Foxconn, Apple’s biggest iPhone assembler, says it has a Plan B if the U.S.-China trade war worsens. According to a report by Bloomberg, Foxconn, also known as Hon Hai Precision Industry Co., has enough production capacity outside of China to fulfill orders for mobile phones bound for the U.S. Most phones are now made in China.
Korean smartphone giant Samsung has already moved nearly all of its phone production to Vietnam from China, where sales of its phones have fallen from No. 1 to barely any.
But it would be hard for Apple to reduce reliance on China. Even if phones are assembled elsewhere, most of the parts would still need to come from China. Plus, Chinese consumers are important because they are willing to spend on luxury hardware like iPhones.