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Nikkei: Apple Could Shift Some Production Capacity Out Of China

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Nikkei: Apple Could Shift Some Production Capacity Out Of China

Apple Inc. (NASDAQ: AAPL) is considering shifting 15% to 30% of its output from China to Southeast Asia due to the trade war, according to Nikkei Asian Review reports.

Key iPhone assemblers include Foxconn, Pegatron and Wistron have been asked to evaluate options outside of China, according to sources. Apple's top 10 suppliers will likely see cost adjustments if this change is made.

According to Nikkei sources, Apple has decided the risks of relying heavily on manufacturing in China is too great.

The trade war between China and the U.S. has been escalating. On May 15, the Trump administration added Huawei to a list of companies that U.S. firms can no longer trade with unless they have a license. The "entity list" bans the company from acquiring technology from U.S. firms without government approval.

Trump and Chinese President Xi Jinping are expected to meet at the G-20 summit in Japan next week.

Apple shares closed Tuesday at $198.45, up 2.3 percent.

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