Apple puts cheap Chinese labour industry under pressure

Derrick

Derrick

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Apple puts Chinese labour industry under pressure

Apparel makers, toy companies and other manufacturers wrestling with rising wages in China now face new pressures after Apple Inc and main production partner Foxconn agreed to improve worker conditions at plants making its iPhones and other gadgets...
 
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Major factories move production to India....
 
Funny how this has never affected any of the other manufacturers who rely on Foxconn:

Acer Inc. (Taiwan)
Amazon.com (United States)
Cisco (United States)
Dell (United States)
Hewlett-Packard (United States)
Intel (United States)
Microsoft (United States)
Motorola Mobility (United States)
Nintendo (Japan)
Nokia (Finland)
Samsung Electronics (South Korea)
Sony (Japan)
Toshiba (Japan)
Vizio (United States)
 
Fudzy said:
Funny how this has never affected any of the other manufacturers who rely on Foxconn:

Acer Inc. (Taiwan)
Amazon.com (United States)
Cisco (United States)
Dell (United States)
Hewlett-Packard (United States)
Intel (United States)
Microsoft (United States)
Motorola Mobility (United States)
Nintendo (Japan)
Nokia (Finland)
Samsung Electronics (South Korea)
Sony (Japan)
Toshiba (Japan)
Vizio (United States)
Click to expand...

I read an article about apple pulling muscle to make working conditions at the iPhone factories better, what is this "how this has never affected any of the other manufacturers", why would apple pay money to improve other companies factories?
 
Fudzy said:
Funny how this has never affected any of the other manufacturers who rely on Foxconn:

Acer Inc. (Taiwan)
Amazon.com (United States)
Cisco (United States)
Dell (United States)
Hewlett-Packard (United States)
Intel (United States)
Microsoft (United States)
Motorola Mobility (United States)
Nintendo (Japan)
Nokia (Finland)
Samsung Electronics (South Korea)
Sony (Japan)
Toshiba (Japan)
Vizio (United States)
Click to expand...

Look at the other companies profit margins and value vs Apple. I don't see them claiming to be one of the most valuable US firms.

See for example:
http://www.bloomberg.com/news/2012-01-24/apple-posts-record-quarterly-profit-sales.html
http://www.bbc.co.uk/news/business-14485114

That is the problem with being on top, if you making so much money and not letting it cypher down people will target you and place you on a different measuring stick to others.
 
There was an interesting article not too long ago citing skills availability, not cost, as the reason Apple manufacture in China. The labour cost in the US didn't bother them, the time-lines to get things done and the availability of skilled (low level engineers, artisans for manufacturing and such) were just too much of an issue in the States. So for Apple to pay slightly higher wages and get massive PR from this as well as then put pressure on the wage rates of their competitors it is really a win.

Do yourself a favour, read this article, it really explains everything.
 
Bern said:
There was an interesting article not too long ago citing skills availability, not cost, as the reason Apple manufacture in China. The labour cost in the US didn't bother them, the time-lines to get things done and the availability of skilled (low level engineers, artisans for manufacturing and such) were just too much of an issue in the States. So for Apple to pay slightly higher wages and get massive PR from this as well as then put pressure on the wage rates of their competitors it is really a win.

Do yourself a favour, read this article, it really explains everything.
Click to expand...

TL;DR

I would think one major factor for the decision to make the things in China is because all the parts are made in China. Smaller lead times, need smaller warehousing = less disruptions = bigger capital in the pocket.
 
Elimentals said:
TL;DR

I would think one major factor for the decision to make the things in China is because all the parts are made in China. Smaller lead times, need smaller warehousing = less disruptions = bigger capital in the pocket.
Click to expand...

If I remember the article they do go in to some detail about that, specifically if design changes are made and the subsequent knock on affect in the logistics chain.

How mind boggling are those numbers on getting engineers available in the time-frames!!
 
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