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Foxconn Hires 50,000 More Workers as Apple Boosts iPhone 16 Production
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They can probably take a few of Humane's staff. They're quite busy with returns over there.
Humane’s daily returns are outpacing sales
After raising $200 million from investors, Humane has only sold $9 million worth of products and has received $1 million in returned products.
www.theverge.com
That's one factor, but it's actually a secondary factor. By Asian standards, Foxconn's labour costs in China are actually on the high side. Labour is considerably cheaper in places like India and Vietnam, etc.
The even bigger factor at play here is the ability to hire 50000 workers in 2 weeks, with the infrastructure to support that. That second part about the infrastructure is part of the reason why it's been so difficult for companies to start similar factories in places like India, despite the massive population. The supply chain is also key. The majority of the parts and components used are also from China.
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It’s concerning that Apple is only recently addressing this. I hope the news doesn’t come with many defective iPhones.
Absolutely. Converting yuan pay into USD is meaningless, as expenses of Chinese workers are paid in local Chinese currency to Chinese landlords and merchants. Yes, Chinese may earn the amount that converts to $3 / hour in foreign exchange rates, but it's not like a cup of coffee costs anything near an hour's pay (indeed coffee costs a small fraction of the price it does in America, despite both countries important coffee beans from foreign producers).
The cost of living is lower in most countries than in America. Indeed, the cost of most construction projects, infrastructure, etc. is lower even in first world European countries than it is in America. America has a very high cost of living, particularly when you must factor in things like health care costs that are not personal expenses in many other nations.
The one exception is that tarriff-free consumer goods produced internationally ARE substantially cheaper in America. You can buy Japanese, Korean, or Chinese produced electronics in America often for much less money than right outside the factory. (This was even more true before the US went to essentially a national sales tax with the South Dakota vs. Wayfair Supreme Court decision which has essentially increased the price paid for delivered items by ~10%).
The bottom line is the middle class in China has grown by leaps and bounds while it has been shrinking for decades in the US, and the lower class in China has seen even greater gains. So whatever advantage working class Americans may hold over middle class Chinese is rapidly slipping away, if it isn't gone already. Chinese are able to save over 40% of their income, while Americans struggle to save in the double digits. Part of this is cultural--America has simply become a high time preference nation--but mathematically the money just isn't there for Americans to save 40% even if they wanted to. Because the cost of rent + food + transportation + health costs (required spending) leaves very little left for discretionary shopping.
If the last 2-3 years is any indication, the Pro Max and Pro models will sell the most, about 38%, 32% respectively, and the base model about 24%, and the Plus or Mini (if offered) about 6%. This does not include continued production and sales of discounted 1-3 year old base models as price segment leaders. No older discounted Pro models are made for sale, only existing stock or inventory is sold to avoid competing with newest iPhone Pro models.
If Apple/Foxconn is paying these wages, considered high or higher end for assembly work, what do you think Huawei, Xiaomi, Vivo/Oppo/BBK brands and other Android OEM’s are paying THEIR assembly workers? For example, Xiaomi’s Q1 reported earnings and smartphone sales that indicated an Average Sales Price of just $160, average for ~41M sold. With that cheap of a product, how much could they possibly be paying their assembly workers, 10 yuan, if that?
That’s why Foxconn offers perks, salary and bonuses, especially to workers who have had prior experience within the iPhone City assembly plants and are familiar with Foxconn’s systems. They draw plenty of people who are looking for work, understand what they are getting into, and are willing to work the hours offered.
The reality is America only wants to pay the least for their money, proven over and over and over. The iPhone and Apple products ARE good sellers because they offer users privacy, security and performance plus reliability and support, something Apple user appreciate and are willing to pay the premium for.
One would have to look hard to find the non-Chinese made smartphone made in Korea, Vietnam, and India. And then check out where your TV, stereo, coffee maker, washer / dryers are made?
I’m glad I decided to upgrade to the 15 Pro from my 12 Pro. The iPhone 17 Pro seems like the device to have but had I waited for the 16 upgrading would have been a tougher sell. I’m normally on a 2 year upgrade cycle and with Apple Intelligence being available on the 15 Pro I won’t be missing out by not upgrading in the way others might if they are on a regular 15 or a 14 Pro or lower Pro device.
I hope so, I really do.
Because if they release another iPhone 12SSSS I’ll be floored.
I’m ready for an M series iPhone. A iPhone with power comparable to the original M1 MacBook Air.
No more dynamic eyesore, an under the glass finger print sensor or nearly invisible Face ID. ( I’ve seen screen tech that turns the pixels off in order to shoot LiDar and photos.)
There is a long wish list.
But I sadly fear we’re getting an IPhone 15S with more ram and a few more cores under the hood to process AI. ( of which many of us won’t use outside of its novelty…)
A quality of life upgrade.
But hasn’t every iPhone since the X been a “ quality of life upgrade”?
The iPhone X changed the landscape for mobile devices period.
And sadly since it’s been yawn since.
Here’s to hoping Apple blows us away. Cross your fingers people.
Well the Biden admin gave us the Chips and Sciences act*
We’re getting tech jobs brought back to the USA.
Apple is starting to build products here in the country again.
It’s going to be slow going. Let’s hope we become a manufacturing powerhouse again.
THEY GOTTA SELL A HELL OF A LOT MORE IPHONES NOW AND IN THE FUTURE DUE TO POSSIBLY LOSING THE BILLIONS GOOGLE PAYS APPLE TO BE THE SEARCH ENGINE ON ALL IPHONES.
Also note that it's "up to" 25 yuan meaning not everyone is getting paid that. Some people are getting paid less, such as between 19 and 20 yuan
Foxconn’s hourly wages dip below US$3 in China amid Apple supply chain shift
Foxconn was offering workers in China’s southern tech hub 19 to 20 yuan per hour this week, down from as much as 26 yuan last year, as Apple diversifies production away from China.www.scmp.com
Foxconn was offering workers in China’s southern tech hub 19 to 20 yuan per hour this week, down from as much as 26 yuan last year
19 yuan = ~$2.65 USD
20 yuan = ~$2.79 USD
If the iPhone 15 Pro has a starting price of $999 and workers are being paid between $2.65 USD per hour and $3.49 USD per hour, how much would an iPhone 15 Pro be if it were assembled in the U.S. where workers are being paid $20 per hour, there's no forced and mandatory over-time and 6 day work weeks, and under less harsh and abusive working conditions?
“iPhones are made in hell”: 3 months inside China’s iPhone city
Workers describe a peak production season marred by labor protests and Covid-19 chaos, right as Apple reconsiders its China supply chain.restofworld.org
Investigation of an Apple Supplier: Chengdu Foxconn Report in 2023 : China Labor Watch
To this day, Foxconn Chengdu enforces a large number of illegal labor practices including the excessive use of dispatch workers, mandatory overtime, workplace bullying and harassment, and recruitment discrimination.chinalaborwatch.org
Foxconn’s Chengdu factory is one of Apple’s main sourcing sites. Each fall when Apple releases a new line of products, workers labor around the clock to meet impossible production targets. Dispatch workers, or workers who do not directly sign labor contracts with factories but instead are outsourced by labor dispatch companies, make up approximately half of the workforce. The precarious nature of their employment makes them extremely susceptible to abuse. While Apple has gained a reputation for excellent product quality and customer service through its ‘AppleCare’ and ‘Genius Bar’ services, its reputation for labor rights is considerably less stellar. Despite Apple’s claims of having high standards when it comes to corporate social responsibility, year after year, serious labor rights violations occur on the factory floor.
From June to July 2023, CLW sent an investigator to Foxconn’s Chengdu factory to document the working conditions of Apple’s global supply chain. CLW’s investigation discovered that the problems uncovered in 2020 still exist in the factory. To this day, Foxconn Chengdu enforces a large number of illegal labor practices including the excessive use of dispatch workers, mandatory overtime, workplace bullying and harassment, and recruitment discrimination.
And US politicians want to bring back manufacturing jobs. It will just end up with another record inflation… for America. The rest of the world will continue to buy from where the goods are made the cheapest.
It is after tax, and it provides free dorm and very affordable meals ($0.5/meal). If you rent apartment in the city, it only costs $250 for 2B including utilities. They could save most of the wages at the end while many Americans earning $10K/month can’t save anything.
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I'm an American making half that and saving plenty while being in a mid-sized city (I believe anyone making $120K/year and "isn't able to save anything" is more likely just bad at or unwilling to do money management), but I agree with your point in general.
(The main category where local cost-of-living isn't relevant is travel/expatriation.)
It won't. Apple has tons of experience and is really good at quickly ramping iPhone production up and down based on demand.
Production ramps up for new iPhone releases and during Christmas, and then quickly ramps down as when demand isn't as great. Apple has been doing that since iPhones first entered the market.
Apple manufactures/ships/sells roughly 600,000 iPhones per day (on the average), every day of the year.
Most consumers aren't doing yearly upgrades, so for those coming from 12, 13, 14, this may be pretty big for them.