Apple Inc. has asked its largest suppliers to consider the costsof shifting 15 percent to 30 percent of their output from China toSoutheast Asia, in a dramatic shakeup of its production chain, theNikkei reported.

The U.S. tech giant asked “major suppliers” to evaluate thefeasibility of such a migration, the newspaper cited multiplesources as saying. Those included iPhone assemblers FoxconnTechnology Group, Pegatron Corp., and Wistron Corp.; MacBook makerQuanta Computer Inc.; iPad maker Compal Electronics Inc.; andAirPod makers Inventec Corp., Luxshare-ICT, and GoerTek Inc.,Nikkei cited them as saying.

China is a crucial cog in Apple's business—the origin of most ofits iPhones and iPads, as well as its largest international market.But President Donald Trump has threatened Beijing with new tariffson about $300 billion worth of Chinese goods, an act that wouldescalate tensions while levying a punitive tax on Apple's mostprofitable product. Company spokeswoman Wei Gu didn't respond to arequest for comment.

Continue Reading for Free

Register and gain access to:

  • Thought leadership on regulatory changes, economic trends, corporate success stories, and tactical solutions for treasurers, CFOs, risk managers, controllers, and other finance professionals
  • Informative weekly newsletter featuring news, analysis, real-world cas studies, and other critical content
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the employee benefits and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.