Tuesday, July 06, 2010

IPhone Supply Chain Highlights Rising Costs in China - NYTimes.com

Check the full article for a stark Chinese labor reality check

At the end of June, a manager at Foxconn Technology — one of Apple’s major contract manufacturers — said the company planned to reduce costs by moving hundreds of thousands of workers to other parts of China, including the impoverished Henan Province.

While the labor involved in the final assembly of an iPhone accounts for a small part of the overall cost — about 7 percent by some estimates — analysts say most companies in Apple’s supply chain — the chip makers and battery suppliers and those making plastic moldings and printed circuit boards — depend on Chinese factories to hold down prices. And those factories now seem likely to pass along their cost increases.

IPhone Supply Chain Highlights Rising Costs in China - NYTimes.com

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