The suppliers of Apple Inc may decide to shift the iPhone production away from China should the US levies a 25 percent import tariff on smartphones, Bloomberg reported.
However, for now, suppliers will keep making iPhones in China at a 10 percent tariff level, people familiar with the matter told Bloomberg.
iPhones -- the majority of which are made by assembly partner Hon Hai Precision Industry Co. in China and shipped around the world -- have so far been spared in a tit-for-tat trade war. But US President Donald Trump told the Wall Street Journal last month that tariffs could be slapped on smartphones and laptops made in China.
A 10-percent tariff could result in an earnings-per-share decline of just $1 for Apple. However, a more severe scenario of a 25 percent tariff -- absorbed by Apple -- could result in an EPS decline of about $2.50, the report said quoting RBC analyst Amit Daryanani as saying in a research report.
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