I guess this month is a very worst month for Foxconn. Not only they are going to lose the bid to Toshiba NAND business, there are also two important leaks from ex-employees came out today. Just saw the news from Taiwanese online news media. If you are interested, you can try to dig up more.
First leak came out two days ago claiming Foxconn secretly increased the product defective percentage and sold the 'junks' to 3rd party to make hundreds of millions. For example (the defect percentage numbers are not exact. Just an example), Foxconn may have 1% of defect during production of iPhone's IC board. But they will tell Apple the defect is 2%. Apple will bite the lost and pay up that 2%. On the other hand, Foxconn will sell that extra 1% to 3rd party (ie. aftermarket repairs) to make profits. The profits for Foxconn selling iPhone components to others are greater than selling to Apple.
The second leak is Foxconn was hiding numerous lawsuits happened here in the U.S. They are not legally claimed and reported to the 'SEC' of Taiwan, which undercut stockholder's profits and increase components prices to cover up. Here are some screenshots from the list of lawsuits. They are ranging illegal price fixing to employment issues. One of the lawsuit (Judge already ordered Foxconn to pay up over $1 mil) is Foxconn forcing the employee to provide sexual favor to clients. WTH!
These might be the reasons why iPhones are getting more & more expensive
![19366521_10213883252500868_6779448268364115314_n.jpg]( "19366521_10213883252500868_6779448268364115314_n.jpg")
![19397008_10213883253260887_5289707111788960640_n-2.jpg]( "19397008_10213883253260887_5289707111788960640_n-2.jpg")
![19396749_10213883247460742_8077021232554668638_n.jpg]( "19396749_10213883247460742_8077021232554668638_n.jpg")
![19399047_10213883252780875_4323104675694196424_n.jpg]( "19399047_10213883252780875_4323104675694196424_n.jpg")
![19420564_10213883254140909_1071811781639819699_n.jpg]( "19420564_10213883254140909_1071811781639819699_n.jpg")
First leak came out two days ago claiming Foxconn secretly increased the product defective percentage and sold the 'junks' to 3rd party to make hundreds of millions. For example (the defect percentage numbers are not exact. Just an example), Foxconn may have 1% of defect during production of iPhone's IC board. But they will tell Apple the defect is 2%. Apple will bite the lost and pay up that 2%. On the other hand, Foxconn will sell that extra 1% to 3rd party (ie. aftermarket repairs) to make profits. The profits for Foxconn selling iPhone components to others are greater than selling to Apple.
The second leak is Foxconn was hiding numerous lawsuits happened here in the U.S. They are not legally claimed and reported to the 'SEC' of Taiwan, which undercut stockholder's profits and increase components prices to cover up. Here are some screenshots from the list of lawsuits. They are ranging illegal price fixing to employment issues. One of the lawsuit (Judge already ordered Foxconn to pay up over $1 mil) is Foxconn forcing the employee to provide sexual favor to clients. WTH!
These might be the reasons why iPhones are getting more & more expensive
