Apple could move iPhone production out of China if a 25% tariff is imposed
The iPhone XS and XS Max
At the moment, Apple has no immediate plans to move its production outside of China. In fact, if President Trump imposes a 10% tariff on electronic imports, the company is reportedly prepared to take the hit and will continue to manufacture its devices in the market. However, if the President chooses a much steeper 25% tariff, it’s reported that Apple will then proceed to reassess its situation.
Apple could also choose to move iPhone production out of China – it already assembles some devices in India – but this would require a military-like operation. After all, Apple relies on hundreds of suppliers that are all located within Shenzhen, China, where the majority of the company’s iPhones are manufactured.
From a financial point of view, it’s claimed that a 10% import tariff would result in an earnings-per-share decline of around $1. However, in the case of a 25% tariff, this would increase to a significant earnings-per-share drop of $2.50 if Apple continues with its current manufacturing model.
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