The report cites a senior executive from Foxconn suggesting the company has enough capacity to make all the USA iPhones to be made out of China. The Taiwanese contract manufacturer now makes most of the smartphones in the Chinese mainland.
Apple's iPhones are the most valuable parts of its business, dwarfing revenue from that of its MacBooks and iPads.
Apple's iPhone could escape Donald Trump's escalating trade war with China.
Hon Hai, better known as Foxconn, is a key manufacturing partner to Apple.
He also emphasized that Foxconn's investment in Wisconsin was more important than before given the trade war.
Most iPhones are now produced in China, but Foxconn semiconductor division chief Young Liu apparently told investors Tuesday that 25% of its production capacity is outside the mainland - enough to satisfy the U.S. market. "We have enough capacity to meet Apple's demand".
Apple shares were up more than 1 per cent to US$194.99 in NY on Tuesday.
However, Apple hasn't requested such a transfer of production capacity from China to other markets, he said, albeit Hon Hai is ready to "respond swiftly" if needed.
The U.S. market accounts for one in every four iPhones sold worldwide, "so it represents a huge portion of Foxconn's manufacturing business inside China", Strategy Analytics analyst Neil Mawston said.
"25pc of our production capacity is outside of China, and we have enough capacity to meet Apple's demand in the United States market", Foxconn director, Liu Young-way, said at a company investor day.
Foxconn could shift some overseas work back to China to compensate.
Liu was speaking at Foxconn's first investor conference in Taipei, where the company also said it was well positioned to tackle the "increasingly tough" trade war situation with its production lines across 16 countries.
On Tuesday, Liu also sought to address investors' concerns on what the overhaul might mean for plans initially laid out by Gou, including a $10 billion investment to create 13,000 jobs in the US state of Wisconsin. But that project has since come under criticism for low-paying jobs, sudden dismissals and ever-changing goals.
Liu said the Wisconsin investment, which is expected to reach $1.4-1.5 billion with up to 2,000 employees by end of 2020, was on schedule.