Apple's Product Refreshes Help Boost Foxconn's Profit to Record $3.2 Billion
The success of the iPhone 5 and new iPad models in 2012 not only raised Apple’s profits to record levels, but seems to have also helped manufacturer Foxconn to reach an all-time high of $3.2 billion profit (equivalent to $3.9 trillion New Taiwan dollars) during the year. Foxconn, which is the trade name for Hon Hai Precision Industry Co., assembles many of Apple’s products in Chinese manufacturing plants for those of you who didn’t already know.
While Apple also works with other manufacturing firms such as Pegatron and is also in the process of moving some manufacturing capability back to the United States, the majority of Apple’s products are built in Foxconn plants. The manufacturer even announced that it will be adding 5,000 new jobs, which is the company’s largest hiring surge of its kind in recent years. Workers will be heading into several branches including automated production, e-commerce, and robots.
Despite the success both companies seem to be having, Apple’s partnership with Foxconn has placed the Cupertino California company under fire from critics who believe wages are too low and conditions are too unsafe at Chinese manufacturing plants. In response to the critics, Apple has placed pressure on Foxconn to improve working conditions. The manufacturer is said to have recently instituted a number of “wide-ranging reforms” including reducing workers’ hours and significantly boosting wages as a result.