In response to American sanctions against Huawei, many Chinese users have already announced a boycott of Apple products . But the corporation may suffer from the "friendly fire" during the trade war between China and the United States. Foxconn, one of the key partners of the vendor, has announced its readiness to move its conveyors outside the PRC if the situation with local production is not the best.
Foxconn top manager Yun Liu said in an interview with Bloomberg and The Wall Street Journal that 25% of the company's production capacity is located outside China. It is expected that the transfer of part of the assembly lines of the iPhone to India will help Apple to avoid the 20% mark-up on imports in this country, and protective duties on goods imported from China to the United States.
According to analysts, the US market accounts for a third of all brand revenues — a rise in customs tariffs may lead to price increases for buyers up to 16% and a fall in demand to 40%. If Apple decides to keep prices at the expense of lowering its own profits, this will lead to a drop in its stock returns by 6-7%. Foxconn is extremely interested in continuing cooperation with Apple, whose orders, according to network sources, provide half of the company's revenues.
Earlier, the head of Huawei, Ren Zhengfei, said he did not support the idea of imposing retaliatory sanctions by the PRC against Apple within the framework of a trade war with the United States.