Apple is actively discussing with its major suppliers the feasibility and costs of relocating approximately 30% of its production from China to Southeast Asia, aiming to mitigate the impact of escalating US-China tariffs.
This strategic move comes in response to the growing risks associated with heavy reliance on China for manufacturing. Currently, about 90% of iPhones are assembled in China, making it a critical market and production hub for the company. A dedicated team of 30-40 members has been tasked with exploring alternatives, focusing on key assemblers such as Foxconn, Pegatron, Wistron, and major component manufacturers like Quanta Computer, Compal Electronics, and others.
Countries under consideration for this production shift include Mexico, India, Vietnam, Indonesia, and Malaysia, with Vietnam and India emerging as preferred options. Apple plans to engage with governments in these regions to facilitate negotiations. 
As the trade war intensifies, President Trump has indicated potential tariff increases on Chinese goods up to $300 billion. Foxconn has expressed its capability to meet Apple’s production needs in the U.S. if required, while Pegatron has already initiated a partial production shift to Indonesia.
While specific timelines for finalizing the relocation plan have not been disclosed, it is estimated that it will take around 18 months to commence production once a new location is selected. There is no deadline for suppliers to halt business proposals, according to a report by Nikkei Asian Review.
