[ad_1]
A new report from Information today it highlights what is called “Apple’s eroded 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.”
A specific example from history relates to the 2018 iPad Pro. When Foxconn began production testing of the redesigned iPad Pro, the company told Apple that it needed a certain number of workers to develop the new product. This was considered “standard procedure” for Apple and Foxconn’s relationship, but Foxconn overstated its count.
The report explains that Foxconn didn’t hire as many workers as it told Apple it needed in an effort to increase its margins:
It was not the first time Foxconn had done this, say numerous Foxconn employees. The manufacturer has routinely asked Apple for a higher-than-required headcount as Foxconn has tried to make more profit or win new lines of business from Apple to increase its thin margins.
Also, here’s a cool tidbit 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 of the 12-inch MacBook.” Apple asked Foxconn for security images and visit logs, but Foxconn refused to comply.
Elsewhere, the report says Foxconn used “idle factory equipment” owned by Apple to work with other customers. In fact, the radio frequency test machines purchased by Apple were used by Foxconn to test Huawei smartphones.
In recent years, we have seen Apple expand its manufacturing outside of China and into India. In fact, iPhones made in India are now being exported to European markets, not just sold domestically. However, even in India, Apple continues to work closely with Foxconn.
The full report is worth reading and can be found at Information.
FTC: We use income generating automobile affiliate links. Plus.
Check out 9to5Mac on YouTube for more news from Apple:
