Apple Supplier Luxshare Considers U.S. Manufacturing to Offset Tariffs
TMTPOST -- Apple supplier Luxshare is exploring the possibility of manufacturing more products in the United States and other locations outside China to mitigate the impact of U.S. tariffs, the company’s chairwoman revealed during a conference call with analysts on Wednesday.
Wang Laichun, chairwoman of Luxshare, which assembles iPhones and produces AirPods, provided insights into the company's strategic considerations as businesses worldwide grapple with the tariffs imposed by President Donald Trump, which took effect on Wednesday. According to a transcript of the call obtained by Reuters, Wang stated that the tariffs would have minimal impact on Luxshare’s profits and revenue since the company exports only a small portion of its finished products to the United States.
However, she noted that Luxshare may need to increase investments abroad and postpone some of its investment plans in China during the more than hour-long call.
"If there is a commercial guarantee and we are able to conduct a good evaluation, we do not rule out having some products being localized to meet the needs of the U.S. market," Wang added.
Luxshare has informed some customers that it would require such guarantees in response to their inquiries about the possibility of providing services in North America, particularly for products manufactured with a significant level of automation, she explained.
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