“Foxconn, a subsidiary of the Hon Hai Precision Industry Company, is being forced to find more efficient means of manufacturing Apple devices if it is to increase profit and increase its annual sales growth forecast, says company chairman Terry Gou,” The Next Web reports.
“Despite Apple’s extraordinary revenues over the past year, Foxconn has found it difficult to increase profit gains due to the fact that Apple devices are ‘very difficult to make,'” TNW reports. “However, the company has worked on making its processes more efficient and will positively begin to impact the company in the second half of this year, moving on into 2011.”
Read more in the full article here.
MacDailyNews Take: Associate yourself with people of good quality, for it is better to be alone than in bad company. – Booker T. Washington
[Attribution: Fortune. Thanks to MacDailyNews Reader “Judge Bork” for the heads up.]
I find it funny that companies whine about not making enough profit and it too hard to make. I guess Foxconn is not about to give up the Apple contract because is too difficult to make. To make more profits they just have find a place with cheaper labour than China. The rumour is they are going to Brazil, but don’t be surprise to see a made in Africa IPad.
There is more to profit than just labour costs. Another factor is yield. The article speaks of difficulty which means yield problems, not labour costs. I’m not sure the reason for Brasil is labour costs or taxes (another factor), or some other reason.
And it’s good for companies to “whine”, it means they care about the bottom line and their long term survival.
I want to upvote you.
Made in Africa . . . Too funny. 😀
OK, let’s see:
Foxconn negotiated contract with Apple that set the price.
Foxconn signed the Agreement with their costs “known”.
Foxconn “gave” their employees a “raise” (after chaos broke out)
Foxconn now says that they aren’t making as much money because the Apple products are “too difficult to make”
Gee, notice that every point begins with Foxconn? MAYBE they should look internally instead of “blaming Apple” for demanding that Apple products meet quality standards (quality is never cheap).
Did you even read the excerpt? Looking internally to find more efficient means of manufacturing is EXACTLY what they are doing. No where are they blaming Apple.
Not surprising at all. The Chinese aren’t interested in quality, just banging out junk at high volume. Apple products are the only commodities made in China that have any quality to them. Intel has learned that for intricate complicated processes that require high quality standards American workers do the best job. intel is bringing their manufacturing back to America and finding out they’re saving money. Apple could learn from their example.
no Made in Africa labels on any products I have ever seen. Ever.
Nothing there but islamization, disease, famine and repressive regimes who rape their own people.
Go to a ‘Gold’ distributer and look at a South African Krugerrand.
Hey, magic doesn’t come easy.
@Andy
Ya Andy I know what you mean. Sounds like America, nothing made here but 1000’s of churches spewing hate, homophobic agenda’s, unemployment at 10%, underemployment at 20%, no health care, cancer and obesity epidemic, 20% living below the poverty level, and skyrocketing rape levels nationally both physically (sex) and financially (taxes) … I see what you mean. Sounds like the pot calling the kettle black. Are you the pot or the kettle? “Pun intended”
Poor Pooh Bearman
Your post is difficult to read what with all the (crocodile) tear stains and pink blood spatters everywhere.
But don’t despair, 2012 is on the way:Another opportunity to vote for B. Hussein 0bama and his progressive agenda. You think you have unemployment now; you think you have rape now. You aint seen nothin’ yet. Unfortunately.
I never voted for Obama. I was suckered by Bush and the other guys that did so much for our country and Iraq. ;). When are we going to wake up. My focus was Andy’s unintelligent generalzation. My commit was to show how stupid his generalization is and how easy you could make the same stupid comment about the USA. We should probably look at our self and our situation before we start judging other nations and there people. We have a few things to work on ourselves.
I am a Canadian, and because I truly love America, I am so sorry to say this, but, you’ve passed the point of no return. It is already too late.
I think in your heart of hearts you already know this but America is sliding irreversibly into oblivion. When you do finally wake up it will be to find that you will actually envy Africa.
Foxconn is simply stating a fact that the products are difficult to make. That’s very true. They aren’t blaming anyone or complaining.
I design and develop products in China. Many factories there would happily sacrifice quality for quantity anytime. This is not the case here. They need to explain their profit margins just like other companies do. Relax!
Yet another reason for Apple to manufacture at least their most profitable, most difficult items in the US. No brainer…
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