Question

ABC "Nightline" anchor Bill Weir (now CNN) was granted unprecedented access to Foxconn in Shenzhen, one of the Chinese companies Apple uses to manufacture their products. I had shown two shorter versions of Bill Wier’s videos in class. As a reference, you may also want to view Bill Wier’s longer version video for a complete answer. In about 150 to 200 words, please describe and comment on the following questions?

1. Why do you think FOXCONN is so successful in China?

2. Do you think this FOXCONN Shenzhen iPhone model can be replicated in the USA? Can this APPLE/FOXCONN model be replicated in other developing countries?

Answer 1

Foxconn is not considered a chinese company, it is founded by a largest private employer in taiwan. In regard to the success of the company in china, the company has a formula it follows. This formulae includes having massive plants that run with an abundant supply of low labour cost, having clusters of suppliers nearby, free trade and having a satisfied global health in regard to mass market devices. Apart from this, Foxconn has had a significant share of orders to make smart phones and personal computers of some major brands like Apple and Dell. Not just this, but it had been in a constant race with the competitors from other countries and has made manufacturing process cheaper and more efficient.

Considering the relations of foxconn and Apple, the foxconn shenzhen iphone model can be replicated in the USA. Instead it will be wrong if we say that IPhone model can be replicated in the USA as Apple itself has a manufactering company in USA. Although foxconn being the primary assembler of the devices has stated that it has the capability of creating all IPhone model for the USA.

Yes, Apple/Foxconn model can be replicated in other developing countries as well provided that the companies has some political or social control over the country.