Foxconn is a Chinese factory that manufactures iPhone smartphones. In your opinion, what is the cost of manufacturing one iPhone, which you can buy in Slovenia for at least 649 euros, without any restrictions? How much do you think their employees are paid per hour? 10, maybe 5 euros per hour? Not even close!
It's recent ABC television company got permission to enter one of the Foxconn plants, to take a close look at how Apple composes his precious iPhone smartphones. And how much do you think the employees of this Chinese phone assembly company are paid? Horace Dediu, an analyst and former Nokia manager, came to the following conclusions based on observations and analysis.
The manufacturing of the iPhone takes time 24 hours (from 6 to 8 hours are "devoured" by downloading the software and testing), and the workers behind the assembly line earn somewhere 1.60 euros per hour. Apple/Foxconn labor costs something per unit between 11.50 and 27 euros, which means that the cost for it is only two to five percent of the final price of the iPhone!
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Foxconn responded yes to this finding 75 percent pays its workers from 1.90 euros per hour, which is a competitive price. It goes through the hands of some assembly line workers as many as 6 thousand iPhones per day. All of these 141 steps they could be done by machines, but the production costs would therefore be higher. Of course, this is not the final cost of manufacturing one iPhone, as there are other factors to consider material costs, but it shows that Apple makes a lot of money from them.
