Analyst: Apple is subsidizing pay hikes at Foxconn
0. phoneArena 03 Sep 2012, 13:26 posted on
An analyst with Berenberg Bank says that with gross margins up at Foxconn and down at Apple, it would appear that Apple is subsidizing the recent pay hikes at the contract manufacturer; Foxconn recently sent out letters asking for better terms from customers after pay hikes as high as 100%...
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1. TheLibertine (Posts: 484; Member since: 15 Jan 2012)
Well, that's a great thing to hear. Apple directors, auctioneers already have so much money they could swim in it. Use it for something useful, for somebody who does really need it. Money is the source of most evil, but in a world where money rules it can also be a positive force.
2. jroc74 (Posts: 6004; Member since: 30 Dec 2010)
I agree. Apple gets so much negative press these days....its good to hear something positive about Apple for a change.
3. networkdood (Posts: 6330; Member since: 31 Mar 2010)
Samsung had a clean audit and apple did not...wow 284 violations. Apple should pay these employees something, or just buy Foxconn.
4. xoutrageousx (Posts: 70; Member since: 22 Dec 2011)
clean? wasn't there an article of samsung hiring under age people to work....?
5. downphoenix (Posts: 3165; Member since: 19 Jun 2010)
They weren't under the age of 16 though, which is a legal age to work in China. Its looked down upon by countries where these types of jobs usually start at the age of 18, but culturally its acceptable for 16 to work in factories in China.
That said, its good to hear that as far as the wages, Apple has picked up some of the slack to ensure the workers are treated a little better. Perhaps its not enough, but it is something.
10. Astreo (Posts: 102; Member since: 05 May 2011)
That wasnt an audit of apple. it was of the foxconn facility. learn to read ?
15. remixfa (Posts: 14255; Member since: 19 Dec 2008)
the foxconn facility was purpose built to be an apple only production facility under close supervision and contract stipulations by Apple. They are well aware of what goes on there.
You dont think one of the most secretive public companies on the planet has no idea what goes on in its production plants do you?? are you that naive?
13. joey_sfb (Posts: 5573; Member since: 29 Mar 2012)
Agree, still every bit of good counts. Many people is trying to make ends meet and i should hail the person or group that make this possible.
6. Apple-Royally- (Posts: 16; Member since: 24 Aug 2012)
Finally a good news, and making progress on Foxconn and there
employees, and working conditions....
7. dnyalexander (Posts: 10; Member since: 03 Sep 2012)
You have to be stupid to believe this, this is no a fact. An idiot analyst is suggesting that this might be a possibility, because apple drop its profit?. it's profit are down because they selling of iphones have dropped since the phone feels outdated.
8. remixfa (Posts: 14255; Member since: 19 Dec 2008)
I wouldnt call it "subsidizing" Apple is paying the workers regardless through their contracts with foxconn.
What is interesting is that IF Apple is giving Foxconn extra money for its workers (a good first step), Foxconn is definitely taking off the top and not giving it all to the workers since their "profit margins are rising" at the same time.
Look, Apple's margins are slowly coming down to everyone else's margins since they have to pay their slave labor more than a bowl of ramen noodles a day. Hopefully this is actually an improvement and not more PR nonsense.
9. crysiswarmonger (Posts: 78; Member since: 06 Feb 2012)
If this is true it would be amazing. I have yet to see any corporation give $ to anyone if they did not have to. Minimum wages were made to keep corporations conspiring (collusion) to lower the wages so low no one can live on them. Corporations find all kinds of ways to lower the wages or benefits. Like sourcing to a country say CHINA where they have few laws or regulations for companies spewing toxic crap out and have millions of people needing work. So giving them some extra cash might be a part of it, they were not making a living wage to begin with.
11. tmcr7 (Posts: 180; Member since: 02 Nov 2011)
"Apple probably is subsidizing recently instituted pay hikes at the factories." Wow look! Apple is PROBABLY paying its Chinese slaves.
12. rallyguy (Posts: 620; Member since: 13 Mar 2012)
"expenditures which zoomed from $440 million in the December quarter to $2.1 billion in the second quarter of this year."
I don't buy it. I think I read the employees are getting an extra $50 a month? There is no way it costs 1.7 billion dollars to give 20k people a raise. If you divide 1.7 billion by 50 it equals 34 million.
It's obvious Apple is spending it in other areas. The author should use some common sense and stop being so biased.
14. dragonite99 (unregistered)
this analyst and the apple insider(source) are both paid by apple to make this s##t up to redeem the respect that they have lost after what they did to samsung.......
whatever they do, they are not going to gain mine...... no apple products for me