Following pressure from Trump’s tariffs, one of Apple’s key suppliers, Luxshare, is in talks to shift its production outside China and even bring some manufacturing capacity to the US. Luxshare is responsible for making high-end iPhones, AirPods, Apple Watches, and even Apple Vision Pro.
According to Reuters, its chairwoman told analysts during a call that “the tariffs would have little impact on profits and revenue, as Luxshare exported only a small amount of finished products to the United States.” But, as Wang Laichun said, Luxshare is considering shelving some investment plans in China and focusing on another market. “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 U.S. market,” said the chairwoman.
However, to start investing in the United States or elsewhere, Laichun needs to weigh some “long-term development and safety considerations.” After all, manufacturing Apple devices is challenging, and Cupertino has had a hard time manufacturing in the US.
During Trump’s first term, the company started producing the Mac Pro in the US, but it wasn’t easy. If Luxshare brings some of its production to the US, there will be several new layers of complexity depending on the product, such as high-end iPhone models and Apple Vision Pro.
With a report highlighting that TSMC started manufacturing Apple Watch chips in the US, it could be only natural that Luxshare could join the party by making Apple Watches in America as well.
That said, Luxshare could start with easier-to-make products, such as the Apple Watch SE. For example, TSMC’s factory in the US has Apple as one of its clients, but it’s not making the latest chips there.
At the end of the day, it all depends on how the tariffs will play out and how the White House will respond to reciprocate tariffs from other economies. BGR will keep following the matter.
