Apple considers moving some production out of China amid trade tensions: report

Apple is considering moving some of its production outside of China amid rising trade tensions between Washington and Beijing, The Wall Street Journal reported Thursday.

The company is looking into the feasibility of shifting up to one-third of the production for some devices out of China, sources told the Journal.

Destinations under consideration reportedly include Southeast Asia.

{mosads}Any major shift would take years to implement, given the company relies on hundreds of thousands of workers available in China to manufacture the iPhone, the Journal noted.

Foxconn Technology Group, Apple’s biggest assembler, is starting preparations to ramp up production for the new iPhones coming out this fall, sources told the newspaper.

“There is some flexibility to move Mac and other products, but it won’t be easy,” Mehdi Hosseini, an analyst with Susquehanna International Group who focuses on the technology supply chain, told the Journal.

“You have to have relatively skilled labor. You have to create an inventory hub. It would take time.”

Apple did not immediately respond to a request for comment on the report.

The reported shift out of China comes amid rising trade tensions with the U.S.

President Trump increased tariff rates on $200 billion of Chinese imports last month after trade talks between the two countries faltered. The president has also threatened to impose new tariffs on an additional $300 billion of imports. 

China has responded with retaliatory tariffs.