Overseas manufacturers earn holiday triple pay to meet Apple's schedule
Workers at Apple's overseas manufacturing partner Pegatron will reportedly work through China's Lunar New Year for triple the pay in order to build new products for iPhone maker.
According to DigiTimes, Pegatron's chairman decided to halt the company's holiday break and will triple employees' salaries during the holidays "in order to meet Apple's schedule." Though the report didn't specify, it was likely referring to China's most important holiday, the weeklong Lunar New Year. The holiday starts on Feb. 2 and ends Feb. 8.
The report also did not indicate what products employees are working to build, but noted that Pegatron recently landed orders for Apple's fifth-generation iPhone 5, with an initial order volume of "at least 10 million units." Apple typically updates its iPhone on an annual schedule, which would suggest the "iPhone 5" will go on sale in June.
Pegatron reportedly first received advance orders for Apple's soon-to-launch CDMA iPhone 4 in early 2010, with an initial volume of 10 million to 12 million units.
Because Apple has been expanding its orders, Pegatron plans to shift some of its iPhone manufacturing duties to its plants in Suzhou, China. Currently, the bulk of the manufacturer's iPhones are built in Shanghai.
Pegatron is confident in its 2011 outlook, thanks largely to secured contracts for the CDMA iPhone and the iPhone 5. The company also reportedly expects to have increased notebook orders from Toshiba and Acer, as well as strong tablet and LCD TV sales.
Another report this week claimed that overseas manufacturers will begin assembling the iPhone 5 in May, in time for a launch this summer. Production of the second-generation iPad is also expected to begin in February, according to China's Commercial Times.
According to DigiTimes, Pegatron's chairman decided to halt the company's holiday break and will triple employees' salaries during the holidays "in order to meet Apple's schedule." Though the report didn't specify, it was likely referring to China's most important holiday, the weeklong Lunar New Year. The holiday starts on Feb. 2 and ends Feb. 8.
The report also did not indicate what products employees are working to build, but noted that Pegatron recently landed orders for Apple's fifth-generation iPhone 5, with an initial order volume of "at least 10 million units." Apple typically updates its iPhone on an annual schedule, which would suggest the "iPhone 5" will go on sale in June.
Pegatron reportedly first received advance orders for Apple's soon-to-launch CDMA iPhone 4 in early 2010, with an initial volume of 10 million to 12 million units.
Because Apple has been expanding its orders, Pegatron plans to shift some of its iPhone manufacturing duties to its plants in Suzhou, China. Currently, the bulk of the manufacturer's iPhones are built in Shanghai.
Pegatron is confident in its 2011 outlook, thanks largely to secured contracts for the CDMA iPhone and the iPhone 5. The company also reportedly expects to have increased notebook orders from Toshiba and Acer, as well as strong tablet and LCD TV sales.
Another report this week claimed that overseas manufacturers will begin assembling the iPhone 5 in May, in time for a launch this summer. Production of the second-generation iPad is also expected to begin in February, according to China's Commercial Times.
Comments
fear not, those irrepressible apple customers will happily pay the premium...
<---guilty
Cool. The employees will now be earning $0.75 per hour instead of $0.25.....
They make less than some and more than others. What is your point? What is their cost of living, their expectations of standard of living, their dependents, housing costs, etc? Just stating their pay rate doesn't mean anything.
How much more would you be willing to pay for your iPhone to provide higher wages in China?
make lowly workers sweat thru New Year's firecrackers!
How much more would you be willing to pay for your iPhone to provide higher wages in China?
Absolutely nothing.
I would, however, be happy to pay more for my device to be made on American soil in an American factory by American workers.
Then again, I must be one of those crazy xenophobic isolationists.
Absolutely nothing.
I would, however, be happy to pay more for my device to be made on American soil in an American factory by American workers.
Then again, I must be one of those crazy xenophobic isolationists.
Ditto.
Why can't Apple do this, it would massively boost Americas economy.
Awesome! Who cares about their silly week long holiday, all that matters is that our consumer needs be met on schedule. Pay them the extra 1.25.
Are you Mr Scrooge!
Apple drive hard bargain-
make lowly workers sweat thru New Year's firecrackers!
Are you sure? Pegatron is the one driving the workers to work on their most important holidays, Lunar New Year, more important then X'mas or New Year.
Ditto.
Why can't Apple do this, it would massively boost Americas economy.
because then their price won't be competitive, when everybody else are building their stuff in China.
just be happy that a US company is leading the latest round of mobile revolution, not some Japanese, Chinese or Finnish company.
Are you Mr Scrooge!
Scrooge - no.
American - yes.
If you haven't noticed we think inwardly and only care about our needs before that of others. And by we i mean the greater percentage of the average American consumer.
And if you scroll back up youll see there's a few others that would agree. The article didn't say it was mandatory for them to work but it didn't say it wasn't either we don't know, but theyre being compensated for it either way. So if it means them being paid more for a week so i can get what i want as scheduled....then let's go. Pay them.
Ditto.
Why can't Apple do this, it would massively boost Americas economy.
And nobody would be able to buy those devices any longer. Yeah great plan.
Ditto.
Why can't Apple do this, it would massively boost Americas economy.
I agree. It's my only complaint against Apple. But I understand the economics of it.
20 years ago the USA had the lowest Corporate tax rates of the industrialized countries. Today, the US has the second highest tax rate. Not because we raised ours, but because they lowered theirs. Germany and Japan have a very expensive workforce but they have managed a lot better than the US in most cases.
I know there are a trillion dollars worth of "loopholes" in the 16,000 pages of the IRS tax code and the reality is the US corporations don't really pay the high tax rate because of said loopholes.
But nevertheless it creates a cumbersome business environment that large corporations like Apple don't experience in places like Singapore, Vietnam, China, etc. The experience a lot of other encumbrances, true, but paying a worker $1-$4/hr., more than makes up for it.
In America the auto-industry (including transplants) are paying about $28/hr., Mexico about $7hr., India about $4/hr. and China about $2/hr. If you were Buick/GM where would you build your next assembly plant? Case in point, GM is the biggest buyer of Viagra....b/c of the "Cadillac" health care GM employees "enjoy!" Absurd!
Also, a basic rule of thumb in America is if you pay someone, say $28/hr., your true out of pocket is usually double their hourly wage. B/c of government taxes, etc., etc.
Oh well!
Does anybody know approximately how many cell phones a worker can assemble in a day?
Depends- black phone or magical, mystical white?
Absolutely nothing.
I would, however, be happy to pay more for my device to be made on American soil in an American factory by American workers.
Then again, I must be one of those crazy xenophobic isolationists.
That is what many people say. But when the chips are down they all run to the discount stores with the cheapest imports. This is what fueled the move to overseas labor. Those who did not move could not compete.
This is the model pioneered by Dell. Everyone else followed out of necessity.