Samsung is shocking

Almeuit

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Not the company

Supplier that they choose to use and even visit and swear to make it better... So how is it not their fault? :what:.

They know what they do and they use them for cheap labor.. Yeah that isn't bad since it isn't directly them right?.. I don't agree.

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dpham00

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Not the company

When you say supplier, you are saying something like a supermarket buying produce and goods from various suppliers. Foxconn isn't an ordinary supplier. They manufacture iPhones strictly according to Apple's spec. Apple itself doesn't manufacture anything on the iPhone. And even Apple itself said that ''Apple is committed to the highest standards of social responsibility across our worldwide supply chain."

http://www.cbsnews.com/news/what-happened-after-the-foxconn-suicides/

http://www.cnet.com/news/riots-suicides-and-other-issues-in-foxconns-iphone-factories/


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dpham00

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Supplier that they choose to use and even visit and swear to make it better... So how is it not their fault? :what:.

They know what they do and they use them for cheap labor.. Yeah that isn't bad since it isn't directly them right?.. I don't agree.

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To the point, the manufacturing cost of the iPhone 5S is $8. Total BOM is around $200. Apple has been squeezing Foxconn. Foxconn's operating margin decreased from 3.7% in 2007to 1.5% in 2012. At the same time, Apple's operating margin rose from 18.7% in 2007 to 39.3% in 2012. So basically Foxconn is getting a measly $8 per iPhone made. Increasing that a few bucks would reduce Apple's profit, but would still allow them to be one of the most profitable companies in the world. And Apple has the power to force Foxconn to increase the salary if they wanted to.

Now, to the OP, I am not saying that other companies don't do the same, just that don't say that Apple is innocent in all this, they aren't. They know what is going on and choose to do the very minimum amount to rectify the situation.

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anon8380037

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When you say supplier, you are saying something like a supermarket buying produce and goods from various suppliers. Foxconn isn't an ordinary supplier. They manufacture iPhones strictly according to Apple's spec. Apple itself doesn't manufacture anything on the iPhone. And even Apple itself said that ''Apple is committed to the highest standards of social responsibility across our worldwide supply chain."

http://www.cbsnews.com/news/what-happened-after-the-foxconn-suicides/

http://www.cnet.com/news/riots-suicides-and-other-issues-in-foxconns-iphone-factories/


dpham00, Android Central Moderator
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To the point, the manufacturing cost of the iPhone 5S is $8. Total BOM is around $200. Apple has been squeezing Foxconn. Foxconn's operating margin decreased from 3.7% in 2007to 1.5% in 2012. At the same time, Apple's operating margin rose from 18.7% in 2007 to 39.3% in 2012. So basically Foxconn is getting a measly $8 per iPhone made. Increasing that a few bucks would reduce Apple's profit, but would still allow them to be one of the most profitable companies in the world. And Apple has the power to force Foxconn to increase the salary if they wanted to.

Now, to the OP, I am not saying that other companies don't do the same, just that don't say that Apple is innocent in all this, they aren't. They know what is going on and choose to do the very minimum amount to rectify the situation.

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That's real bad. Those reports on Foxconn are nearly 1 and 2 years old but it's unlikely things have improved much.
The clothing trade was a benchmark for bad conditions, still is, but this Foxconn is a whole different situation though. I had known of them but didn't know it was like this.
It's bringing slave like labour, deprivation and demeaning cruelty in to the digital age. Foxconn supply more than Apple of course, but Apple's behaviour is truly shameful. It's easy for them to hide behind the Chinese authorities.

There is a huge financial margin to make things so much better for workers, if the Chinese could be trusted.

Is $8 really the bare bones cost of an iPhone? $200 BOM means boxed, delivered?

There is an argument for taking phone manufacturing out of China while they remain unaccountable, if we all stop chasing better technology every year and petition Apple until they lower their margin considerably. Samsung at least are trying to appeal to several different customers.

It seems to be a roller-coaster that can't stop.

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z33dev33l

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Threads like this make me happy that I stick with Nokia. Their morals are one of the best in the smartphone industry.

On topic though, Samsung used to be a good company. Hell, the Behold II was revolutionary. Since then, they've been sad scam artists and deserve only the worst. I have little love for Apple but Samsung makes them look like kittens in comparison and at least they care about their consumers.
 

dpham00

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That's real bad. Those reports on Foxconn are nearly 1 and 2 years old but it's unlikely things have improved much.
The clothing trade was a benchmark for bad conditions, still is, but this Foxconn is a whole different situation though. I had known of them but didn't know it was like this.
It's bringing slave like labour, deprivation and demeaning cruelty in to the digital age. Foxconn supply more than Apple of course, but Apple's behaviour is truly shameful. It's easy for them to hide behind the Chinese authorities.

There is a huge financial margin to make things so much better for workers, if the Chinese could be trusted.

Is $8 really the bare bones cost of an iPhone? $200 BOM means boxed, delivered?

There is an argument for taking phone manufacturing out of China while they remain unaccountable, if we all stop chasing better technology every year and petition Apple until they lower their margin considerably. Samsung at least are trying to appeal to several different customers.

It seems to be a roller-coaster that can't stop.

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Yeah I is sad indeed. And sadly apple conditions are better than other lower tier merchandise.

To answer your question, the $8 is manufacturing cost only. Box material is $7.

bu8etydy.jpg


For reference, the Moto X assembled in America adds about $5 to the manufacturing cost. Note assembled in the USA, but many components still made abroad. Point being though that being more fair to employees in foxconn should not cost that much more. But foxconn feels the competition. If they are too high then apply would go elsewhere. Really though, apple can force them to pay the employees more pretty easily.

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anon8380037

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I agree. Apple could do so much.

So $8 is the labor and manufacturing cost without the materials and internals.
And 32gb is only $10 more than 16gb!

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atishc

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I read the whole Vanity Fair article and it had much more the tone of a hit piece than investigative journalism. How do you write about the Galaxy S series without mentioning the word "Android" once? How do you write about the Apple vs. Samsung trial without mentioning validity of the patents in question and prior art? There could be a great piece of writing about Samsung's questionable corporate practices and ethics, but this was not it, and it is a disservice to the non-tech savvy readers to publish this.

The Great Smartphone War: Apple vs. Samsung | Vanity Fair

This article sheds light on samsung and their business practices.
 

Riley2521

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I read the whole Vanity Fair article and it had much more the tone of a hit piece than investigative journalism. How do you write about the Galaxy S series without mentioning the word "Android" once? How do you write about the Apple vs. Samsung trial without mentioning validity of the patents in question and prior art? There could be a great piece of writing about Samsung's questionable corporate practices and ethics, but this was not it, and it is a disservice to the non-tech savvy readers to publish this.

A disservice. I disagree. It's interesting to know, regardless of position. Was it biased? Absolutely. However, it's no secret Samsung throws it's weight around however it likes.
 

Duncan1982

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Samsung is shocking, article by vanity fair.

Whilst I hold no allegiances to any OEM we have to get with the fact that it's business and yes that means companies can over step the mark and show a disregard for patents.

I say screw patents let's see manufacturers focus on who can implement it the best.

But money to be made and lost in patents.

Business is cut throat and if you were legit and followed the rules to the letter. Then you wouldn't last.

Like for example Apple pays no corporation tax here in the UK nor do Vodafone and I'm dam sure Samsung and the rest don't either. So by that standard whilst smaller independent retailers have to pay the hefty tax bill, because they don't have connections or mates in high places so to speak.

To that point they are all shocking not just Samsung.

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anon5664829

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To be honest I'm just more sick of hypocrisy when I hear people say I won't buy Apple products because they are a patent troll, but no business is clean obviously, World vision shows that.

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z33dev33l

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To be honest I'm just more sick of hypocrisy when I hear people say I won't buy Apple products because they are a patent troll, but no business is clean obviously, World vision shows that.

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Everyone is to some degree or no one would have the legal right to build anything but at least Nokia and Motorola retain some dignity in that regard.
 

Almeuit

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To be honest I'm just more sick of hypocrisy when I hear people say I won't buy Apple products because they are a patent troll, but no business is clean obviously, World vision shows that.

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True but it goes both ways :) .. You tried to make them sound like they were super clean yet we all know they chose that supplier for cheap labor and the CEO has even visited to say they need to make it better for employees. So they fully are aware of what goes on.

Like I said in my first post... Majority of the big companies do something shady or skeptical...

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anon8380037

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We had dial phones, we had brick phones, we had cellphones, we had clam phones, we had dumbphones.
All these had buttons switches and wheels.
Now we have a plate of glass that has to do everything and vastly more than previous phones.
There are only so many swipe gestures and menus you can come up with to navigate a touchscreen device.
Apple had the upper hand because they got there first. But you can't tell everyone else to climb in the window because you patented a door.

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dpham00

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True but it goes both ways :) .. You tried to make them sound like they were super clean yet we all know they chose that supplier for cheap labor and the CEO has even visited to say they need to make it better for employees. So they fully are aware of what goes on.

Like I said in my first post... Majority of the big companies do something shady or skeptical...

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Aside from the cheap labor, apple apple skirting paying a lot of taxes. Completely legal I am sure, but imo they are avoiding paying taxes as much as legally possible.


http://m.us.wsj.com/articles/SB10001424127887324787004578495250424727708?mobile=y


I am not saying that others are innocent, they aren't. Just that Apple does what it can to legally take advantage of tax laws.

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