Apple wants to increase iPhone 6 Plus yields, rumored to raise its payments to Foxconn by 20%

Apple wants to increase iPhone 6 Plus yields, rumored to raise its payments to Foxconn by 20%
Apple's iPhone 6 and 6 Plus models are still selling like there's no tomorrow and the company is having a hard time balancing out supply and demand. As CEO Tim Cook said, the company is not even close to having a balance between the two, though, he trusts that with Apple's guidance the suppliers will pull through.

It's not once or twice that we've heard about Foxconn hiring more and more staff, trying to keep up with probably the most successful iPhone launch to date. Specifically, there seems to be an issue with the larger iPhone 6 Plus units, and the company has been trying to shift production around, in order to raise the yield of iPhablets.

Apple has not announced which of the two models is more successful. Obviously – there are more units of the iPhone 6 sold, but this could most easily be attributed to the fact that there are much more 4.7" units produced than there are 5.5" ones. It seems, though, that pre-orders for the Plus have boomed, especially since the phone's release in China, where phablets are a favored trend, since we are hearing about Apple attempting to boost the Plus' yield time and time again.

A rumor now suggests that, in order to stimulate production rates, Cupertinians will be raising their payment to Foxconn Electronics by 20%-25%. Estimates show that the supplier makes a $20 profit for each iPhone 6 Plus, so this raise will bring it up to $25 – just an interesting point. The rumor claims that the raise will not last forever, as Apple will close its wallet and bring payments back to normal when supply and demand even out.

Last we heard about the troubles with the iPhone 6 Plus – leaksters claimed that there is a problem with the 5.5" screen production yield, as Apple's new, complex in-cell technology is harder to apply to larger screens, the output rate of the 5.5" glass panels is only 50%-60%, which is reported as the main culprit for the iPhone 6 Plus' low supply rate. This rumor emerged a little over a month ago, so, if there is any truth to it, either Apple figured out a way to offset the faults in the production, or it is dealing with the problem the old-fashioned way – by throwing money at it.



source: DigiTimes via BGR

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12 Comments

1. darkvadervip

Posts: 366; Member since: Dec 08, 2010

I would do the same!

2. amiaq

Posts: 509; Member since: Jun 30, 2012

I would have thought Apple will reduce the legal age to work at Foxconn by 20% instead. Ohh.. how I was so very wrong.

8. tacarat

Posts: 852; Member since: Apr 22, 2013

I have some kids I'd ship off if they did.

3. NexusX

Posts: 613; Member since: May 16, 2013

where are the apple haters? they should change this site's name to applebashingarena.com

4. Taters

Posts: 6474; Member since: Jan 28, 2013

How about they give the money to consumers instead by like, you know being more reasonable with their pricing...... Although Apple should reduce their prices by 50 percent or more to reflect the true quality of the product, 20 percent cost reduction for consumers would put them somewhat in line with their competitors.

5. kenobi

Posts: 35; Member since: Apr 30, 2013

if you want the price to be reasonable, that would mean a higher price, up to the point where the demand meet the supply.

6. Napalm_3nema

Posts: 2236; Member since: Jun 14, 2013

You are using reason and sound economic theory with a troll who is incapable of understanding either. You will never get that minute of your life back.

7. darkkjedii

Posts: 30833; Member since: Feb 05, 2011

Post of the day honors are yours. +1

11. Taters

Posts: 6474; Member since: Jan 28, 2013

Lol please. Do you actually think Apple charging 3 or 4 times the cost and never having any decent discount at all is reasonable? So say if I took a piece of s**t and charged you $500 for it....it would reasonable as long as there is demand and it sold millions? Please. I know Kenobi and you would say it is reasonable but you guys are idiots.

12. kenobi

Posts: 35; Member since: Apr 30, 2013

We're not idiots. We're humans. Welcome to Earth.

9. tacarat

Posts: 852; Member since: Apr 22, 2013

Their pricing is reasonable. Apple types who get the newest phones would never want a "cheap" phone. The pricing gives a certain air of... others can't afford this.

10. tacarat

Posts: 852; Member since: Apr 22, 2013

Now that Apple will pay more, how much of a wage hike will the factory workers get? Probably zilch.

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