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Tim Cook reaffirms Apple’s commitment to China amid U.S.-China trade tensions

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Apple CEO Tim Cook pledged to increase the company’s investment in China during a meeting with China’s Industry Minister Li Lecheng in Beijing on Wednesday, signaling Apple’s intent to strengthen its presence in its most crucial manufacturing hub despite rising geopolitical tensions.

According to an official Chinese summary, Cook said Apple would continue to invest in China, though details of the scale or focus of the investment were not disclosed. The move comes as many U.S. firms tread cautiously between Beijing and Washington, with U.S. President Donald Trump pushing for domestic manufacturing and imposing tariffs that have strained global supply chains.

Apple has so far avoided the direct fallout of the trade war, unlike other tech firms such as Nvidia and Qualcomm, which have faced regulatory challenges in China. Still, the iPhone maker must balance its relationships carefully — reassuring Washington of its “American Manufacturing Program,” while maintaining ties with Chinese suppliers that produce the bulk of its devices.

Earlier this week, Apple COO Sabih Khan visited Lens Technology, a longtime Chinese supplier of iPhone glass components, while Cook toured Apple’s Shanghai store and met with local developers and designers. Apple’s sales in China rose 0.6% year-on-year in the third quarter, aided by strong demand for the iPhone 17 series, making it the only top-three smartphone brand in the country to post growth.

China’s industry minister expressed optimism that Apple would “continue to explore the Chinese market and grow together with Chinese suppliers,” emphasizing Beijing’s intent to sustain a favorable environment for foreign businesses.

Foxconn Posts Record Q2 Revenue Driven by AI Demand but Warns on Geopolitical and Currency Risks

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Taiwan’s Foxconn, the world’s largest contract electronics manufacturer and Apple’s main iPhone assembler, reported record revenue for the second quarter, boosted by strong demand for artificial intelligence (AI) related products. However, the company also flagged potential headwinds from geopolitical tensions and currency fluctuations.

Key Points:

  • Revenue Performance:
    Foxconn’s Q2 revenue rose 15.82% year-on-year to T$1.797 trillion (Taiwan dollars), surpassing analyst expectations (LSEG SmartEstimate: T$1.7896 trillion). June alone saw revenue climb 10.09% year-on-year to a record T$540.237 billion.

  • Drivers of Growth:

    • The surge in demand for AI-related cloud and networking products, including components for Nvidia’s AI chips, was a major growth driver.

    • Revenue from smart consumer electronics, including iPhones, was flat year-on-year, impacted by adverse exchange rate movements.

  • Outlook and Risks:
    Foxconn expects continued growth in the current quarter compared to previous quarters and last year but remains cautious about risks posed by evolving global political situations and foreign exchange volatility.
    The company did not provide specific numerical forecasts.

  • Geopolitical Context:
    The announcement comes amid heightened U.S. tariffs and trade tensions, with U.S. President Trump recently notifying 12 countries about potential tariff levels on their exports to the U.S., potentially affecting global supply chains.

  • Operational Footprint:
    Foxconn operates the world’s largest iPhone manufacturing facility in Zhengzhou, China.

  • Stock Market Impact:
    Despite last year’s strong 76% stock rally outperforming the Taiwan market, Foxconn’s shares have fallen 12.5% so far this year amid broader tech sector volatility influenced by trade policy concerns. The stock fell 1.83% on Friday ahead of the earnings announcement.

  • Next Steps:
    Full Q2 earnings will be released on August 14.