Notebookcheck

Foxconn accused of using shady tactics to boost profits relating to Apple contracts

Foxconn has apparently been undermining its relationship with Apple to boost profits. (Image source: Apple & Steve Jurvetson)
Foxconn has apparently been undermining its relationship with Apple to boost profits. (Image source: Apple & Steve Jurvetson)
Apple and Foxconn may have been partners for years but the relationship has soured in the last few years, according to a report published by The Information. Reputedly, Foxconn has employed a range of tactics to maximise profits, including overcharging for production costs and even potentially revealing Apple designs to third-parties before they have been announced.

Apple may be reporting recording profits but its main partner, Foxconn, has not. According to The Information, the relationship has been eroding for some time, with Foxconn resorting to increasingly questionable tactics to boost its revenues. Citing information from more than two dozen ex-employees, The Information makes several allegations about how Foxconn has acted in the last few years.

Specifically, Foxconn apparently overcharged Apple for staffing costs when producing the iPad Pro in 2018. Supposedly, Foxconn billed Apple for workers that it had not used, exaggerating the volume of workers that it needed. Additionally, The Information asserts that Foxconn uses Apple's 'idle factory equipment' to produce and test smartphones for competitors, such as Huawei. Reputedly, Foxconn offered Google employees a tour of the production line of the 12-inch MacBook before Apple had announced it. Apple then requested security footage and logs to determine who had seen the production line, but Foxconn refused to provide them.

Foxconn has also cut costs in quality control, according to The Information's report, while tensions also arose over an apparent miscommunication over the production of the AirPods Pro. Nonetheless, Apple still uses Foxconn to produce the lion share of its iPhones. In July, Foxconn was said to be investing US$1 billion on an iPhone production plant in India, so it seems that Foxconn remains committed to Apple even if profits are low.

Read all 3 comments / answer
static version load dynamic
Loading Comments
Comment on this article
Please share our article, every link counts!
> Notebook / Laptop Reviews and News > News > News Archive > Newsarchive 2020 10 > Foxconn accused of using shady tactics to boost profits relating to Apple contracts
Alex Alderson, 2020-10-28 (Update: 2020-10-29)
Alex Alderson
Alex Alderson - News Editor - @aldersonaj
Prior to writing and translating for Notebookcheck, I worked for various companies including Apple and Neowin. I have a BA in International History and Politics from the University of Leeds, which I have since converted to a Law Degree. Happy to chat on Twitter or Notebookchat.