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Report: Apple suppliers could move iPhone output from China on higher tariffs

Apple Inc.'s suppliers may consider moving iPhone production out of China if the U.S. decides to impose a 25% tariff on devices, Bloomberg News reported Dec. 12, citing people familiar with the matter.

Sources, however, said suppliers should be able to maintain production in China with a tariff of 10%.

Hon Hai Precision Industry Co. Ltd. and Pegatron Corp. are among hundreds of suppliers currently working on Apple products in China.

According to a recent report, Apple cut production orders for all three of the iPhone models that it unveiled in September, partly due to lower-than-expected demand.