Malaysia among replacements as Apple mulls moving ops out of China

Apple is reportedly looking at moving some production out of China

A group of more than 30 people from Apple's capital expense studies team have been negotiating production plans with suppliers and governments over monetary incentives that could be offered to lure Apple manufacturing, the report said.

"The proposed tariff list covers all of Apple's major products, including iPhone, iPad, Mac, AirPods, and AppleTV, as well as the parts and batteries used to fix products in the United States", the company said.

China is a key market for Apple as well as a major production centre for its devices. -China trade war gets out of hand: Primary manufacturing partner Hon Hai Precision Industry Co. has said it has enough capacity to make all US -bound iPhones outside of China if necessary, Bloomberg News reported last week.

The Nikkei Asian Review reports that Apple is considering moving between 15 and 30 percent of its iPhone production away from China in an attempt to insulate itself from the effects of the trade war between the US and China.

But India and Vietnam are among the favourites for smartphones, said Nikkei. The company also said that tariffs would impede Apple's ability to compete globally.

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China is also a huge market for Apple, with the economic slowdown in the country cited as a major factor in lower than expected demand for iPhones and shrinking revenues back in January.

However it would take several years to move even a portion of production away from China given the complex ecosystem that has been established there.

Cupertino is looking to move between 15% and 30% of all production, “with or without the final round of $300 billion tariffs”. We've got a couple of Southeast Asian countries like Indonesia, Malaysia and Vietnam, as well as Mexico and India.

Besides Foxconn, key Apple assemblers include Pegatron, Wistron, Quanta Computer, Compal Electronics, Inventec, Luxshare-ICT and Goertek. Some companies that depend on Chinese imports for some aspects of their business opposed the tariffs, stating they will increase the cost of production or force them to seek alternative suppliers. Company spokeswoman Wei Gu didn't respond to a request for comment.

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