Manufacturer moves its biggest customers orders further north

Foxconn shifts Apple operation

Foxconn is to move its Apple manufacturing operations to another part of China, as it looks to break up its monolithic business model away from a handful of locations in southern China.

According to the Financial Times, Apple has a much closer relationship with Foxconn than any other US company giving it considerable influence over the way the manufacturer operates.

However, Apple is reportedly unhappy about Foxconn’s move to shift higher employment costs on to its clients but a Foxconn executive told the FT that it’s “ready to use some of the new locations” in either Tianjin or central Henan.

Foxconn has long been planning to move to cheaper locations within China, but was unable to do so on the scale that it wanted as Apple – which is estimated to have around 100,000 of Foxconn’s 800,000 workforce working on its products – was reluctant to have its devices built in the newer facilities.

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