Foxconn Investing $1.1 Billion to Boost iPhone Production Capabilities

[MacRumors]

China Daily reports (via Electronista) that Apple's manufacturing partner Foxconn is investing $1.1 billion to nearly double the size of a recently-opened iPhone manufacturing facility in Zhengzhou, China, banking on continued strong growth of iPhone sales.

The base will be centered on the Foxconn Science Park in Zhengzhou, provincial capital of Henan, increasing its current production lines to 95, said the Henan provincial development and reform commission during a conference.

The expansion plan, costing 7 billion yuan ($1.1 billion), is expected to bring $20 billion in sales revenue in 2012, the commission said.

The facility opened earlier this year and is already employing 130,000 workers and producing 200,000 iPhones per day. If the facility were running at full capacity seven days a week, it would be capable of producing 18 million iPhones per quarter.

A Bloomberg report from last week indicated that the city of Zhengzhou is working to help Foxconn add 100,000 workers to the facility this year, and a production boost in line with that workforce increase could see the factory yielding over 350,000 iPhones per day, or nearly 32 million per quarter.

Article Link: Foxconn Investing $1.1 Billion to Boost iPhone Production Capabilities

 

[HarryKeogh]

Man, a lot of money to be made in iPhone production.

If I could figure out how to make iPhones out of my garage using stuff I find around the house I'll be rich.

 

[cirus]

There is a small city in that factory...

 

[Shrink]

That's a lot of folks who are employed. A definite plus for the people working there.

I hope some of that $20 billion finds it's way to the workers.

 

[Caharin]

Does that $1.1B include employee life insurance?

... sorry, I couldn't resist. I know, I'm going to hell.

 

[DanielSw]

That's a lot of folks who are employed. A definite plus for the people working there.

I hope some of that $20 billion finds it's way to the workers.

The main reason iPhones are produced in China is that workers there are willing to work for the wages they get--that's WILLING, NOT forced. The main reason they're NOT made in the US is that workers here are too lazy and greedy and NOT WILLING to work ANYWHERE.

Oh, and it's "its" not "it's" in your last sentence.

 

[marine0816]

AWESOME, expanding modern day slave camps so us western people can stand hours in line for a cell phone. YEAH

 

[The 801]

Gonna need a lot of phones to supply the need of the recently opened chinese market.

Now all we have to do is figure out how to get the profits repatriated into the US.

And I believe the reason these phones are not made in the US is that they cannot be assembled by automation. They are designed for hand assembly. I have always thought it so odd for mass produced product.

 

[skunk]

The main reason iPhones are produced in China is that workers there are willing to work for the wages they get--that's WILLING, NOT forced. The main reason they're NOT made in the US is that workers here are too lazy and greedy and NOT WILLING to work ANYWHERE.

Is that the broadest brush you could find? Maybe you should try a roller.

 

[marine0816]

The main reason iPhones are produced in China is that workers there are willing to work for the wages they get--that's WILLING, NOT forced. The main reason they're NOT made in the US is that workers here are too lazy and greedy and NOT WILLING to work ANYWHERE.

Oh, and it's "its" not "it's" in your last sentence.

yeah, lazy Americans won't work for $2 dollars an hour.. Damn we are so LAZY...

 

[lupado]

Can we stop investing in China???! Come on Apple!

 

[marcusj0015]

There is a small city in that factory...

Small? it's smaller than my state capital, and Detroit and Grand Rapids, but nothing else...

 

[marine0816]

Oh, and it's "its" not "it's" in your last sentence.

Maybe you should stay in English class instead of wasting your time here.

 

[krFALCON]

Can we stop investing in China???! Come on Apple!

It's not just Apple. It's not uncommon for electronics to be outsourced for cheap labor. It keeps production costs down and in turn, makes it more affordable for customers. I'm not saying it's a good thing, but should they decide to keep the production in-house, prices will likely skyrocket.

 

[zoetmb]

The main reason iPhones are produced in China is that workers there are willing to work for the wages they get--that's WILLING, NOT forced. The main reason they're NOT made in the US is that workers here are too lazy and greedy and NOT WILLING to work ANYWHERE.

Oh, and it's "its" not "it's" in your last sentence.

Chinese workers are reported to get paid about $130 a month. $130 a month in the U.S. might not even cover your transportation costs to get to and from the factory, even if one used public transportation.

Aside from addicts, the mentally disturbed, the mentally disabled and people who dropped out of grade school, show me the stats that demonstrate that any substantial number of people in the U.S. refuse to work. The reality is that when there are job fairs and the like, thousands of people show up. Even in New York City, when the retailers hire for the Christmas season, I see hundreds to thousands lined up for the privilege of working for minimum wage.

The only jobs that Americans refuse to work are the farm jobs that immigrants were doing. Reports are they show up for a day and never come back. But that's back-breaking work for very little pay.

The main reason they're not made in the U.S. is that companies like Apple refuse to have a U.S. factory that pays even minimum wage as long as less expensive alternatives exist. And because the price of Apple's (or anyone's) products would probably have to triple if they were manufactured here, although to really analyze that, we'd have to know how much of the manufacturing cost is labor. Apple used to manufacture in the U.S. and later in Ireland. There was nothing wrong with either of those operatons - it was simply far less expensive to do it in China.

 

[Consultant]

Can we stop investing in China???! Come on Apple!

Just about everything electronics is made in China due to China's labor price advantage.

Apple does invest in the US. Where do you think the R&D etc is done? Ever heard of the new Apple headquarters with its own power station?

 

[lupado]

It's not just Apple. It's not uncommon for electronics to be outsourced for cheap labor. It keeps production costs down and in turn, makes it more affordable for customers. I'm not saying it's a good thing, but should they decide to keep the production in-house, prices will likely skyrocket.

Keep production costs down? Apple is one of the most valuable companies in the world because of how much profit they take from each item. Greed is what keeps them and other companies in China. Popularity will sell products. I'll pay and extra $100 for an iPad if they boost our economy and give my unemployed friend a job.

 

[Kaibelf]

yeah, lazy Americans won't work for $2 dollars an hour.. Damn we are so LAZY...

I hope you realize $2 goes a lot farther in China than it does here. I know it's hard to grasp, but there's this amazing concept called the "exchange rate."

 

[lupado]

Why don't we pay American prisoners the same as we pay Chinese workers to prevent outsourcing?

 

[Kaibelf]

Keep production costs down? Apple is one of the most valuable companies in the world because of how much profit they take from each item. Greed is what keeps them and other companies in China. Popularity will sell products. I'll pay and extra $100 for an iPad if they boost our economy and give my unemployed friend a job.

That's fine, but don't volunteer away MY $100.

 

[powers74]

The expansion plan, costing 7 billion yuan ($1.1 billion), is expected to bring $20 billion in sales revenue in 2012, the commission said.

because the price of Apple's (or anyone's) products would probably have to triple if they were manufactured here

Septuple, apparently.

 

[Consultant]

I hope you realize $2 goes a lot farther in China than it does here. I know it's hard to grasp, but there's this amazing concept called the "exchange rate."

There is also the thing called cost of living, where decent meals can be bought for $1 in China

 

[thetexan]

I find it funny that politicians blast oil companies who make around a 10% profit while they not only employee a lot of blue collar Americans but pay them exceptionally well while Apple seems to get a free pass making a 25% profit and outsourcing all of their blue collar labor.

 

[skunk]

I hope you realize $2 goes a lot farther in China than it does here. I know it's hard to grasp, but there's this amazing concept called the "exchange rate."

I hope you realise that the post you are quoting was ironic.

 

[carlgo]

Gonna need a lot of phones to supply the need of the recently opened chinese market.

Now all we have to do is figure out how to get the profits repatriated into the US.

And I believe the reason these phones are not made in the US is that they cannot be assembled by automation. They are designed for hand assembly. I have always thought it so odd for mass produced product.

The people are the robots in this case, but there are only minutes of hand labor in a phone. The labor issue is a red herring, despite the postings of the surrogates that magically appear every time the issue comes up.

The savings come from tax dodging, no pesky laws about dumping stuff in the river, no problems with dealing with any human issues. Just give them an order and in time containers full of iPhones appear.