Apple, Foxconn and Chinese Workers – It’s All About Context

written by John Chow on January 30, 2012

The New York Time recently ran a fascinating article on why Apple builds all its stuff in China. This has brought renewed calls about low wages, child labour, working conditions, employee suicides, buy American, boycott Apple, etc.

My question is, why are they focusing on Apple and Foxconn? Apple is not the only company building their stuff in China and Apple is not Foxconn’s only customer. Last time I checked, pretty much every American tech firm builds their stuff in China. Apple is the target simply because they’re the most successful.

Just how bad are working conditions at Foxconn? The following graphic visualisation by Paul Arnett (based on numbers from Frobes.com) should put things in context.

Disclosure – I am an Apple shareholder. And no, I don’t need Apple to pay out a dividend.

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susana

WHATTTTT? I don't understand, this article TRY TO JUSTIFY A DEATH ¿?... this is unbelieveable!!! it's not about context, it about HUMAN LIVES!!!... what kind of person (person?) is the writter?

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hatfinch 5 pts

I take it you don't use vehicular transport? What's that, you DO? What's the MATTER with you? Don't you realise that cars, buses, trains, planes etc. KILL PEOPLE? You are UNBELIEVABLE! Can't you see this is about HUMAN LIVES? What kind of a person ARE YOU?!?!

SuperDomainscom

The law of large numbers is going to bring Apple stock down soon. I suggest you trim some of your holdings going into the future. Apple is now the number one company in terms of market cap surpassing Exxon. Do you think oil or IPADs have greater value?

There's no doubt that Apple is an amazing company doing an awesome job with innovation, but sooner or later, the stock will come down regardless of whether it is deemed cheap. Maximize the charts and look at RSI and you will see why it will come down when the market takes a breather.

Buy more at lower levels if you love Apple and good luck to all of the Apple workers. They're building amazing products.

Oscar Gonzalez 11 pts

That's funny. :)

My latest conversation: Don't Be This Guy Video #30toSocial

"Do you think oil or iPads have greater value?"

It's not oil versus iPads, it's energy versus personal computing. Apple are leading the way in personal computing whereas Exxon haven't wised up to peak oil yet. The market is right about this one.

at apls452 on twitter 6 pts

As a shareholder, I'm outraged Apple/Foxconn is paying 6K a year when the average is only $4500. I think Laborers should get an IMMEDIATE 25% pay cut. And what's this 8 to a room luxury bullshit? 10 to a room is do-able. These workers have nowhere to go. If they don't like it, there are plenty more who'd love this country club life. $144 MILLION A DAY PROFITS IS a record we can break ! C'mon Cook -- don't be a wuss. There's no union, so go for it, big guy !

devinelines 20 pts

John, thanks for the Infographic perspective on Foxconn. The NY Times is just focusing on Apple, and by extension Foxconn, to stir up more anti-corporate Occupy-style envy. (Not that that will do anything to create jobs here or improve working conditions in China.) If they really wanted to create more U.S. manufacturing jobs, the NY Times and the government would stop hassling companies like Boeing and Gibson Guitars, and approve the Keystone pipeline. But then, that would probably offend the Occupiers, too, who complain about the lack of jobs while hating corporations. Go figure.

devinelines Totally agree Mitch. Lets just let business run and innovate so that we can continue to dominate the world's economy... otherwise someone else is going to eat our lunch.

fas 16 pts

Nice post, Apple fan - John?

hamids9898 7 pts

wow john nice post

Randy Lipnitzky 7 pts

john they are focusing on Apple obviously because they are so well known. Sure there are electronics companies right here in Chicago that make their stuff in China but do think you'll hear anyone mention them. Hell no. They're too small and nobody cares. But when you can pick on Apple, hell then you have a story!

JasonGeiger 5 pts

...so when will "robots" be cheaper than people and we won't need China at all.

John Chow 39 pts moderator

JasonGeiger Foxconn has already started the process of replacing workers with robots.

Tu Michael 19 pts

John ChowJasonGeiger in Vietnam, there's a robot company named Tosy too. do u think robot is a trend in the future?

zeus 9 pts

Tu MichaelJohn ChowJasonGeiger

They use robots to build cars so why not use them for everything else? I actually use to program robots.

Tu MichaelJohn ChowJasonGeiger tu michael tosy too i had heared first time

John ChowJasonGeiger hmm

Kenny Boger 10 pts

More People will become unemployed, however the replacement human workforce with robots will make our life more comfortable

I watched Shark Tank over the weekend, and a valid point was made in reference to all this. Apple still employs 49K employees in the US! And those jobs would be impossible if the manufacturing was taking place in the US. It's time to move on from "manufacturing" jobs to "tech" jobs. Let these developing countries use their skills to help the US develop more high-tech and more sophisticated jobs. It's up to us to adapt to these jobs.

And at the end of the day, it is us that vote with our wallet and decide: "I want this cheaper" so the manufacturer needs to find a cheaper way of building it... we can't complain when they go and do this.

My latest conversation: Day 20 -

mikeyur 6 pts

Oscar GonzalezJohn Chow

I agree. As an example, the iPhone & iPad alone have created thousands of jobs outside of Apple, not to mention the hundreds/thousands inside the company. Think about all the iOS developers that were employed to build new applications over the last few years. Or the entrepreneurial developers who have built solid businesses off of the platform, employing themselves and other devs/designers/support people/accountants/etc.

The job creation from these technologies is far greater than the 'lost' manufacturing jobs.

mikeyur Yup, but many people are just nearsighted and can't see the long term or bigger picture. But more importantly, I think they are just happy with the status quo and don't want to evolve with the times.

My latest conversation: Day 18

Apple, Foxconn and Chinese Workers – It’s All About Context

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