Apple manufacturer Foxconn is back in the news after acknowledging the death of two of its factory workers in China last week — coming at a time when the company is pushing hard to improve labor conditions and its reputation.
Unsurprisingly for a company with the kind of success Apple has experienced, it is quite adept at driving a hard bargain.
According to a new report, Apple has been trying to maintain its high gross margin at a time of slowing smartphone demand by asking its suppliers to work for less money. Major suppliers Largan Precision, Foxconn and Pegatron Technology have all been affected.
Apple manufacturer Foxconn has been talking about investing in robots for years now, but apparently it’s finally done it — replacing more than half of the employees at one of its factories with machines.
“The Foxconn factory has reduced its employee strength from 110,000 to 50,000, thanks to the introduction of robots,” said a government official, adding that “it has tasted success in reduction of labour costs” and that more companies are now likely to follow suit.