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June 19, 2019, 9:39 a.m. EDT

Apple considers moving 15% to 30% of production capacity out of China: report

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By Emily Bary

Apple Inc. /zigman2/quotes/202934861/composite AAPL -1.49% is considering moving 15% to 30% of its production capacity from China to Southeast Asia, according to a report from the Nikkei Asian Review , which said that the company has asked its suppliers to look into the costs of such a move. The story, which cites unnamed sources, said that trade tensions between the U.S. and China have Apple considering whether to shift some of its production outside of China but that the company may not turn back on its plans even if the trade disputes were settled since Apple sees heightened risks from its reliance on Chinese manufacturing. Apple declined to comment in the Nikkei Asian Review's report. Wedbush analyst Daniel Ives said that "in a best-case scenario," Apple would likely be able to shift 5% to 7% of its iPhone production to India within 12 to 18 months. "Moving 15% of its iPhone production from China to other regions (India and Vietnam would be top candidates) would take at least two to three years in our opinion given the complexity and logistics involved in such a gargantuan endeavor and clearly have its share of risks (e.g., supply chain disruption, higher costs)," he wrote. Apple shares have gained 29% so far this year. The Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA -0.25% has climbed 14% in that time.

/zigman2/quotes/202934861/composite
US : U.S.: Nasdaq
$ 202.59
-3.07 -1.49%
Volume: 20.93M
July 19, 2019 4:15p
P/E Ratio
17.04
Dividend Yield
1.52%
Market Cap
$946.26 billion
Rev. per Employee
$1.98M
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/zigman2/quotes/210598065/realtime
US : Dow Jones Global
27,154.20
-68.77 -0.25%
Volume: 287.69M
July 19, 2019 5:08p
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