Chipmaker Qualcomm is suing four Apple suppliersPhoto: Patrick Quinn-Graham, Flickr CC BY 2.0

While many politicians and businesses express concerns about the escalating economic tensions between China and the US, Apple suppliers are particularly vulnerable to the effects of a trade war.

Chipmaker Qualcomm is suing four Apple suppliersPhoto: Patrick Quinn-Graham, Flickr CC BY 2.0

Apple outsources much of its production to manufacturers based in China, with more than 10 of Apple’s largest suppliers listed among China’s top 20 exporters.

Large-scale manufacturers like Foxconn and Pegatron, who both produce iPhones in China, benefit from stable trade between the two countries. Therefore, tariffs imposed on Chinese imports to the US could have damaging financial consequences for Apple’s suppliers and impact the company itself.

Read the full article here