Foxconn's Huawei Unit Workers Are Cashing Bigger Paychecks Than iPhone Assemblers
Portfolio Pulse from Benzinga Neuro
Foxconn Technology Group has been offering higher wages to its workers at the Huawei Technologies handset production unit than those in iPhone manufacturing. This coincides with the recent launch of new 5G handsets by both Apple Inc and Huawei in China. Despite Apple's efforts to decentralize its supply chain from China and invest heavily in India's production, iPhone 15 prices in China, Japan, and India were higher than many other countries. The shift in consumer demand might have contributed to the wage discrepancy between the Huawei and iPhone production units at Foxconn.
September 19, 2023 | 7:23 am
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Apple's efforts to decentralize its supply chain from China and invest in India's production have not resulted in lower iPhone prices in these markets. The wage discrepancy at Foxconn could impact the cost of iPhone production.
Apple's strategy to decentralize its supply chain from China and invest heavily in India was aimed at reducing production costs and mitigating risks. However, the fact that iPhone prices remain high in these markets suggests that these efforts have not been fully successful. Additionally, the wage discrepancy at Foxconn, a key supplier, could potentially increase the cost of iPhone production, which could negatively impact Apple's margins.
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