Apple supplier luxshare is interacting with customers on how to respond to American tariff by moving more production outside China, including the United States with customers, its chairman on Wednesday told analysts in a telephone call.
The Chinese company’s comments, which collect iPhones and create airpods, provide a glimpse in consultations by companies around the world, which hit the foot to deal with the tariff of President Donald Trump, which is effective on Wednesday.
In a transcript of calls seen by Reuters, Wang Likun said that the tariff would have little impact on profits and revenue, as Luxashair exported only a small amount of finished products to the United States.
But this needed to consider more investment abroad and smooth some investment plans in China, said that during the call, it increased for more than an hour.
“If there is a commercial guarantee and we are able to make a good evaluation, we do not deny some products to be localized to meet the needs of the US market,” Wang said.
Luxshare told some customers that he would need such a guarantee in response to his questions, which is about the possibility of providing some services for some services in North America for automation, he said.
“But for this step, we will also weigh some long -term development and safety ideas.”
Apple’s suppliers, who are seen as a huge risk for Trump’s tariff, do not publicly comment on the American firm and Wang did not identify Apple or any customer during the call.
Luxshare did not respond to the request for immediately further comments. Apple did not immediately respond to the remarks request.
In addition to factories in China, Luxeshare has production base and research centers in Malaysia, Thailand, Vietnam, United States and Mexico.
In addition to the supply of Apple, it designs and creates electronic devices such as routers, wireless charging modules and video conferencing equipment.
Wang said that Luxeshare was considering more investment in Southeast Asia, but did not say where.
Consumer electronics production is unlikely to move away from Vietnam until the tariffs facing it were not 10 percent more than the products of other countries, as its industrial infrastructure and talent pools were relatively mature.
A large exporter to the United States and a several Chinese manufacturers including Luxashare have expanded in recent years, Vietnam with 46 percent tariff, 36 percent for vs Thailand and 24 percent for Malaysia.
The Vietnamese government is interacting with Washington on Tariff.
Luxshare was not considering expanding in India, but if the customers made special requests, they considered it, Wang said.
He said that the company needed 1 to 1-1/2 years to create and start a new production line at the places where there was already a factory.
Asked if the tariff will be jointly borne by businesses in the supply chain and end consumers, Wang said, “Aaj Tak, all hardware manufacturers do not legs for tariffs or logistics warehousing … Nothing happened and I think it will happen in the future.”
But he admitted concerns that customers would seek lower prices due to tariff, saying, “Customers have always collaborated with suppliers how to increase competition.”
Âİ Thomson Reuters 2025
