Apple is exploring moving between 15 and 30 percent of its hardware production out of China, according to a new report by Nikkei.
The company reportedly has a growing team looking into moving production, and has asked key manufacturing partners like Foxconn, Pegatron, and Wistron to evaluate the available options.
The catalyst for the shift is the ongoing trade war between China and the US, which is expected to intensify at the end of this month with the introduction of 25 percent tariffs on devices including phones, laptops, and tablets.
However, Apple reportedly wants to shift production regardless of whether the trade dispute gets resolved.
”A lower birthrate, higher labor costs and the risk of overly centralizing its production in one country.
These adverse factors are not going anywhere… with or without the final round of the $300 billion tariff,” one executive, apparently from an Apple supplier, told Nikkei.