Producers of iPhones and computers are getting ready to trade war

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Producers of iPhones and computers are getting ready to trade war

August 17, 2018 - 11:45
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Producers of electronics from iPhone to computers are getting ready to trade war and making plans for transfer of production from China to such locations, as Easter Europe, Mexico and Southeastern Asia, Bloomberg reports.

Science and technology Museum in Shanghai, China | © niko, CC0 1.0

Producers of electronics from iPhone to computers are getting ready to trade war and making plans for transfer of production from China to such locations, as Easter Europe, Mexico and Southeastern Asia, Bloomberg reports.

And although consumer electronics is not hit by President Trump’s tariffs yet, there is a fear that such goods might be included into the next list valued $200 billion.

Pegatron company producing for iPhone considers options of increasing capacities in Czech Republic or Mexico. In the long-term the company may add factories in India or Southeastern Asia.

Six largest electronics producers in Taiwan include Compal Electronics Inc., Hon Hai Precision Industry Co., Inventec, Pegatron, Quanta Computer Inc. and Wistron Corp. Their total revenue in 2017 amounted to $269 billion. Today 15 out of 20 exporter from China are based in Taiwan.

Increase of labor costs already made producers in the region look for other attractive alternatives to place their factories. Now, when it is obvious that trade conflict between China and US will not be solved any time soon, issue of moving capacities out of country became important.