Apple Supplier Luxshare Eyes US Manufacturing as Trump Tariffs Threaten China Production

The post Apple Supplier Luxshare Eyes US Manufacturing as Trump Tariffs Threaten China Production appeared first on Android Headlines.

Apr 9, 2025 - 13:54

Summary: Luxshare currently manufactures iPhones and AirPods in China, currently. They are weighing whether they should move some of its manufacturing to the US, likely as a way to avoid President Trump’s tariffs. The company is also weighing moving some production to India as well.

Luxshare, a key Apple supplier that manufactures iPhones and AirPods in China, is considering moving some of its production to the United States, likely in response to President Trump’s tariffs on Chinese goods. The company is also exploring potential manufacturing expansion in India, according to recent reports.

Wang Laichun, the chairwoman of Luxshare, said in a private call with analysts, as seen by Reuters, that the tariffs would have little impact on profits and revenue. This is because Luxshare only exported a small amount of finished products to the US. However, the firm did need to consider more investment abroad and idling some investment plans in China. “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 market.”

Reuters is also reporting that Wang did not mention Apple or any other customers of Luxshare on this call.

Manufacturing is unlikely to move from Vietnam

In recent years, many tech companies have begun moving their manufacturing to Vietnam, relying on China less. However, it’s unlikely that consumer electronics production would move away from Vietnam unless it faced tariffs greater than 10% on those products from other countries. Because its industrial infrastructure and talent pool were relatively mature.

It’s important to note that Vietnam is currently negotiating with the US over these tariffs. This could change, if the negotiating is successful.

Wang also acknowledged concerns that customers would seek lower prices because of the tariffs, “Customers have always collaborated with suppliers on how to enhance competitiveness.” Seeking a lower price would mean the tariff on the product would be lower, resulting in the company charging less to consumers in the US and other countries.

The post Apple Supplier Luxshare Eyes US Manufacturing as Trump Tariffs Threaten China Production appeared first on Android Headlines.