Foxconn cuts 50,000 workers early as iPhone struggles

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Which new iPhone is for you? It really comes down to size.
Apple knows the iPhone is getting too expensive.
Photo: Ste Smith/Cult of Mac

Foxconn, Apple’s largest manufacturing partner, has cut 50,000 workers ahead of schedule as a result of weak iPhone demand.

The first cuts came last October, months before Foxconn typically scales back its workforce in preparation for slow season, according to a source familiar with the move. It is believed that Foxconn isn’t the only Apple supplier making cuts, either.

Slowing iPhone sales cause Apple suppliers to suffer

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iphone XS
It’s not just Apple that’s feeling the impact.
Photo: Apple

Slowing iPhone sales aren’t just bad news for Apple.

Foxconn, the company’s largest manufacturing partner, is also suffering as a result of weakening iPhone demand, with revenue for December falling 8.3 percent year-over-year.

It’s the first time Foxconn has experienced a drop in revenue in almost a year.

Foxconn will start building flagship iPhones in India in 2019

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India3
Apple is ramping up its investment in India.
Photo: Ste Smith/Cult of Mac

Apple is expanding iPhone manufacturing in India, including building its flagship handsets, a new report claims. This will supposedly be carried out at a Foxconn plant in the southern state of Tamil Nadu.

To accommodate the new manufacturing lines, Foxconn will invest an additional $356 million to expand the factory. At present, it builds phones for Xiaomi at the plant.

iPhone suppliers could leave China if trade tariff hits 25%

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iphone XS
Apple will look to avoid iPhone import levies above 10%.
Photo: Apple

iPhone suppliers will reportedly consider moving away from China is U.S. trade tariffs hit 25 percent.

Sources say they will remain even if the U.S. introduces a 10 percent tax on smartphones, but they could be forced to “reassess the situation” should the Trump administration impose a higher rate on imported goods.

Top iPhone suppliers give Apple investors good news

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The iPhone XS Max is 25 percent larger than any previous iOS handset. So how is it as an iPad mini replacement?
2018 iPhone sales might be a lot stronger than Apple’s share price would indicate.
Photo: Ed Hardy/Cult of Mac

A pair of companies critical in producing the iPhone enjoyed very strong sales in November. While not definite, this is a clear hint that the recent pessimism about sales of Apple’s handsets is unjustified.

Apple’s share price has dropped about 25 percent in the past couple of months on previous equally vague but negative reports.

Today in Apple history: iPhone factory deaths spark investigation

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Foxconn
Tim Cook visits one of Apple's factories in China.
Photo: Apple

December 11: Today in Apple history: iPhone factory deaths spark investigation December 11, 2013: A Chinese labor rights group calls on Apple to investigate the deaths of several workers at a Shanghai factory run by iPhone manufacturer Pegatron.

Most controversially, one of the dead workers is just 15 years old. The underage worker reportedly succumbed to pneumonia after working extremely long hours on the iPhone 5c production line.

iPhone production could head to Vietnam to avoid U.S. trade tariffs

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iPhone XS box gold
Things don't look good for iPhone in 2019.
Photo: Ste Smith/Cult of Mac

iPhone assembly partner Foxconn is considering the possibility of opening a new facility in Vietnam in an effort to avoid U.S. trade tariffs.

The factory would focus specifically on iPhone production, according to a new report. Vietnam Chamber of Commerce and Industry Vu Tien Loc says talks with Foxconn are underway.

If you think iPhones are expensive now, try making them in USA

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Foxconn
These assembly workers could be American instead of Chinese if we’re willing to pay a lot more for our iPhones.
Photo: Foxconn

There’s a good chance the iPhone and other Apple products will be hit with tariffs in the Trump administration’s trade war with China. The president has repeatedly stated his simple solution: Make the iPhone in the United States.

But an analyst warns that moving assembly of Apple’s handsets to the U.S. would significantly increase their price.

Foxconn must cut spending ahead of ‘very difficult’ 2019

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Foxconn
One of Foxconn's many factories.
Photo: CBS

Apple’s biggest supplier, Foxconn, is having to shed a whole lot of costs. According to an internal company memo, it aims to cut 20 billion yuan ($2.9 billion) from its expenses in 2019.

This is supposedly because it faces, “a very difficult and competitive year” — although it does not expand on exactly what this means.

Foxconn denies US plant will be staffed with Chinese engineers

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Foxconn Wisconsin
Foxconn is moving to the U.S.
Photo: Foxconn

Apple’s top manufacturing partner Foxconn is denying a recent report from the Wall Street Journal that the company is looking to staff its new Wisconsin plant with employees from China.

Foxconn allegedly plans to bring engineers to fill a gap in prospective talent due to a tight labor market, the Journal claims. The plant has already been scaled back in size. Adding Chinese laborers instead of creating American jobs would certainly cause even more controversy.