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Foxconn and China Manfacturing

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A great series of articles by TechCrunch about Foxconn and their +1mm manufacturing city in southern China.

Owned by Taiwan's Hon Hai Precision, Foxconn manufactures for major major hardware makers, most notably Apple. The maker of iPhones, iPads, and other apple objects of worship has built a strong manufacturing brand, and commands strong customer loyalty. The major under-pinning of Foxconn's success, however, is cheap labor. With prices and wages rising in China, demographics leading to a shrinking workforce by 2015, and demands of Chinese workers for, "more", Foxconn's future success is by no means assured. Even running at full tilt, their profit margins are 2-5%, little better than a grocery store. 

The author spent a considerable amount of time in Foxconn City in Shenzhen, a rare experience for a journalist. Worth the read if you take an interest in China manufacturing.

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