Few US firms are as tightly bound to Asia's largest economy as Apple.
- Tapping factories in Brazil and India has not lessened Apple Inc's dependence on China, the company's supply chain data shows, raising the stakes for the iPhone maker as U.S. President Donald Trump wages a trade war and promises more tariffs.Few American firms are as tightly bound to Asia's largest economy as Apple.
But the factories outside China are smaller and, in the case of India and Brazil, Apple only uses them to meet domestic demand. Apple's contract factories inside China, meanwhile, have added far more locations than outside, with Foxconn alone expanding from 19 locations in 2015 to 29 in 2019 and Pegatron going from eight to 12, according to Apple's data. The new locations come as Apple has added watches, smart speakers and wireless headphones to its product lineup.
Apple declined to comment on Reuters' analysis. In July, Chief Executive Tim Cook told investors on the company's quarterly earnings call that he"wouldn't put a lot of stock into" speculation about how the company would shift production because of U.S. tariffs. But Apple's scale works against it because few other nations have workforces as large as China. Factories require highly skilled engineers to design and troubleshoot custom tools and processes. Vietnam, where Apple has manufactured accessories for years, has a population less than one-tenth the size of China.
Apple has so far been spared tariffs on major products, winning a reprieve last year on many wireless devices. And Cook has cultivated a close relationship with Trump over dinners and private meetings at the White House.
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