Foxy

Technology giants, during the age in which we live, are household names. You might wash your clothes in a Samsung. You’re perhaps reading this on an LG. I’m typing this right now, on an Apple. It’s not necessarily a new thing, as any brand of facial tissue being referred to as a Kleenex shows us, but unlike with the humble sneeze-catcher, we do now have ferocious brand loyalty. What’s surprising though is the number of technology manufacturers who don’t, in fact, manufacture anything at all. At least, not in their own offices or factories. Here’s a story of a company called Foxconn, and why they’re possibly the largest manufacturer of electronics whom you’ve never of.

Manufacturing things, as one might imagine, is a logistical and financial black hole. Production lines, tooling, materials, shipping - you’re looking at a huge outlay before you’ve even made something to turn around and sell. It’s no surprise then that companies have seen this need, and positioned themselves to take this burden away from organizations wishing to take products to market. They provide the factory, you provide the design. It’s how the majority of electronics are made today. Having started in 1974 and now standing as the global leader in device, component and integrated circuit manufacture, is Foxconn.

Foxconn is a global force in manufacturing. From their headquarters in Taiwan, they’re one of the largest employers in the world, see turnover around $175 billion per year and arguably enable the world of (relatively) affordable technology we live in today. From its factories in China, Japan, Europe and in fact the United States, around 40 percent of all consumer electronics sold today come from Foxconn or one of their subsidiaries. These consumer electronics, unlike the name above the door on the factory when whence they came, will be brands you’ve heard of.

The Apple vs. Android debate? No need, both are manufactured by Foxconn. Sony’s Playstation consoles, Microsoft’s Xbox consoles, Amazon’s Kindle; all coming from the same place. Televisions, computers, servers and all the individual components therein. Just taking the iPhone as an example, Foxconn produces half a million units per day on Apple’s behalf. That’s around 350 per minute. This device alone in fact makes up around 45 percent of their revenue as a whole. It’s a mutually beneficial relationship; Foxconn wins hundreds of millions of dollars, while large tech companies win not having to deal with the pitfalls of their own manufacturing. Being inconspicuous in this way doesn’t free them from controversy however, with some fairly high profile stories hitting the news over the years.

Protests against awful working conditions, lack of fair pay, overreach of surveillance and broken promises of bonuses make even recent headlines. While global news has forced Foxconn to clean up their act, there are clearly issues still remain. The occasional study arises which shows them to be a fair workplace, but the majority find shortfalls. This is the benefit, perhaps, of operating outside of the public eye, rather producing things under someone else’s brand and image. One thing is for certain though, and that’s the fact that our reliance upon technology won’t be shrinking any time soon. The need for affordably manufactured devices is only set to grow, we can only hope it doesn’t continue at the detriment of decency.