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Foxconn isn't going to last long with apple if these were corporate decisions by foxconn (as opposed to rogue managers doing dumb stuff).

Most likely this was done by foxconn/Hon-Hai corporate staff ... maybe the iPhone 7 defects done by rogue managers, that I can see. Yet touring 12" MacBook manufacturing/assembly lines before announcement to Google ... yeah that's corporate ALL-The-Way!
It seems to appear that foxconn may be on it's way out. That's interesting news and wonder how this got outed.
Indeed. Seems that the dozens of staff on both ends have had enough of in-fighting and multiple repeatedly ending meetings (top to bottom). Most probably are fearing jobs after next years holiday season. I saw another report elsewhere that 'your next iphone may be made in India'. For that I say Apple get some suppliers to work in the African continent ... lots of unemployment therein (save for a few west coast countries) and lots of land for large manufacturing plants. Also no issues from trade disputes and fighting over patents etc.

(to anyone that scoffs this idea, just remember back to 2000 when a lot of development jobs left USA and went to India, then the worlds largest textile country ~ still considered to be 3rd world, and look at them now!)

The news of capitalism's death has been premature my friends.
When there is Gold, Silver, Platinum, Palladium, and any other form of Cash/Trade ... capitalism and the greed and warring that follows is always alive. "For the love of Money" O'Jays wasn't written for the pop-charts friends. Philly holla ('73 babies ya know the time).
 
I wonder why Apple just doesn't buy Foxconn or make their own manufacturing planet, that way they don't have to rely on any one. Plus they can profit from manufacturing competitor products like Samsung is profiting from selling screens to iPhones.
 
Foxconn isn't going to last long if it keeps pulling crap like it's doing in Wisconsin. Their promised Gen 10 manufacturing plant got downgraded to a Gen 5, and all they have at the moment is a warehouse. They hired bodies to meet a tax benefit, but the hires were paid to do nothing. Meanwhile area residents have been inconvenienced (lost homes, property, etc.) for construction for this project and roads are a mess. Foxconn had also promised to set up plants elsewhere at least twice and then backed out. Scott Walker and the Republicans in party had a large part in this as well. Fortunately my county declined the offer to let them build.

Foxconn pulled a fast one on Trump.

foxcontrump.jpg
 
Really? So Foxconn didn't willingly enter into contracts with Apple to assemble Apple products for X dollars and also to adhere to certain policies? Can you please reference where and when Apple forced Foxconn to sign single digit profit margin contracts? If Foxconn bid too low it isn't Apple's fault!
you mean Foxconn bid 'too high' (on AirPod Pro's) since that takes away from the profit margin calculations Apple had ;) Lowest bidder always wins - if they can keep up minimum demand and throttle up to 25% increase in case.
 
If you’re operating on single digit margin, obviously you will find ways to survive. Can’t really blame Foxconn completely if Apple keep pressuring them to take shortcuts by keep lowering their margins. Running a factory has a ton of fixed cost, and operating in single digit margins may not be sustainable. I really hope something can be negotiated as this is not good. The souring relationships will only hurt customers with reduced quality of so called premium goods.
 
Next iPhones start at $799 ($829)...no cable included
For the next iPhone, Apple will sell you only the thought of buying a new iPhone, no box or phone will be shipped to save the environment. Apple will recommend customers to use heir existing iPhones.
 
You train people. I don't know what this country has against on the job training.
It is impossible to replicate the factories in China, for now. Over there, all workers live in dormitories within the factory so they can be put to work at moments notice. Remember how Jobs wanted the original iPhone to have glass screen instead of plastic mere weeks prior to launch. Basically Foxconn had to retrofit the iPhones overnight. Also it is common for these factories to be operating 24/7 to fulfill Apple’s volume. You cannot do that even in other emerging markets, let alone the US. This is not just about the skills or training.
 
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I wonder why Apple just doesn't buy Foxconn or make their own manufacturing planet, that way they don't have to rely on any one. Plus they can profit from manufacturing competitor products like Samsung is profiting from selling screens to iPhones.
Having factories put a lot of fixed cost. By outsourcing it, you can have more margins by eliminating the huge fixed costs.
 
It's true but the number is actually good. Just so you know, net profit margin is calculated as net income as a percentage of revenue -- and you can go to the financials directly. The net income for the three months ended in 6/20 was 11,253 mm against revenue of 59,685 mm. So Apple's net margin for the quarter ended 6/20 was 18.85%. This is excellent for the industry as Dell's is about 2.29% and Hewlett Packard is at 4.52% for example.
Yeah but I'm talking about the iPhone specifically, just wondering if that was the case.
 
"While Apple's gross profit margins are close to 40 percent, Foxconn's profit margins are in the single-digit percentage points, leading Foxconn to employ questionable tactics in an effort to grow its profits."

Maybe we should consider Apple's gross profit margins are close to 40 percent because they employ questionable American business practices. Foxconn employs questionable tactics too, but this article seems to miss the elephant in the room. Maybe American greed can be as (or more) destructive than other countries' efforts to compete in a world economy dominated by American capitalism, but you know: 'Merica rules! Apple rules! O'Doyle rules!
Nobody forces you to buy thousand dollar Apple products. Nobody forces you to buy thousand dollar Samsung products. Nobody forces Foxconn to work for Apple.

Capitalism is the best possible system.

There are much less expensive products for you to buy. Do the math on the designer/manufacture profits With the cheap socialist owned companies. Cry us a river over the CCP owned company profits and how they pay their slave employees.

Go ahead.
 
Nobody forces you to buy thousand dollar Apple products. Nobody forces you to buy thousand dollar Samsung products. Nobody forces Foxconn to work for Apple.

Capitalism is the best possible system.

There are much less expensive products for you to buy. Do the math on the designer/manufacture profits With the cheap socialist owned companies. Cry us a river over the CCP owned company profits and how they pay their slave employees.

Go ahead.
Foxconn is Taiwanese company.
 
It's not as easy as it looks. Here is a list of largest contract manufacturers:

CompanyIndustryRevenue
(millions of US $)
Headquarters
JabilElectronics19,100[2]
23px-Flag_of_the_United_States.svg.png
United States
FoxconnElectronics131,800
23px-Flag_of_the_Republic_of_China.svg.png
Taiwan
FlexElectronics23,863[1]
23px-Flag_of_Singapore.svg.png
Singapore

As one can see Foxconn is essentially order of magnitude larger than the next competitor.
True, not as easily said than done. However, I don't think skimming off the top is going to go over very well. I'm guessing Apple knew about this way before the story broke.
 
Apple 40% profit, wow!

Bring manufacturing back to America, you greedy liar pretending to care about USA workers!

Why? These manufacturing jobs are horrible. It’s essentially doing repetitive, boring work for hour after hour, for minimum wage. The engineering jobs are much better.
 
Home? Home where?

Where does that manufacturing infrastructure and labor pool exist in the US? In China that infrastructure was subsidized and developed by the Chinese government investing many billions of $ over many years. As aside, Apple manufactures on the average roughly 200,000 iPhones per day, every day, with that being able to instantly ramp up for new product releases and Christmas holidays.
Well we've had 4 years of making America great again, how long is it supposed to take?
 
Apple’s greed ... every where ... will probably be what will bring about their downfall.
Is for me at least, I used to be the kind of buyer that would buy new when I had no reason to.
Now the bugs and support are awful. Genius bars aren't toooooooo bad but invariably as getting to the store is a hassle it's Apple online that you turn to. MR is really very good, the official Apple support forums, (and make no mistake that whilst they distance themselves on paper from it - it's still definitely them and theirs), the high ranking posters are rude and do nothing but tow the party line.
Then you've got the non-sensical removal of features that just makes using them a hassle.
 
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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.
Apple has no choice except Foxconn. It's like QC. Just look at them and how they manufacture almost all of the 5/7/10 nm chips for most companies. Even Intel and many others have not perfected that.
 
I think it's time apple started making all its products in the USA, use high tech to automate the lines and come back home.

Time to cut China off entirely and use automation to offset production costs.

Huge mistake going there for manufacturing to begin with
 
Maybe Apple should use its size and power for good and take a cut in their own profit margins for the purpose of bringing the manufacturing home.
I of course have no clue how much more an american produced iphone would cost, but even though the 12 pro max (which I will order next Friday) will sell for nearly 1900 dollars in Denmark for the one with most storage, i would not mind paying like 50-100 bucks more. I anyways pay it off over 24 months with no rent or fees. But again I am unsure if 50-100 bucks per device can support production in US.
 
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