Sheet Dailymail quoted experts said the US trade war - China could make the iPhone production costs are out of control. Therefore, customers may have to spend an additional $ 300 for the iPhone 11.
Much of the equipment is a brand of Apples made in China, but recent conflicts have forced supply chains to move elsewhere.
For example, Foxconn, the leading partner of Cupertino giant, plans to move production lines if the Donald Trump government imposes many tariffs on Chinese goods.
Rosemary Coates, an analyst at Blue Silk Consulting, said: "Most large companies can switch production lines, but the process will not happen one day or two. In fact, there is nowhere to compete with China’s current production environment. ”
When placing a factory in another country, the owner will have to hire new workers and retrain from the beginning. The process of re-establishing the supply chain will take 12 to 18 months depending on the specific conditions.
Even India, where there are abundant human resources, has not fully met the infrastructure. China has a deep-water port, a train system and an 8-lane highway that is ideal for production.
"25% of our production lines are outside of China, and we can meet Apple’s needs in the US market," Young Liu, Foxconn’s semiconductor director, responded to investors. said.
According to the Wall Street Journal , the company has factories in Brazil, Indonesia, Japan, Mexico, Czech, USA, Australia and Vietnam. But the company did not specify when the plan was and how long it took to complete the relocation.
IPhone production costs will increase by 30%. Photo: Apple.
If Apple moved the iPhone factory out of China, the cost could increase by 30%. It is a complex line that allows millions of phones to be created.
Not to mention, a product consists of many different components, so the supply chain also changes. Therefore, it needs time to fully control all stages.
Of course, Apple will add costs incurred in product prices so new customers are the most disadvantaged.
Earlier this month, the company issued a warning that fourth-quarter revenue would not meet expectations, marking the first time in nearly 17 years it had to do so.
