Peak Apple: Foxconn contemplating life after Cupertino Foxconn is reportedly planning for an Apple-free future after a massive slump in orders from Cupertino. Apple's favourite production company is moving away from simply building other people's designs and trying to break into a new market with the introduction of a range of flatscreen televisions. However, since their …
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Apple are inherently niche players - they make a small number of high priced devices using a very insular business approach. In the short term, iOS managed to gain a big market share, but in the longer term they will go back down to niche market shares. If Foxconn don't start preparing for this, then other companies are going to pick up the opportunities in the rest of the market.
Apple will continue to make big profits out of selling these niche products with high margins, but their manufacturers with razor thin margins wont - they need big, big volume.
Apple sales for last quarter were actually up. They sold more, cheaper devices, at a lower margin hence the drop in profits. Oddly enough the comentards here abouts have been screaming about how they should sell cheaper devices. You got what you wished for, why are you suprised?
Apple only form about 35% of Foxconn's sales, so even if their sales to Apple fell by the same percentage as Apple's headline profits (unlikely, cheaper devices tend to cost not much less to assemble) then that's less than a 10% reduction due to Apple. Sales must therefore be down across their whole client base.
"The Taiwanese company is responsible for the manufacture of Apple's hardware."
... AND Google, AND Microsoft, AND Dell, AND motorola, AND Sony, AND Nokia, and Many others.
But any time there is a problem at Foxconn (a company not owned by Apple, or Google, or Microsoft, or any of its other clients) the morons of the world make fools of themselves by blaming Apple?
It's time for those people to get themselves a brain cell.
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Agree entirely. And how about the deaths? Yes there were some but the last one, according to the link in the article, was nearly three years ago after a lot of work was done to reduce/stop the deaths. How many times does the same story have to be resurrected?
Get some news for a change, please!
Although I have sympathy for anyone who feels suicide is the way out we need to put it into perspective - thee factories employ hundreds of thousands of people - how does the suicide rate compare to a similar demographic of people in China who do not work for Foxconn.
Or how about the suicide rate of a similar demographic in the US?
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