That's going to vary on location and whether unionized or not. Starting pay in unionized detroit plants is now well under $20/hr to something more reasonable. $20/hr to work an assembly is insane and why those jobs went overseas to start with.
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Foxconn Workers Reportedly Strike over iPhone 5 Quality Control Demands
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That's going to vary on location and whether unionized or not. Starting pay in unionized detroit plants is now well under $20/hr to something more reasonable. $20/hr to work an assembly is insane and why those jobs went overseas to start with.
There are two main holiday periods in China: Spring Festival and Golden Week.
The past week has been Golden Week. It's the traditional week for family outings. During Spring Festival, we go visit our family and spend time with our parents. During Golden Week, we generally go for our annual vacation.
Being asked to work Golden Week would cause a riot anywhere in China. Chinese workers (other than emergency workers) usually aren't asked to work Spring Festival or Golden Week at all. Being asked to do so is pretty much unheard of.
Thanks for letting me know because you know so much about me. The Internet such a funny place.
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I'm gonna vote for Mitt Romney too how's that make your feel?
Stay tuned for what? More things being blown out of proportion because Apple is good click bait?
Oh and developing county let's remember they are manufacturing iPhones seem pretty developed to me.
pay them fairly for overtime...
Make sure you treat them right. God knows they make enough money.
Make sure you treat them right. God knows they make enough money.
I will agree that the material coating used on the black anodized case (I believe that the case material is the same between the white and black model, just the coating is different) is probably a significant problem from the reports that have cropped up on the forum. I haven't had the problems reported, nor was it scratched upon arrival. It is something that Apple is probably already looking at. Your arguments for the problems being caused by the coating are quite valid and very reasonable. Only problem is that we more than likely will never know the complete truth.
Chinese vs. USA Labour Costs?
Whose estimates? I really doubt that figure. I think almost anyone living in a "Western" country would be willing to pay $6 more per iPhone (or iPad) if they were manufactured in the USA.
And as far as "worker abuse," those striking employees could be replaced in a day. Working conditions and pay at Foxconn are considerably better than what the average Chinese worker is used to.
Whose estimates? I really doubt that figure. I think almost anyone living in a "Western" country would be willing to pay $6 more per iPhone (or iPad) if they were manufactured in the USA.
And as far as "worker abuse," those striking employees could be replaced in a day. Working conditions and pay at Foxconn are considerably better than what the average Chinese worker is used to.
ok i was slightly off, the original estimate was $180 but now it is pegged at $207 for the 16GB model:
original estimate of $180.15: http://money.cnn.com/video/technology/2012/09/24/t-ts-iphone-5-teardown.cnnmoney/
Revised estimate: http://www.cnbc.com/id/49086627/Apple_s_199_iPhone_5_Costs_207_to_Make
$649-$207 = $442
$442/$649 = 68% profit margin for the base model 16GB
to increase the memory to 32GB costs apple $10. since the iPhone 5 32GB model sells for $100 more: $749-$217 = $532. $532/$749 = 71%
per iSuppli's article, the 64GB model costs just $238 yet sells for $200 more than the 16GB model and $100 more than the 32GB model. $849-$238 = $611. $611/$849 = 72%
these percentages do not include shipping, marketing, credit card payments, overhead of Apple Stores, etc as these costs are not compared between companies when looking at an individual product's profit margin.
Okay, in the least meme-ish way possible- this is not what Steve would have wanted. Seriously Apple, pay your workers properly and don't use the excuse of price increases... Apple are worth what now?!
This is no way gives the workers an excuse for poor QC. Yes, they're being paid a ridiculously unfair amount but if you take a job, any job, you do it properly.
You might not agree with what this post but IMO it is bang on; pay more, freeze prices (maybe even lower the iPhone prices to what they were before the 5- eg. 16gb), happy workers, up to scratch products (no pun intended), happy customers, top class Apple.
Am I wrong? I don't know, forums are for opinions... right?
This is no way gives the workers an excuse for poor QC. Yes, they're being paid a ridiculously unfair amount but if you take a job, any job, you do it properly.
You might not agree with what this post but IMO it is bang on; pay more, freeze prices (maybe even lower the iPhone prices to what they were before the 5- eg. 16gb), happy workers, up to scratch products (no pun intended), happy customers, top class Apple.
Am I wrong? I don't know, forums are for opinions... right?
Nor does it include R&D expenses, patent licenses, marketing. You can estimate that after all of the overhead costs are considered that the profit margin is closer to 30%. Corporate Tax Rate is 35% (before deductions) and does not include taxes paid in other countries before the profits can be returned to the USA. That is why many multinational companies leave any overseas profit in the country that they were earned as the same companies don't wish to be double taxed on the same profits.
Another way to look at it - If Foxconn (contractor hired by Apple) paid their employees USA pay rate of minimum wage, price pressures on the cost of products in China would increase. So then the pressure on other companies to increase pay for their employees would increase. At that point, there would be pressure to find lower cost manufacturing facilities in other companies. Movement of manufacturing to other countries would then increase the unemployment level in China. A point to think about, Foxconn is reported to pay higher than the Chinese minimum wage in many locations. So Apple is already putting pressure on wages in China.
What I think we are seeing is a reaction to the reports in South Africa of workers striking for higher wages.
Well said and spot-on SatManager! A substantial portion of Apple's (almost) $200B cash position will never again see the light of day in the USA for that very reason. It's also been why Steve and Tim have heavily lobbied for a "foreign profits tax holiday" (for all US companies that also work internationally). That would result in a HUGE influx of money to the US economy.
I believe the USA has the third highest corporate tax rates in the world.
I don't understand why they have so many workers. I thought most of the building process was automated by machines.
Workers are more flexible to make changes in the manufacturing process. Automated assembly machines have to be built for a specific task and it is very difficult to make changes in the assembly process. So the same workers are used to assemble an iPhone 5 and as volume decreases, the same workers and assembly area can be quickly changed over to assemble a different product.
This example only works in countries that have are considered low wage. In the USA more machines are used with fewer workers as the workers are more expensive when compared to the cost of the workers.
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Actually, now the USA has the highest corporate tax rates in the world according to the Wall Street Journal. Japan recently reduced their tax rate and if I remember correctly, the other country was Sweden who also has reduced theirs. While it is considered to be "politically correct" (according to some) to tax companies as much as you can, the taxes are paid by the consumer as part of the cost of the product. The return of the multi-billions (estimate 500 billion) of dollars to the USA would be very significant to the US economy. This money could/would be used to expand facilities, increase employment, increase stock dividends, increase pay and benefits. Different companies would do some or even all of the listed benefits. Add that to simplify the tax structure to eliminate tax deductions with a reduced tax rate, US business would be more productive and competitive overseas.
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And thank you for the complement. I enjoyed your location as I too was located in the middle east for Uncle Sam.
Easy there comrade, it's a drop in the bucket. China has something like 100,000 protests every year.
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And pay twice as much for the already expensive phone.... right.
Meanwhile many folks seem intent on buying Samesung phones that copy Apple's IP and ship all jobs and earnings overseas.
Uh huh. You are implicitly supporting worker abuse. I have an idea--how about YOU go try working in a factory for a while, then get back to us about how bad unions are.
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Actually, estimates are that building them here would add $4-6 per phone, not $300. And yes, I would gladly pay that.
These workers are getting paid $1.50-$2.50 an hour and working 36+ hours of overtime. Federal minimum wage in the US is $7.25 and then 1.5x for any hour working over 40 hrs. Then you'd have to factor in state labor laws, such as CA which counts overtime by both day (8 hrs) and week (40). So you'd be paying workers significantly more. On labor costs alone, I just don't see how the price increase would only be $4-$6? Would the carriers just give larger subsidies for phones under contract? Or Apple charge the same and eat into profit? Stockholders wouldn't be happy with the latter.
wow
It's amazing so many Americans have no damn clue. Sad but the history of oppression is so unknown to Americans they babble on about HR practices, retention, about the nation that ran over its citizens with tanks in Tianamen Square.
HR practices... for heaven's sake.
It's amazing so many Americans have no damn clue. Sad but the history of oppression is so unknown to Americans they babble on about HR practices, retention, about the nation that ran over its citizens with tanks in Tianamen Square.
HR practices... for heaven's sake.
36 hours of over time ?(And i thought my mate had to worry)
Wonder how much sleep they get.
I don't understand why they have so many workers. I thought most of the building process was automated by machines.
The basic milling of cases is automated, I think. Deburring, polishing, etc is often hand done. (That's what caused the explosion last year that killed a couple of workers... all the combustible dust from smoothing off iPad cases.)
As for actual assembly, I read an article that said each iPhone passed through 50 workers from start to finish.
I don't understand why they have so many workers. I thought most of the building process was automated by machines.
No. In China human labour is cheaper than automation. Especially for fine detail work like this.
Indeed! Some people have trouble understanding that Foxconn could very well be China's most progressive manufacturing company. If there was a clearly better, happier option, how exactly would all these global corporations justify it on ethical grounds? Foxconn is arguably as good as it is because it is so scrutinized.
"Well it's bad, but it's the best there is for the prices consumers want to pay." Is the world we live in. They can't just move those factories to one of the other six nations Foxconn operates in. Supply chain doesn't work that way.
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Workers get paid on quota and thats when quality goes to hell.
They constantly slip through product that is materially damaged so
they will not incur a drop in pay.
On top of all that many families depend on the overtime for a larger paycheck.
Along come the bleeding hearts telling them they are exploited and can no longer work those long hours.
Exploited or not the workers would like to know how they are going to feed their families with fewer hours on a lower wage.
Now up to a third of your production may not be payable because of some flaw you cannot detect or correct.
Holiday issues are also damming because if you refuse to work there is a long line of people who will take your job from you. They are not scabs, because no matter how bad you think you have it there are literally tens of thousands who have nothing.
They constantly slip through product that is materially damaged so
they will not incur a drop in pay.
On top of all that many families depend on the overtime for a larger paycheck.
Along come the bleeding hearts telling them they are exploited and can no longer work those long hours.
Exploited or not the workers would like to know how they are going to feed their families with fewer hours on a lower wage.
Now up to a third of your production may not be payable because of some flaw you cannot detect or correct.
Holiday issues are also damming because if you refuse to work there is a long line of people who will take your job from you. They are not scabs, because no matter how bad you think you have it there are literally tens of thousands who have nothing.