Foxconn’s Fear Factory.

Wednesday, January 25, 2012 11:51
Posted in category From the Factory Floor

A great clip from Jon Stewart on Foxconn, and a timely one given Apple’s recent revelations that its supply chain is still a clusterfu*k, Apple makes over a billion USD a day in profit, and in one of the last meetings with President Obama Steve jobs made it clear that Apple’s outsourced supply chain would not be returning to the US.  EVER.

Personally, as I said in my first post on Apple more than 4 years ago, I am still a believer the having a supply chain that includes many suppliers who Chinese labor or environmental regulations, while trying to build out the Chinese market is a massive risk for Apple.. and a risk I think they are slowing coming around to.  Only question is whether or not it will be in time…

More on that later, but for now enjoy the clip.

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2 Responses to “Foxconn’s Fear Factory.”

  1. Renaud says:

    January 25th, 2012 at 7:54 pm

    I read that Apple’s leaders have not decided what to do with the $100 billion they have in cash. Investors grilled them on this subject, so they “hinted that Apple may invest in its supply chain or in acquisitions”. I’d be surprised if they really did something big/radical with their supply chain. 

  2. Rich says:

    January 25th, 2012 at 8:52 pm

    I heard a simliar rumor from someone who knows someone who knows someone, and I cannot imagine how they would be able to execute anything big. Perhaps buying up and consolidating suppliers that have a certain process/ product, but to buy their lines from Foxconn (or Wintek even) would be impossible.

    In my view, were there to be any consideration, it would be purely economic. Either to capture a big gain, or to capture a process that maintains their competitive advantage.

    What I would personally find interesting would be if they were to spend a small percentage of that money to bring their suppliers up to a global level in terms of environmental and social compliance. Invest in their suppliers, and in turn invest in their brand. until 3 years ago, Asia was considered “other income” for Apple… now it is #2… need to protect that.

    R

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