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Profit Margin Tensions Souring Relationship Between Apple and Foxconn
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At this rate you should have a cure for cancer and cold fusion perfected by end of business on Friday.
Yeah because 80% of the iPhones that roll of the production line are defective.
🙄
ummm, you know that Apple is a pioneer in keeping it's factories safe, are environmentally sound and the sub-contractors are paying decent wages and have honest working conditions? No one will say they are perfect, but the world would be better if Apple's standard was the low boundary, not the upper boundary as it is now. If you want to rant, go after the bad actors and bring everyone up, then you can shame apple into improving even more
Always funny when forum posters think they know better than the people that grew Apple into what it is today.
oh, you are the guy who buys off the back of a truck? Honestly, I have never bought an apple product and had a defect in it. In fact the only problem I have ever had, is my wife overused the volume switch in an iPad and it stopped working after three years. Yes I am aware of a few problems over the years with keyboards, but everyone I know who had one loved them and had no problems with them at all. (They did keep their Macs covered when in backpacks and didn't eat anywhere near them either). It would be interesting to hear what the actual defect rate was, to listen to haters it was like a bazillion percent or something - I suspect it was well under 1%
Sometimes *these comments make my sick, Apple is a global company, why the hell should they "bring back" manufacturing home, where's home, it makes more profit outside of the states than in the states itself, as I said, it's a global company, not American.
* Comments saying "Bring back manufacturing....
Thank you! 40% gross margin for a corporation such as Apple is not at all out of line. Looks like many people here are confusing GM with net profit. Two very different animals, especially with the high indirect costs Apple has. Apple is by no means altruistic -- they exist to make a profit and generate wealth for their shareholders, but they are certainly not doing anything unusual for their type of business. Foxconn, on the other hand, has the bulk of their costs in direct labor and materials. Relatively speaking, their indirect expenses -- sales, service, infrastructure, R&D, etc., are much lower.
So you don't think Apple is large enough, powerful enough, and influential enough to cause a paradigm shift?
Subcontractor dishonesty from a company in China. Honestly this type of news breaking is good for everyone because companies will be put under a magnifying glass by the general public. I understand this forum is not representative of the general public. Some of the people who post here seem like cultists.
It saddens me that one company is making +-40% gross profit whilst they use another company that is hardly making much. The fair practice would be that the whole production chain would have similar (not the same but similar) profit margins. Just goes to show what drives the capitalist world where greed and money controls most of it.
I think Foxconn deserves more from Apple especially given the scale they manage things. Without them I think Apple would be screwed.
I think Foxconn deserves more from Apple especially given the scale they manage things. Without them I think Apple would be screwed.
Foxconn is literally the hired help. They and apple have a signed contract and it seems like foxconn is now skimming off the top. Foxconn did not have to enter into a contract with Apple...could have left Apple hanging; let apple find another manufacturing partner.
The same way when taxes go down, you don't give back part of your salary to your employer to keep the same net bottom line.
Suddenly people forgot Foxconn is a Taiwanese company.
Profit margin.. they just took away chargers and headphones..
Next thing will be the literature and booklets it comes with which will be pre-loaded onto the phone to save .00034c on every iPhone.
Next thing will be the literature and booklets it comes with which will be pre-loaded onto the phone to save .00034c on every iPhone.
I believe in Wisconsin but there's tons of controversy regarding this, specifically, not hiring the number of people they quoted initially and they never really got off the ground based on reports. It appeared to be more of a political stunt with certain people benefitting initially and Foxconn receiving huge tax breaks.
I've been in the auto industry my entire career and I can tell you if a supplier pulled any of those stunts, it would result in immediate surrendering of the business, pulling of tools and equipment and lawsuits to follow for violating non-disclosure agreements.
I've seen it happen in two locations where those facilities were shut down in less than 30 days and the business was resourced to competitors. In our business we trust our suppliers and try to maximize our relationships. But we protect our business and intellectual property with contracts and laws.
I've seen it happen in two locations where those facilities were shut down in less than 30 days and the business was resourced to competitors. In our business we trust our suppliers and try to maximize our relationships. But we protect our business and intellectual property with contracts and laws.
Yup lol aka unconscious bias.
And while its a Taiwanese company operation in China, Taiwan and China aren't exactly best buds. There's actually a lot of military tension between the two.