Foxconn can move iPhone manufacturing completely out of China if required

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Foxconn still sustained stable revenue growth in the first five months of 2019 despite the volatile market environments, Liu said, adding that his company and clients are studying the possible impacts on their third-quarter revenue performances from the 25% tariffs imposed by the USA on US$200 billion worth of Chinese imports starting May 10.

Foxconn has a big incentive to help Apple since the company is said to be responsible for as much as half of Foxconn's revenue.

Possible locations for the shift in Apple product manufacturing include India and the United States.

Apple's main manufacturing partner said it can shift the production if the trade war between the US and China escalates.

Major iPhone manufacturer, Foxconn, has come out to say that it has enough capacity to move iPhone production completely out of China and still meet US domestic market demands, if necessary. The Taiwanese partner now makes most of the smartphones in the Chinese mainland. But he said the company is capable of moving production lines elsewhere according to customers' needs. Most of this manufacturing occurs in China, where Foxconn operates 12 factories spread across nine cities.

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Beijing is a top producer of Apple's iPhone and iPad.

The comments come as US President Donald Trump has threatened to slap further tariffs on US$300 billion worth of goods from China, where the bulk of Apple's devices are assembled.

Foxconn today said it will utilise its "global distribution" as well as "localised production" to tackle growing uncertainty amid the escalating US-China trade war.

Otherwise, the tech giant could absorb the cost, which would mean its earnings per share would take a hit of six to seven per cent.

China is a key market for Apple - it's the firm's third largest market following the Americas and Europe. It could also hurt consumers, who may have to field increased iPhone prices.

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