5,700 Units of iPhone Worth $1.15 Mln Stolen: Apple to Move Production to US !

Must Read

Windfall! Online Grocery Market In India Looks Set For Purple Patch Ahead

Silver linings are clearly in short supply in the pandemic fuelled world that we have come to...

Apple Store In India: More Of Disappointment Than Excitement?

Apple has started making moves to strengthen its presence in India. With the launch of Apple online...

Can Tata Super App, With the Backing of Walmart, Take On JioMart?

In August, Tata Group, in a move to likely counter the offerings of the Jio umbrella, declared...

Foxconn is the exclusive manufacturer of Apple iPhones, with its factories in Shenzhen, China. As reported by AsiaOne, a former senior manager at Foxconn Taiwan has been indicted for stealing thousands of iPhones. According to the report, the manager is identified by his family name as Tsai, who worked in the testing department. He’s been accused of stealing and selling 5,700 iPhones in China to pocket around $1.56 million.

Reportedly, Tsai instructed eight employees of the factory to smuggle out thousands of iPhone 5 and 5s. These were the testing phones which were supposed to be scrapped, but Tsai and his accomplices sold them to store in Shenzhen for $1.56 million from 2013 to 2014. Foxconn reported this case to Taiwanese authorities. Further, an internal audit was conducted, and Tsai was questioned after his return to the island earlier this year and later released on bail. He has been charged with breach of trust and is facing ten years in jail.

Foxconn’s profit reportedly declined 31% in the second quarter of 2016, apparently, due to Apple iPhone’s poor sales performance same time this year. In that quarter, Foxconn made around $554.5 million, down from around $805 million in Q2 2015.

Advertisements

Foxconn is one of the world’s largest contract manufacturers that assemble products for international brands including Apple and Sony. It has around 1 million workers in its factories across China. However, this is not the first time that Foxconn employees have come under the scanner. Back in 2014, five former Foxconn employees were charged with breach of trust for accepting a bribe of $5 million by suppliers to clear the quality checks and buy equipment. All of them faced the ten years and six months in jail.

Foxconn had been under controversies since a long time for its factories’ working conditions as well. It has been accused of violating labour rights for many years. Allegedly, they keep their employees in overcrowded dormitories. They were made to work for excessive hours without any compensation for the same. In its defence, Foxconn said that they did overtime voluntarily. They are even accused of controlling every aspect of the lives of these workers and interfering in their personal lives as well. In 2013, there was a report of 3 Foxconn employees committed suicide.

Also, in September 2012 and 2013, around 2000 workers started a riot protesting against growing economic pressure and poor working conditions. In May 2011, two Foxconn workers had died, and 16 were injured due to an explosion in one of the manufacturing plants. In January this year, a fire broke out in Foxconn’s main iPhone manufacturing facility in Zhengzhou, China.

For a company of this stature, it is highly embarrassing for Foxconn, over how they treat their employees and workers. In May 2016, Foxconn had reportedly replaced 60,000 factory workers with robots. Laying off this huge number of employees is against the Goodwill of any company.

However, Foxconn is reportedly exploring the feasibility of shifting iPhone production from China to the U.S. Since China has cheaper labour and hardware costs, moving to U.S. will definitely increase production costs of the iPhones. It is estimated that the cost would increase more than double. The new U.S. President-elect Donald Trump, have also offered ‘tax cuts’ and ‘regulation cuts’ to Apple if they move its production to U.S.

Advertisements

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest News

From Credit Card Transactions To Online Shopping: New Charges Applicable From Today

As we step into the month of October, just three months away from 2021, the Indian Government...

Why Is Access Dots Touted As A Must Install App for All Android Smartphone Users

Are you an Android user and missing some of the much-needed security features that iOS 14 users have been enjoying now? You...

₹90 Crore Per Hour: That’s What Mukesh Ambani Added To His Wealth During COVID Era

Today the "IIFL Wealth Hurun India Rich List 2020" was released and guess who kept maintained his position at the top for...

Can Tata Super App, With the Backing of Walmart, Take On JioMart?

In August, Tata Group, in a move to likely counter the offerings of the Jio umbrella, declared that they are in the...

The Raining Discounts Are Coming As Flipkart And Amazon Gears Up For Festive Season Sale

The festival season is about to begin and eCommerce majors in India Amazon and Flipkart are aiming to make the most of...

Amazon, Google And Microsoft Are Extreme Angry With TRAI

The big three of the tech industry - Amazon, Microsoft And Google - seems to be quite annoyed. Cloud...

In-Depth: Dprime

Will ‘TikTok By Microsoft’ Be A Winner?

For the last two years, TikTok has been in the public eye for all sorts of reasons. First, it was the exploded...

Facebook Subscription Model: Looking Beyond Ad Dollars?

Seldom do job listings create a stir this gripping. However, when the job listing in question is a stealth post from Twitter,...

Will The Online Food Delivery Market in India End Up Becoming A Two-Horse Race?

It's pretty much evident that the food delivery space in India is all set to get riled up soon enough as one...

More Articles Like This