Foxconn can make all iPhones outside of China (if necessary)

Foxconn can make all iPhones outside of China (if necessary)

An entirely India-made iPhone lineup?

Hon Hai, known also as Foxconn, is the American giant's most important manufacturing partner. Its list of clients is long, eclectic, and incredibly impressive, including Xiaomi, Nokia, Amazon, Sony, Microsoft, Motorola, and Google (to only name a few). The new tariff is expected to apply to the wholesale cost of devices like phones, laptops, and tablets imported from China to the United States of America, the market where a third of Apple's iPhone revenue comes from.

Apple now has a large iPhone manufacturing base in China - thanks to Foxconn, the Taiwanese based manufacturing company.

The wage increase applied only to the company's employees in Taiwan, totaling 6,000 according to local media, and was carried out based on employee performance, Foxconn said.

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The comments come as the trade war between the USA and China deepens, with President Trump recently saying that he would move forward with a plan to impose tariffs on about $300 billion worth of additional goods if Chinese President Xi Jinping does not attend the G20 summit at the end of June.

However, with China planning to retaliate to the Trump administration with a tariff increase of its own, it will be hard for Apple to escape the impact of the trade war entirely. To meet the demand, Foxconn would need at least one or two substantial factories outside China.

Affected by the mounting US-China trade tensions, some customers did switch orders to other partners. Older iPhone models are already being assembled at a plant in Bangalore.

If Trump's threat becomes a reality, Apple will be greatly impacted, Liberty Times said. The company will respond swiftly and rely on localized manufacturing in response to the trade war, just as it foresaw the need to build a base in the US state of Wisconsin two years ago, he said. It is also the largest worldwide market for these devices.