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Apple iPhone 5 Success Causes Worker Shortage at Foxconn

By - Source: Digitimes | B 34 comments

If there is anything Foxconn currently does not need, it is more tension among its workers.

However, a report suggests that the success of the iPhone 5, as well as an increase in orders from 8 to 10 million units in September to 14 to 16 million units in October will put Foxconn's employees under additional pressure. Apple said that it sold more than 5 million iPhone during its first weekend of the latest model's availability.

According to Digitimes, Foxconn currently employs more than 150,000 workers to assemble Apple's latest smartphone in Zhengzhou, China. To assist Foxconn recruit workers, the local government of Zhengzhou "is also offering employment subsidies", the report stated.

Following a string of suicides last year, Foxconn recently made headlines due to riots at the Taiyuan in the Shanxi Province, which employs about 79,000 people. While Foxconn said that the riots, which have resulted in ten reported deaths so far, were not work related, the additional workload surely does help calm the mood. The riots at Taiyuan involved more than 2,000 workers.

 

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  • 15 Hide
    brickman , September 26, 2012 2:46 PM
    Send all the unassembled iPhones to the customer. Build your own phone :D 
Other Comments
  • 15 Hide
    brickman , September 26, 2012 2:46 PM
    Send all the unassembled iPhones to the customer. Build your own phone :D 
  • 3 Hide
    SoiledBottom , September 26, 2012 3:00 PM
    Foxconn - We need more nets
  • 3 Hide
    SoiledBottom , September 26, 2012 3:03 PM
    One more

    The new improved Foxconn...... now with 50% more nets
  • 5 Hide
    SoiledBottom , September 26, 2012 3:07 PM
    Last one ...promise

    How many suicides does it take to assemble an IPhone ?....with suicide nets or without ?

    Yeah I'm going to hell
  • -3 Hide
    migaltec , September 26, 2012 3:09 PM
    what matter are the result
  • 0 Hide
    memadmax , September 26, 2012 3:14 PM
    Wouldn't have this crap if you had the factory in the US.
  • 4 Hide
    halcyon , September 26, 2012 3:16 PM
    They should be making enough profit to offer the employees more $$$$. Foxconn...you greedy b@$t@rd$.
  • 6 Hide
    alexmx , September 26, 2012 3:23 PM
    memadmaxWouldn't have this crap if you had the factory in the US.


    LOL, I guess that the price would skyrocket up to 1k usd for the cheaper one.
  • 3 Hide
    santiagoanders , September 26, 2012 3:24 PM
    "the additional workload surely does help calm the mood"

    You accidentally a word.
  • -3 Hide
    halcyon , September 26, 2012 3:26 PM
    ALEXMXLOL, I guess that the price would skyrocket up to 1k usd for the cheaper one.

    Oh...that doesn't matter, I'm sure all the overwhelmingly too-rich-to-exist Americans wouldn't mind paying $1K+ for their iPhones...nope, we'd not mind that one bit. Isn't that right?
  • 0 Hide
    tntom , September 26, 2012 3:29 PM
    For all the money I am paying Apple in royalties for my Android you think this would not be a problem.
  • 4 Hide
    kartu , September 26, 2012 3:39 PM
    They were expected to sell 10 million units on the first weekend, sold 5 million.
    Now *somebody* is shameless enough to claim, that it's "success" that can cause shortages and not the riots.

    Wow guys. Impressive marketing skills. I guess "success", "apple" "iphone 5" in the title work, no matter if reality is on the contrary...
  • -3 Hide
    halcyon , September 26, 2012 3:41 PM
    kartuThey were expected to sell 10 million units on the first weekend, sold 5 million.Now *somebody* is shameless enough to claim, that it's "success" that can cause shortages and not the riots.Wow guys. Impressive marketing skills. I guess "success", "apple" "iphone 5" in the title work, no matter if reality is on the contrary...

    Yeah...and?
  • 5 Hide
    southernshark , September 26, 2012 3:42 PM
    Of course Foxconn could easily fix the worker shortage by offering higher salaries. But God Forbid that they make a penny less of each vastly overpriced I product made.
  • 0 Hide
    halcyon , September 26, 2012 4:09 PM
    Quote:
    They should be making enough profit to offer the employees more $$$$. Foxconn...you greedy b@$t@rd$.


    Quote:
    Of course Foxconn could easily fix the worker shortage by offering higher salaries. But God Forbid that they make a penny less of each vastly overpriced I product made.


    Great minds think alike.
  • 5 Hide
    bombebomb , September 26, 2012 4:27 PM
    brickmanSend all the unassembled iPhones to the customer. Build your own phone

    Would never work, that would require common sense.
  • 5 Hide
    vegaclaw , September 26, 2012 4:45 PM
    Foxconn's margin is nothing compared to what Apple is getting. They, like most of the Asian CM's, make just 2-3% net margin on big orders like Apple's. Foxconn doesn't really have a choice if they want the business. Apple's kind of stuck with Foxconn as well since it is the only company that can support the mass quantity and the timing required by Apple. Personally, I don't think it's anyone's fault. It's just how the game is played. A few lives for a $600 phone... well, people have died for much less. Apple or Foxconn have never force anyone to buy their products.
  • 0 Hide
    freggo , September 26, 2012 4:48 PM
    "Foxconn currently employs more than 150,000 workers to assemble Apple's latest smartphone"

    Even if American workers are more productive (are they quicker in putting Screw #1 into hole #1 ?) that is a lot of exported jobs !
  • 0 Hide
    freggo , September 26, 2012 4:51 PM
    Does anyone know how long it takes the workers at the various stages to assemble a phone?
    I mean even if it takes 1 hour to put the few parts together this should not add more than $10 to the phone's cost.
  • 2 Hide
    house70 , September 26, 2012 4:54 PM
    vegaclawFoxconn's margin is nothing compared to what Apple is getting. They, like most of the Asian CM's, make just 2-3% net margin on big orders like Apple's. Foxconn doesn't really have a choice if they want the business. Apple's kind of stuck with Foxconn as well since it is the only company that can support the mass quantity and the timing required by Apple. Personally, I don't think it's anyone's fault. It's just how the game is played. A few lives for a $600 phone... well, people have died for much less. Apple or Foxconn have never force anyone to buy their products.

    I agree, except where you say it's nobody's fault. If Apple would let Foxconn have a slightly higher profit/unit produced (even at the "huge" expense of getting a couple bucks less profit per unit sold), on the condition that the extra money goes to the actual workers, there would be no issue. But, because Apple behaves like a greedy bastard, you got this.
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