Apple To Make Its Own Modems Out Of China If Tariffs Reach 25%

According to Bloomberg News, in case the tariffs on US imports skyrocket, Apple would move its production away from China. As reported, Apple is planning to make its own modems out of China if tariffs reach 25%.

In the meantime, Apple’s supplier will stick to the current model, although the US might impose a rise of 10% on smartphones imports, according to some sources close to the Cupertino-based company. However, they said that Apple’s suppliers would move the production out of China in the case Donald Trump will impose a 25% increase in imports tariffs.

“iPhones – the majority of which are made by assembly partner Hon Hai Precision Industry Co. in China and shipped around the world – have so far been spared in a tit-for-tat trade war between the world’s two largest economies. But Trump told the Wall Street Journal last month that tariffs could be slapped on smartphones and laptops made in China, the world’s largest manufacturer of electronics,” wrote Financial Post, citing Bloomberg News.

Apple To Make Its Own Modems Out Of China If Tariffs Reach 25%

China has always been the HQ of Apple’s production of components and devices, but the company might get affected by the trade war between the United States and China, the world’s largest economies. If the US financial authorities increase imports tariffs by 25%, then the Cupertino-based company must rethink its strategy.

To counteract the potential imports tariffs rise, Apple might be forced to make its own modems out of China, at first, while they would move all the production of its devices out of the world’s second-largest economy.

Recently, Tim Cook surprised everyone by saying that “it’s not true that the iPhone is not made in the United States.” He explained that some iPhone and iPad components, such as the iPhone glass cover, are produced in the US, and then they are shipped to China for assembly. Everything will change if the US raises the imports tariffs by 25%.

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About the Author: Anna Galvez

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