A new report from Information today highlights what he calls “Apple’s eroding partnership with Foxconn”. The report details how Foxconn has struggled with low margins despite Apple’s continued growth, and how the manufacturing company has used a “variety of tactics to increase profits.”
One specific example from the story is the 2018 iPad Pro. When Foxconn began production testing of the redesigned iPad Pro, the company told Apple it needed a number of workers to develop the. new product. This was considered “standard procedure” for the relationship between Apple and Foxconn, but Foxconn overstated its tally.
The report explains that Foxconn did not hire as many workers as it told Apple to try to increase its margins:
This was not the first time Foxconn had done this, say many Foxconn employees. The manufacturer has regularly asked Apple for more than necessary employee counts as Foxconn has attempted to generate more profit or gain new business from Apple to increase its razor thin margins.
Besides, here is some interesting information related to the 12 inch MacBook. According to the report, Apple accused Foxconn of giving Google employees “a tour of a factory in China that made the metal frame for the 12-inch MacBook.” Apple asked Foxconn for security footage and visit logs, but Foxconn refused to comply.
Elsewhere, the report says Foxconn used Apple-owned “idle factory equipment” to work with other customers. In fact, radio frequency testing machines bought by Apple were said to have been used by Foxconn to test Huawei smartphones.
Over the past few years, we’ve seen Apple expand its manufacturing outside of China and into India. In fact, iPhones made in India are now exported to European markets, not just sold domestically. Nevertheless, even in India, Apple still works closely with Foxconn.
The full report is worth reading and can be viewed at Information.
FTC: We use automatic income generating affiliate links. More.
Check out 9to5Mac on YouTube for more information on Apple: