Apple gains after iPhone assembler Foxconn says it can shift capacity from China

Martin Baccardax reports for TheStreet:

Apple Inc. shares were indicated higher in pre-market trading Tuesday after its key iPhone assembler said it can make the tech giant’s flagship product outside of China, easing concerns that tariffs might disrupt its supply chain.

Han Hai Precision Industry Co., better known as Foxconn, told investors Tuesday that “our production capacity outside China is enough to meet demand from the U.S.”, while noting that the trade situation between the world’s two biggest economies is “increasingly tough”. Apple CEO Tim Cook told CBS News last week that he doesn’t expect China to target his company with specific tariffs…

Young Liu-Way, an incoming member of Foxconn’s re-vamped board of directors, told an investor conference in Taipei that around 25% of the group’s production capacity sits outside of China, allowing it the ability to “respond to (Apple’s) needs in the U.S. market.

MacDailyNews Take: Over time, the facts come out.

Navigating issues such as this is why Tim Cook gets the big money. Still, this whole China thing, at this point, is still overblown by far too many.MacDailyNews, May 17, 2019

People tend to fear the worst. It almost never happens.MacDailyNews, May 14, 2019

5 Comments

    1. China is here to stay and taking the last steps to control Hong Kong, be ready for 2-3 million new Chinese coming to Canada (west coast), America, and Australia in the next 5 years.

    2. Then you are easily bought.
      There is a world of equivocation between ‘can’ and ‘will definitely’ via could_might_may_”exploring”_……”intending to”
      …… ad nauseum before we get to “done deal”
      I’d suggest stock market manoeuvring as more likely.

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