So I guess Apple is going to send money to all the students that lost wages?
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Apple Suspends Business With iPhone Supplier Pegatron for Labor Violations
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Oh you mean make it here? for 3 times the price and lower quality? I get it
Violations occurred in China, not Taiwan
"Pegatron said the violations took place at its Shanghai and Kunshan campuses in eastern China"
While this article is about Apple doing the right thing I had a feeling there would be some ridiculous post steering blame towards Apple. I have so much trouble respecting people who post such crap. SMH
It’s not a paywall. It’s free to read if you join. However, here is MacRumors’ article quoting them.
Inside Apple’s Eroding Partnership With Foxconn
When Apple’s 2018 iPad Pro was undergoing production trials at the company’s largest outside manufacturer, Foxconn Technology, the Taiwanese firm gave Apple a list of how many workers it needed to develop the new product. That was standard procedure for Foxconn, whose factories across China have ...www.theinformation.com
I don't think you know/understand what "paywall" means.
Right below the article, it says "Join now to read the full story"
I enter my email into the field and click on "Get Started"
I'm then taken to a page where I'm asked to "Choose the plan that's right for you"
When I'm asked to pay (subscribe) to read the article, that's a paywall.
Enjoy paying $4000 for a phone if you want it manufactured in North America. There's a reason we outsource labour.
It's good that they caught up to this before it was made a bigger issue.
'The high cost of low wages'. Anti-suicide nets, and all, and yet people still defend American corporations exploiting third world labor. Sad...
'The high cost of low wages'. Anti-suicide nets, and all, and yet people still defend American corporations exploiting third world labor. Sad...
Labor abuse can happen everywhere. I don’t care where the iPhones are made as long as they’re respecful of working conditions.
Apple is doing the right thing here.
You are correct. I had thought the article was available free at least previously, but perhaps I'm mistaken, as it is definitely behind a paywall now. In any case, it's been quoted all over the net by the tech sites. I provided a link to the MacRumors article.
My point earlier was that Apple keeps whittling away profit margins from these companies (see article), so they have more and more incentive to cut corners. Apple can afford to pay its employees reasonably well, since they keep that 40% gross margin, at the expense of everyone else.
These companies accepted those terms, so I’m not sure why everyone is so upset about this. Manufacturing is a low profit business, there’s low risk and the skill level of the workers is also extremely low, hence low margins. I think some of you really don’t understand different industries and assume all are exactly the same.
I'm just reiterating a simple truth. If you pay razor thin margins, there is a high incentive to cheat.
It doesn't mean it's right, but it's the truth.
1. There was no abuse in this case.
2. There are zero cases in the US nor in Europe nor the whole west. /S
The article is clearer, not clear.
I had to dig through it to understand what's probably going on. Essentially it looks like students wanted to work more or different hours (and on the production line) but that was against rules/regulations/laws. A manager helped them and falsified paperwork. The manager was fired. The students were paid for their time and sent back to their homes.It's a rules violation but not exactly a major issue. That why the probation for the company was minor. Why would you punish an entire company for a handful of rules abuses? They are on probation until they demonstrate it isn't a pervasive issue. If it is, then more severe penalties kick in with loss of orders and production (which would go to Luxshare).
Things are moving the other way. More and more premium brands are moving to countries that provide cheap labor. Take a closer look at where Volvo, MB, BMW, Audi are being made nowadays.
Doh, here is the MacRumors link:
Profit Margin Tensions Souring Relationship Between Apple and Foxconn
The relationship between longtime partners Apple and Foxconn is eroding due to a battle over profit margins, according to a new report from The...
www.macrumors.com
Can get behind this one.
Sometimes maybe it’s not “abuse”, “forced labor”, etc... and sometimes the best solution is not to shut down the job posts completely. When we hear about workers choosing to work for Apple for $5 an hour instead of $4 at another place, yes, might be still underpaid, might still not be perfect, but shutting it down (the equivalent of $0 for that worker) or forcing to choose a lesser paid one from a less regulated place is definitely not the solution.
If I’m a student and want to cash a lot bank I would be a bit upset that now I don’t have the option for doing that.
Your opinion. Mine is they were overworked and or misused, that squarely fits into definition of abuse. Easy on the dramatics and trying to take it out of proportion.
verb
/əˈbyo͞oz/
- 1.
use (something) to bad effect or for a bad purpose; misuse.
"the judge abused his power by imposing the fines"
Similar:
misuse
misapply
misemploy
mishandle
exploit
pervert
take advantage of
Please do some research before posting... yes you were exaggerating for effect, but the reality is a significant, but not huge jump. I for one would be fine to pay a premium to support jobs in the US (why I buy premium priced clothes from American Giant):
From Vox:
"If Apple managed to bring manufacturing jobs to the United States, analysts say that assembling the iPhone here wouldn’t actually make it much more expensive. As Konstantin Kakaes wrote in the MIT Technology Review in 2016, putting together the iPhone in the US from parts made abroad would only cost about $30 to $40 more per phone, a modest increase for a device with a 64 percent profit margin. Even if every part was made in the US, an iPhone would cost about $100 more, Kakaes concluded, assuming raw materials were still purchased on global markets."
From Investopedia:
"According to Tim Cook, the CEO of Apple, the reason to build in China is not because of the lower labor costs. If this were the case, Apple could make its phones in even cheaper locations. The main reason, according to Cook, is the skill required in tooling engineering. He claims that the specific skill set is no longer available in the U.S., but in China the expertise is prevalent."
There is close to 0% chance iPhones have a 64% profit margin. Those numbers are made up and don't factor in development costs. They don't factor in support costs. They don't factor in the costs of building factories in the U.S. and training workers. They don't factor in health insurance and retirement costs for those workers. I could go on and on. Saying the iPhone X only cost Apple $360 to make ignores all the other costs associated with making the products. It's saying an iPhone is no more than a pile of components. That cost is what you get for a phone if someone else does all the engineering, designing, supporting, etc. and you only have to buy the parts (we'll be generous and say they are put together in that cost but there are no warranty, no OS, no apps, no etc.). It's like saying the value of something is no more than the cost of its component elements.
We know roughly how much it costs Apple to make and support iPhones. Apple as a whole has gross margins of around 39% (typically a little lower). This includes services, which have about 50-60% margins. Hardware has margins around 33%. New phones will have lower margins than existing phones, which will almost always have higher margins. This means iPhones have margins somewhere around 33% (gross and not net). If iPhone margins are not somewhere around 33% then Apple would have to have almost no margins on any other products to make their revenue and profit margins work. The safest assumption is therefore that Apple's iPhone margins are around 33% (then factor in taxes, etc. and they drop to low 20s)