Foxconn can make all iPhones outside of China (if necessary)

Apple Has a Backup Plan If the U.S.-China Trade War Triggers iPhone TariffsMore

Moves like Foxconn's potential shifting of manufacturing of US-bound iPhones away from China would mean changes for its supply chains and likely require new facilities. The Taiwanese contract manufacturer now makes most of the smartphones in the Chinese mainland.

Liu said Foxconn's manufacturing capacity outside of China is sufficient to supply Apple and other customers with products for the USA market and that production could be expanded at factories globally "according to the needs of our clients". Analysts have also predicted that Apple leaves itself open as a valuable target.

Liu told an investor conference Tuesday that 25% of Foxconn's production capacity is outside of China and can help clients respond to their needs in the U.S. market.

According to a senior executive at Hon Hai Precision Industry Co Ltd.

Foxconn Technology Group said it is ready to shift production for Apple out of China in order to avoid United States tariffs on products from China.

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Apple shares were up less than 1%, to $194.40, in New York Tuesday morning.

The Hon Hai official also revealed that the company is now investing in its Indian production facilities, suggesting that if needed, more of the iPhone output could come from this country if things get more complicated in China for Apple.

Liu disclosed that clients have not asked Foxconn to move production out of China so far, but the company is capable of moving productions elsewhere based on customers' needs.

He added the project, which includes manufacturing of displays and servers, was poised to go into production by the end of next year. Older models are already assembled at a Wistron plant in Bangalore.

Liu also suggests that most of the non-China capacity would be done in India where investment is already being made for Apple device production.

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