it needs to adjust its production as the U.S.-Chinese trade war gets more ugly.

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