Apple allegedly urges suppliers to move output from China

Apple has asked its largest suppliers to consider the cost implications of shifting between 15-30% of their output from China to Southeast Asia, the Nikkei Asian Review reported on Wednesday.

Suppliers urged to consider the costs involved in such a move included Foxconn Technology, Pegatron, Wistron, Quanta Computer, Compal Electronics, Inventec, Luxshare and GoerTek.

Not only was China the manufacturing hub for lion' share of its production, it was also Apple's largest overseas market.

But Trump’s threats to levy tariffs on another $300bn-worth of Chinese goods risked escalating tensions with Beijing and possible reprisals against Apple products. Such risks made Apple management nervious that the risk sof placing all its eggs in the same basket were too great and rising.

Hence, even if the trade row with Washington was resolved, Apple was intending to carry through with its plans, several people reportedly told Nikkei.

Among the alternative host countries being considered were Mexico, India, Vietnam, Indonesia and Malaysia, with India and Vietnam the favourites to host future smartphone production, said the Nikkei.