Foxconn Profit Rises 41% on Strong iPhone Sales, Low-Cost iPhone to Drive Similar Gains at Pegatron

[RobertMartens]

Why?

because it wold be funny and put everyone in their place!

 

[ThomasJL]

They pay so little that lots of workers would rather stand in line for these jobs, versus all the other things they could do.

So why haven't you started a company that pays more? Don't want to, or don't know how? That's the problem: everybody who thinks these workers should be paid more is too lazy, selfish or stupid to do anything about it themselves.

Several Foxconn employees were committing suicide a few years ago due to their work conditions. One doesn't need to know how start a company in order to recognize injustice and speak about it.

The employees in Apple's corporate offices have good working conditions, get paid fairly and reasonably, all while Apple makes billions in net profits. Foxconn makes more than enough in net profits to do the same for its employees, but immense greed at the top prevents it.

 

[gnasher729]

Several Foxconn employees were committing suicide a few years ago due to their work conditions. One doesn't need to know how start a company in order to recognize injustice and speak about it.

The employees in Apple's corporate offices have good working conditions, get paid fairly and reasonably, all while Apple makes billions in net profits. Foxconn makes more than enough in net profits to do the same for its employees, but immense greed at the top prevents it.

About 40,000 Americans commit suicide every year. Foxconn has about 1.2 million employees; statistically, about 200 out of every 1.2 million Americans commit suicide every year. Anyone looking at the real number concludes that Foxconn employees must be an exceedingly happy bunch compared to the average US citizen.

By the way, what evidence do you have that any suicides at Foxconn happened due to working conditions? You didn't just make up that claim, so you must have some source for it?

 

[r3m1]

About 40,000 Americans commit suicide every year. Foxconn has about 1.2 million employees; statistically, about 200 out of every 1.2 million Americans commit suicide every year. Anyone looking at the real number concludes that Foxconn employees must be an exceedingly happy bunch compared to the average US citizen.

Lies. Damned Lies and Statistics

 

[tripleg]

"Sources now claim that Gou declared at a function on May 16 that simply catching up to Taiwanese wages is not enough, and that monthly salaries for workers in China should be doubled to 4,400 yuan (US$690) by the end of 2013. If the claim proves to be true, this would be Foxconn’s fourth announced salary hike in China in the last two years. It would also represent a near five-fold salary increase for the company’s 1 million workers on the mainland since 2010."

Meaning that the current monthly salary is equivalent to $345 and that in 2010 it was $138. Wow, how very thoughtful of them.

 

[winston1236]

Profits are what's left after paying employees. That 41% bump is in profits. I wouldn't be surprised if workers' rates don't go up one penny. Maybe they'll give the workers a nice Foxconn coffee mug. That's what happens in the good old USA

It sure is, the corporatist here have a firm hold on pay for employees.

 

[firewood]

It sure is, the corporatist here have a firm hold on pay for employees.

They have no hold at all. If you start a company down the street that offers better pay, benefits and working conditions, all these Foxconn employees will leave for your company as soon as they find out. So why don't/can't you? Too greedy or selfish yourself?

 

[kenetic]

Any bonus or pay raise for the workers?

 

[Boris-VTR]

Surely this increase in profit will trickle down to the employee level in the forms of monetary raises, bonuses, better living environments... Right?

Af course....not They did NOTHING (acorrding to tie-and-suit-exec). All work was done by exec (Ive and Mansifeld single handily did everything), so they should and will get raises, bonuses, extra stocks, prostitues ) ).

 

[Mavelous]

Foxconn?

Imagine their profits BEFORE their massive outlay for suicide netting......

 

[TWSS37]

Why? That doesn't happen in the US? Executives in US earn the bonuses, golden parachutes, stock options.
Gap between execs and workers widening at historic, obscene and immoral rates.

Established companies with higher than anticipated revenues can and do give back to the employees in a variety of ways. I've been getting company results based bonuses for years. Why shouldn't these people?

 

[absurdamerica]

Solid comment, thanks.

In the short term, I see lack of growth due to:
1) Mature iPhone/iPod market and a rapidly maturing iPad market.
2) Dying PC market.

However, in the long term I see some potentially large new vectors for growth:
1) iPhone 5C to sell at a lower price point. This can bring in the masses in developing economies and any market where unsubsidized phone pricing is the norm.
2) AppleTV app store to open up iOS gaming and video media on the big screen. This could switch it from a hobby to competing with consoles and set top boxes.
3) iWatch, iTV, iHovercraft, or whatever the next entirely new product line is that will disrupt yet another industry.

You seem to be a thoughtful person; I'm curious, where do you think the growth is going in the long term?

I want iHoverboard personally.

The biggest deal here is number 1 on your list. The iPhone is simply Apple's bread and butter and what changed them from being a niche player to a huge deal in the personal computing space. Yes, iPod was the name in music players, but that's a wholly different ballgame than something with a proper OS and a lot more sophistication.

If they price the 5C properly and roll out into the rest of China they stand to make up substantial ground.

 

[gnasher729]

Imagine their profits BEFORE their massive outlay for suicide netting......

Here's what you need to understand: When people jump from roofs to kill themselves (which Americans don't do, they use guns), putting up nets helps. There is no doubt about it.

The problem with putting up nets is that you admit there are suicides, and that all the lunatics on the internet use it forever to put blame on you. So while putting up suicide nets is an excellent way of saving lives, it's very bad for the reputation of your company.

I can only commend Foxconn for doing the right thing to save lives, without regard for the impression that this makes on the easily led. By the way, the town of San Francisco is still refusing to do anything about jumpers at the Golden Gate bridge, which has so far cost about 1,200 lives. Apparently it is too expensive. Maybe the mayor of San Francisco should ask Foxconn for help to show him how it is done.

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Meaning that the current monthly salary is equivalent to $345 and that in 2010 it was $138. Wow, how very thoughtful of them.

Posted in a thread where people are complaining that Foxconn makes more profits, while workers don't get paid more, the information that payment has gone up massively and is going to go up further seems quite relevant, doesn't it?

So people are complaining that wages don't increase, and when I show they did increase, massively, and will be increasing more, you complain that they were lower before the increase?

 

[tripleg]

So people are complaining that wages don't increase, and when I show they did increase, massively, and will be increasing more, you complain that they were lower before the increase?

Not really a comment on the % increase but on the pathetic value to begin with.