Apple and Foxconn, relationship at loggerheads?

The relationship between Apple and its main manufacturer Foxconn is reportedly cracking due to a battle over profit margins. The indiscretion was reported by The Information which cites several sources close to both companies. Apparently, while the profit margins of the Cupertino giant would be close to 40%, those of the Asian multinational would be much lower. For this, Foxconn would have put in place questionable strategies to raise its percentage.

According to the source, Foxconn would regularly report to Apple that it has hired more than the real number of workers; it would use the equipment owned by the Californian giant to make the devices of the competitors and would not completely respect the quality standards in relation to the tests on components and products. Apple would thus have intensified its monitoring activities on employees and equipment located in Foxconn's factories.

It also seems that some Google employees have been allowed to visit the factory that produces the 12-inch MacBook inches before this was announced. Not only. Sources report that some iPhone 7s would have been sent back by Apple because they had assembly defects and Foxconn would have opened, repaired and sent them back as new. A practice hidden from the company led by Tim Cook.

In short, these are the incorrect behaviors that could lead to cracking the relationship between the two companies. Meanwhile, the sources again confirm that Apple is looking to diversify its supply chain by not being dependent on a single supplier. Certainly not new news. A move that would also be dictated by the continuing tensions between the United States and China that could create problems for the American giants. The solution, therefore, would be not to be dependent on either a single supplier or a single country.

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