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Foxconn Investing $1.1 Billion to Boost iPhone Production Capabilities

Tuesday December 27, 2011 6:49 am PST by Eric Slivka

China Daily reports (via Electronista) that Apple's manufacturing partner Foxconn is investing $1.1 billion to nearly double the size of a recently-opened iPhone manufacturing facility in Zhengzhou, China, banking on continued strong growth of iPhone sales.
The base will be centered on the Foxconn Science Park in Zhengzhou, provincial capital of Henan, increasing its current production lines to 95, said the Henan provincial development and reform commission during a conference.

The expansion plan, costing 7 billion yuan ($1.1 billion), is expected to bring $20 billion in sales revenue in 2012, the commission said.
The facility opened earlier this year and is already employing 130,000 workers and producing 200,000 iPhones per day. If the facility were running at full capacity seven days a week, it would be capable of producing 18 million iPhones per quarter.

A Bloomberg report from last week indicated that the city of Zhengzhou is working to help Foxconn add 100,000 workers to the facility this year, and a production boost in line with that workforce increase could see the factory yielding over 350,000 iPhones per day, or nearly 32 million per quarter.

[ 58 comments ]


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skunk
99 months ago

The main reason iPhones are produced in China is that workers there are willing to work for the wages they get--that's WILLING, NOT forced. The main reason they're NOT made in the US is that workers here are too lazy and greedy and NOT WILLING to work ANYWHERE.

Is that the broadest brush you could find? Maybe you should try a roller.
Rating: 6 Votes
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marine0816
99 months ago

The main reason iPhones are produced in China is that workers there are willing to work for the wages they get--that's WILLING, NOT forced. The main reason they're NOT made in the US is that workers here are too lazy and greedy and NOT WILLING to work ANYWHERE.

Oh, and it's "its" not "it's" in your last sentence.


yeah, lazy Americans won't work for $2 dollars an hour.. Damn we are so LAZY...
Rating: 5 Votes
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krFALCON
99 months ago

Can we stop investing in China???! Come on Apple!


It's not just Apple. It's not uncommon for electronics to be outsourced for cheap labor. It keeps production costs down and in turn, makes it more affordable for customers. I'm not saying it's a good thing, but should they decide to keep the production in-house, prices will likely skyrocket.
Rating: 5 Votes
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Shrink
99 months ago
That's a lot of folks who are employed. A definite plus for the people working there.

I hope some of that $20 billion finds it's way to the workers.
Rating: 4 Votes
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carlgo
99 months ago

Gonna need a lot of phones to supply the need of the recently opened chinese market.

Now all we have to do is figure out how to get the profits repatriated into the US.

And I believe the reason these phones are not made in the US is that they cannot be assembled by automation. They are designed for hand assembly. I have always thought it so odd for mass produced product.


The people are the robots in this case, but there are only minutes of hand labor in a phone. The labor issue is a red herring, despite the postings of the surrogates that magically appear every time the issue comes up.

The savings come from tax dodging, no pesky laws about dumping stuff in the river, no problems with dealing with any human issues. Just give them an order and in time containers full of iPhones appear.
Rating: 3 Votes
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lupado
99 months ago
Can we stop investing in China???! Come on Apple!
Rating: 2 Votes
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Consultant
99 months ago

I hope you realize $2 goes a lot farther in China than it does here. I know it's hard to grasp, but there's this amazing concept called the "exchange rate."


There is also the thing called cost of living, where decent meals can be bought for $1 in China
Rating: 2 Votes
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daxomni
99 months ago

While some iPhones come by airfreight, most come by sea. Sea freight is extremely cheap as the ships that bring them here are as big as a city and they just float here on some crude oil! Very efficient.

Looks like you still forgot to factor in the cost of using the world's most expensive military force to protect several oil production and distribution areas. For starters lets take the last trillion dollars the American taxpayer spent protecting much of the world's oil resources and split that cost among every barrel of conventional oil. Then we'll factor in the cost of tomorrow's tar sands oil and we'll see just how cheap it is to ship everything from six thousand miles away by sea.
Rating: 2 Votes
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*LTD*
99 months ago

Keep production costs down? Apple is one of the most valuable companies in the world because of how much profit they take from each item. Greed is what keeps them and other companies in China. Popularity will sell products. I'll pay and extra $100 for an iPad if they boost our economy and give my unemployed friend a job.


No one will invest in the US just for the sheer hell of it. The US has to show demonstrably competitive advantages, especially in terms of labour costs.

Wanting to keep costs low isn't greed, it's basic to business. Right now, the US isn't competitive in this area. Simple as that.

Speak for your own $100.
Rating: 2 Votes
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Tiger8
99 months ago
This thread is hilarious!
Rating: 2 Votes

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