Luxshare, a major supplier for Apple, currently manufactures iPhones and AirPods in China. The company is contemplating shifting some of its production to the United States as a strategy to mitigate the impact of tariffs imposed by the Trump administration.

In addition to this potential move, Luxshare is also exploring the option to expand its manufacturing operations in India. Wang Laichun, chairwoman of Luxshare, conveyed during a private conference call with analysts that the tariffs are expected to have minimal effect on the company’s profits and revenue, primarily because Luxshare exports a relatively small quantity of finished products to the U.S.

However, she emphasized the need to consider more significant investments abroad and to delay certain investment plans in China. She stated, “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.”

Interestingly, Wang did not mention Apple or any other specific customers during this discussion, leaving some analysts curious about the potential implications for Luxshare’s relationships with its key clients.

In recent years, many tech firms have begun relocating manufacturing to Vietnam to lessen their dependence on China. Nonetheless, it is deemed unlikely that consumer electronics production would significantly shift away from Vietnam, unless tariffs exceeded 10% on those goods from other nations.

Vietnam boasts a robust industrial infrastructure and a skilled labor pool, making it an attractive location for manufacturing. It is also noteworthy that Vietnam is currently engaged in negotiations with the United States regarding these tariffs.

Successful negotiations could significantly alter the landscape of production in the region. Wang recognized that tariff impacts could prompt customers to seek lower prices, indicating a collaborative effort to enhance competitiveness in the market.