US tariff threat: iPhone-maker Apple wants suppliers to assess cost of shift from China

Apple has asked its major suppliers to assess the cost implications of moving 15%-30% of their production capacity from China to Southeast Asia as it prepares for a restructuring of its supply chain, according to a Nikkei Asian Review report on Wednesday.

Apple’s request was a result of the extended Sino-US trade dispute, but a trade resolution will not lead to a change in the company’s decision, Nikkei said, citing multiple sources. The iPhone maker has decided the risks of depending heavily on manufacturing in China are too great and even rising, it said.

Key iPhone assemblers Foxconn, Pegatron, Wistron, major MacBook maker Quanta Computer, iPad maker Compal Electronics and AirPods makers Inventec, Luxshare-ICT and Goertek have been asked to evaluate options outside of China, Nikkei reported.