×

Announcing: Slashdot Deals - Explore geek apps, games, gadgets and more. (what is this?)

Thank you!

We are sorry to see you leave - Beta is different and we value the time you took to try it out. Before you decide to go, please take a look at some value-adds for Beta and learn more about it. Thank you for reading Slashdot, and for making the site better!

Foxconn Building Factories In Indonesia

samzenpus posted about 10 months ago | from the taking-the-show-on-the-road dept.

Businesses 75

jfruh writes "Chinese electronics manufacturing giant Foxconn is building factories in Indonesia, and upon hearing the news you might be tempted to think the company is simply moving into labor markets where it can find cheaper employees. But in fact, the Indonesian factories will specifically produce smartphones and computers for Indonesians; the country has almost as many people as the United States, but smartphone penetration there remains low."

Sorry! There are no comments related to the filter you selected.

Penetration (-1)

Anonymous Coward | about 10 months ago | (#46209381)

He said "penetration"

The interesting thing about Beta (0, Offtopic)

Anonymous Coward | about 10 months ago | (#46209449)

The interesting thing about this is that when using Beta, the default view is to show everything. So, if you are using Beta, these trollish anti-beta things are perfectly visible, while if you are on Classic they just get filtered out with the rest of the trolls. So, if you really like Classic and hate Beta, the best thing you can do is try to post an anti-beta, pro-classic threat to leave the site as first post instead of Frosty Piss or whatever. That way, if any advertisers to who Dice is trying to market its new shiny actually check out the site, they will see the user dissatisfaction with the design immediately. Then, in subsequent threads we can go on having our usual geeky conversations in Classic.

Isn't that Ironic? (1, Offtopic)

rmdingler (1955220) | about 10 months ago | (#46209541)

So you have to use the Beta to condemn it.

And, if contrary to popular belief, familiarity breeds a lack of contempt....

Insidious.

No, its the point (-1)

Anonymous Coward | about 10 months ago | (#46209571)

I think the point of the anti-beta picketing was to highlight how fundamentally broken beta's conversation system (note: not *comment* system) is. GP is a perfect example. He can troll beta quite easily by hijacking an early thread, but Classic does not even notice the troll.

Re:The interesting thing about Beta (-1, Offtopic)

tripleevenfall (1990004) | about 10 months ago | (#46209545)

DICE stooges will be by soon to pour hot grits down your underwear.

beta feedback (1)

Fluffy the Destroyer (3459643) | about 10 months ago | (#46209809)

like it or not, beta is here to stay...I'm pretty sure of that. Best you could do is adapt to change like a good /.'er.

Re:beta feedback (1)

Opportunist (166417) | about 10 months ago | (#46209847)

I am, I am.

And I'll even inform you when I found a replacement if you want me to. Adapting to change doesn't necessarily mean accepting it. It can as well mean simply replacing it with something better.

Re:beta feedback (0)

Anonymous Coward | about 10 months ago | (#46210625)

Yes please.

with suicide booths outside? (-1)

Anonymous Coward | about 10 months ago | (#46209417)

with suicide booths outside?

Chinese? (2)

eos3fan (1309791) | about 10 months ago | (#46209431)

funny - Foxconn is reported as being Taiwanese, not Chinese... hello??

Re:Chinese? (0)

dreamchaser (49529) | about 10 months ago | (#46209527)

You do know that the official name of Taiwan is 'The Republic of China' and that it's mostly comprised of ethnic Chinese, right? Apparently not...

Re:Chinese? (0)

Anonymous Coward | about 10 months ago | (#46209611)

While it's the "official name" your post is akin to calling S.Korea, Korea.

Re:Chinese? (0)

Anonymous Coward | about 10 months ago | (#46209647)

Is fine. South Korea plain Korea.

North Korea is Best Korea!

Re:Chinese? (2)

dreamchaser (49529) | about 10 months ago | (#46209651)

By your logic then it is incorrect to call the People's Republic of China "China."

Re:Chinese? (1)

ebno-10db (1459097) | about 10 months ago | (#46210051)

Yes it is. Even Tricky Dick the Commie Hunter accepted 40+ years ago that the nationalists had lost the revolution. Saying that Taiwan is China is as absurd as when the CCP says that Taiwan is a renegade province. In other news, the British government has accepted that the renegade American colonies aren't coming back.

Re:Chinese? (1)

ebno-10db (1459097) | about 10 months ago | (#46210207)

Oops, need more coffee. Thought GP said "correct" instead of "incorrect".

Re:Chinese? (2)

parkinglot777 (2563877) | about 10 months ago | (#46209903)

Technically, you are correct. However, you should ask those who come from Taiwan (or even those who live in Taiwan) -- Are you Taiwanese or Chinese? You would be surprised by their answers that Taiwanese != Chinese (so it could be used to imply Taiwan != China).

Re:Chinese? (1)

mjwx (966435) | about 10 months ago | (#46213971)

You do know that the official name of Taiwan is 'The Republic of China' and that it's mostly comprised of ethnic Chinese, right? Apparently not...

And (_)is/(_)isn't considered a province of China, depending on who you ask.

Re:Chinese? (1)

cheesybagel (670288) | about 10 months ago | (#46210881)

Foxconn was started in Taiwan by an ethnic Chinese [wikipedia.org] . However most of their factories are presently located in mainland China.

Re:Chinese? (0)

Anonymous Coward | about 10 months ago | (#46213087)

Depends on where you are from. If you are from Taiwan and any ally of Taiwan, then, yeah, it's Taiwanese. If you are from China, then, no, it's China

Are you certain? (1)

rmdingler (1955220) | about 10 months ago | (#46209459)

This list [wikipedia.org] seems to indicate comparable penetration with other Asian countries.

Can we be sure it's not about the low wages?

Re:Are you certain? (0)

Anonymous Coward | about 10 months ago | (#46209575)

I think that it's undoubtedly also about low wages. But the link you provided is to the number of mobile phones in Indonesia, not smart phones.

Smartphone market penetration doubled from 12% in 2012 to 24% in 2013 in Indonesia. These statistics would indicate that it is probably to do with market penetration too.

http://www.emarketer.com/Article/Smartphone-Penetration-Doubles-Indonesia/1010102

Re:Are you certain? (1)

baka_toroi (1194359) | about 10 months ago | (#46209593)

Well, mobile phone != smartphone
They could have millions of Nokia 1100 for all we know (with that data).

Re:Are you certain? (1)

Hal_Porter (817932) | about 10 months ago | (#46209953)

It's probably because of low wages too. I remember when I was in Malaysia I was with someone who dropped off some wages for Indonesians working in a Malaysia factory. Now I worked out the hourly rate and when I went back to Taiwan I mentioned it to people who know about things and they were surprised it was lower than someone doing the same job in China.

So a lot of Taiwanese companies like Foxconn are adopting a "China+1" strategy for manufacturing, i.e. factories in China plus one other lower wage country in Asia. Indonesia seems like a good bet for this.

Actually another thing that's interesting is that in places like Indonesia most people have a phone. Smartphone penetration is lower but it is growing fast

http://www.emarketer.com/Artic... [emarketer.com]

From 12% to 24% in one year. 84% of people have a mobile phone though.

Also if you look here

http://mashable.com/2013/08/27... [mashable.com]

There are a lot places with more smartphones per capita than the US (56%). And a lot of them are in Asia - Hong Kong(62%), South Korea(73%), Singapore(71%) being the obvious ones. So the odds are that most Indonesians will buy a smartphone sooner or later. Importing stuff in Asia is a nightmare because of duties and bureaucracy. So one way around that is to make things in country instead of importing them. Foxconn are a contract manufacturer so they make things for other people's brands. It may well be that those brands think that manufacturing in Indonesia is a good bet because of a mix of low costs and the fact that getting a "Made in Indonesia" stamp on the device means they can avoid import duty on the devices they sell there. Also most likely they can get some assistance from the government given that they're building a factory which can employee a lot of people.

Another thing is that Indonesia may have its issues but it is probably easier to get your profits back from Indonesia to Taiwan. I've talked to people in Taiwan who've pointed out that doing that from China is non trivial. The Chinese RMB for example isn't convertible but the Indonesian Rupiah is.

Politics (0)

Anonymous Coward | about 10 months ago | (#46209469)

but smartphone penetration there remains low.

Read: Indonesia has some lows that make it almost impossible to have cell phone made outside Indonesia.

There are... other countries? (-1)

Anonymous Coward | about 10 months ago | (#46209479)

Beside U.S.A.??????
Shock!

Re:There are... other countries? (1)

Opportunist (166417) | about 10 months ago | (#46209851)

Sure. Where do you think all the stuff you buy is built?

Re:There are... other countries? (0)

Anonymous Coward | about 10 months ago | (#46210099)

Sure. Where do you think all the stuff you buy is built?

In the cloud.

Good for them (0)

Anonymous Coward | about 10 months ago | (#46209505)

Hey, good for Indonesia. It's a developing country and all new businesses will help to improve the wellbeing over there.

Re:Good for them (2, Insightful)

Anonymous Coward | about 10 months ago | (#46209635)

Yes good for them. But eventually, as Chinese wages increase, more work WILL be moved to Indonesia - I don't buy the bullshit that they just built the factory for the Indonesian market only. You will see them start to build phones and computes for other markets and the factory will be used as leverage to suppress wages in China. That's how it happened here in the US.

It's great that more and more of the World is advancing and it will lead us the road to an advanced planet. Wonderful.

But it's going to cause a lot of more pain in the Western World and in the US.

In general, our wages and standard of living of declined in the last couple of decades - even the educated (like software developers) are feeling the pain. And we are going to have to make adjustments.

Sure we can get a computer and cell phone relatively cheap but, medical care, college costs, food, and even energy (gasoline/oil is still creeping up even this oil boom in the States) are continuing their ever increase march upward. Industries that need the Middle Class worker are needing less and less people because of efficiencies and automation and what people they do need, they're off-shoring.

New industries need hardly any people compared to the old days. Google has only 30,000 thousand employees whereas in the old days, a company that size would have needed 300,000 or more. Now consider that all the other big companies these days are doing the same: employee wise, IBM is a shadow of its former self. And there are not enough small companies and start-ups to take up the slack.

And I'm seeing more and more displaced middle-aged workers using their retirement savings to start small businesses to create their own job and many are failing. 4 out of 5 businesses fail.

The Middle Class is disappearing and we need to start to make changes - disrupt the status quo - or we'll lose everything.

There are billions of more people in the World who in poverty and business will be able to find cheaper labor in other countries for quite a few more decades.

Solution for the US? 1950s income tax rates and strengthen the unions: try to bring back the institutions and policies we had during our boom times.

Re:Good for them (4, Insightful)

ebno-10db (1459097) | about 10 months ago | (#46209737)

Solution for the US? 1950s income tax rates and strengthen the unions: try to bring back the institutions and policies we had during our boom times.

In today's political climate, suggesting such things without mentioning their lineage would get you called a "socialist" (by people who say that's bad even though they have no idea what it means), with a possible implication of being a communist.

By that logic, McCarthy missed the big fish. He talked about communists in the state department, but missed that the White House itself was occupied by a communist - Comrade Eisenhower. Talk about us being a bunch of communist dupes! The fellow who we considered an icon of moderation and middle class values was himself a commie.

Re:Good for them (1)

Opportunist (166417) | about 10 months ago | (#46209859)

And it was so obvious! I mean, Eisen means iron in German, and Stahl (as in Stalin) means steel. And where did the two countries they represented meet only a few years before?

The truth is out there!

Re:Good for them (1)

ebno-10db (1459097) | about 10 months ago | (#46209981)

Maybe McCarthy was a commie too. It's a great tactic to distract attention from the big fish by going after the small fry. Damn those commies are clever.

Re: Good for them (1)

kenh (9056) | about 10 months ago | (#46210287)

Solution for the US? 1950s income tax rates and strengthen the unions: try to bring back the institutions and policies we had during our boom times.

Of course, The booming economy of the '50s was because of higher tax rates and strong private-sector unions... It had nothing to do with the massive increases in production capacity & capabilities as a result of the recently ended war effort, right?

Ignoring unions, please explain how government taking a larger portion of everyone's income 'grows' the economy?

Here's what I suggest, let's remove every tax incentive offered to the auto industry and strengthen the auto worker unions to get them back to where they were in the '50s - that will certainly bring Detroit back from bankruptcy...

Re: Good for them (1)

cheesybagel (670288) | about 10 months ago | (#46210939)

Actually the government taking more income can result in economic growth in the middle term. In Eisenhower's case he used that income to build the Interstate Highway System. Which eventually made trade cheaper and resulted in increased economic wealth for all in the US. This does not mean it is good for taxes to increase. What it does mean is that infrastructure spending is a good idea.

Real Wealth vs Wall Street wealth (0)

Anonymous Coward | about 10 months ago | (#46211221)

And I would argue that real wealth was created then as opposed to the "get rich quick because we can" environment we have now.

If we had those - inflation adjusted obviously - income tax rates of the 50's, I wonder how the financial collapse of '08 have panned out.

We're looking at a multivariate equation of almost infinite variables here, but the thing is, people are desperate to just stay where they are in terms of living standard. We have folks doing incredibly risky things to just stay even - or keep their living standards.

Even with "Obama Care", when one has to choose between one's health and financial destruction, I have to question our economic system.

I have to question our economic system when one is unemployed for any length of time becomes unemployable - regardless of the reasons. Willingness to work and learn doesn't seem to matter anymore.

Re:Real Wealth vs Wall Street wealth (1)

khallow (566160) | about 10 months ago | (#46225941)

If we had those - inflation adjusted obviously - income tax rates of the 50's, I wonder how the financial collapse of '08 have panned out.

The same. 50 to 1 leverage doesn't change because of income tax rates. Neither does the Fed's easy credit policy change. That's the two big factors right there.

Re:Nuclear/Renewable Energy (0)

Anonymous Coward | about 10 months ago | (#46210789)

Energy will get cheaper in the coming decades, we are Energy Independent in the US and it will affect are Countries

Re:Nuclear/Renewable Energy (0)

Anonymous Coward | about 10 months ago | (#46215453)

Your only "energy independent" because you import so much from overseas. If you had to make things in the US you would use far more energy.

Re:Good for them (1)

Medievalist (16032) | about 10 months ago | (#46213587)

Solution for the US? 1950s income tax rates and strengthen the unions: try to bring back the institutions and policies we had during our boom times.

Maybe you haven't noticed, but that's the opposite of what the rich people who control our legislatures are paying for.

They pulled the ladder up behind them on purpose; they don't want an egalitarian society.

Re:Good for them (1)

khallow (566160) | about 10 months ago | (#46213651)

Solution for the US? 1950s income tax rates and strengthen the unions: try to bring back the institutions and policies we had during our boom times.

Let's consider the other policy items that weren't around then. There was a lot less regulation, for example, no EPA or OSHA.

Social Security took a much smaller bite (3-5% instead of over 15% currently [taxpolicycenter.org] ). Certain huge changes would need to be done to US health care, particularly the constraints on employer-offered health insurance and the recent individual and (as yet not implemented) employer mandates.

While education was less prevalent and subsidized, it was also far less expensive.

So let's critique your proposals. First, stronger labor unions greatly increase the cost of employing people in the US without creating any value to the employer for doing so. Higher income tax rates actually were easy to bypass, resulting in similar real tax rates similar to present.

I don't see what about this scheme will actually help make more middle class people.

And I'm seeing more and more displaced middle-aged workers using their retirement savings to start small businesses to create their own job and many are failing. 4 out of 5 businesses fail.

That's actually a pretty good success rate from what I've heard.

Re:Good for them (1)

jrumney (197329) | about 10 months ago | (#46214283)

But eventually, as Chinese wages increase, more work WILL be moved to Indonesia

Indonesia is already growing rapidly, and labor there is not a lot cheaper (if at all) than China. Any cost savings from moving factories from China to Indonesia are going to be very short term. Probably a better strategy if all they are worried about is cost is to move them out of expensive South Eastern China into the provinces, as the Chinese Government is trying to encourage with all the ghost cities they are building.

great (-1, Flamebait)

yinheimei (3531973) | about 10 months ago | (#46209521)

replica bags [topbagswallets.com]

slave labor (2)

ILongForDarkness (1134931) | about 10 months ago | (#46209561)

In China they can treat people like virtual slaves but in Indonesia they can get actual slaves (people who bought a job from a dealer and came over from say Thailand only to have their passports taken by their new bosses and all their salary taken as interest on the loan, cost of rent for their on factory dormatory etc). I think we should seriously consider whether outsourcing is worth it. Companies make small concessions to "cultural differences" in labor practices in overseas markets. Those companies make "small consessions" when they outsource to regional players, etc. Eventually you have children working in illegal mines at gun point in a forest somewhere. I really don't the latest iCrap that bad.

Re:slave labor (1)

Impy the Impiuos Imp (442658) | about 10 months ago | (#46209675)

US and Europe in the 1980s: If you wanna sell here, you should make here.

China, India, Indonesia, Brazil: Fair enough a rule.

Re:slave labor (2)

ebno-10db (1459097) | about 10 months ago | (#46209941)

China, India, Indonesia, Brazil: Fair enough a rule.

No, they don't just want to make it locally for local consumption. If they did I'd think it reasonable.

Re:slave labor (1)

ILongForDarkness (1134931) | about 10 months ago | (#46211403)

Exactly. Especially with China: they want to make yours and theirs too. Ie make it hard for foreign companies to sell there without a local partner but they are of course okay selling their crap to you.

Re:slave labor (2)

ebno-10db (1459097) | about 10 months ago | (#46209815)

I really don't the latest iCrap that bad.

Would you be willing to pay an extra $4 for a product not made with slave labor? That's the estimate of how much more it costs to make the Moto X because it's done in the US.

Re: slave labor (1)

kenh (9056) | about 10 months ago | (#46210395)

Really? You could pay everyone involved in the entire production chain (raw materials to sub-assemblies to final assemblers/packers) a non-slave (AKA 'living Wage'?) by increasing the retail price of an iPhone $4? I find it hard to believe - please explain.

And, when talking about price for something like an iPhone (as one example) remember there are many different price points:

Price of an unlocked iPhone to an individual

Price of a locked iPhone sold in bulk to a carrier/retailer

Price phone company (Apple, Motorola) pays the manufacturer (Foxconn) for finished iPhone

Price for manufacturer (Foxconn) to build the iPhone from parts

Subsidized price of locked iPhone to the consumer/subscriber

Raising the per piece price by $4 when it leaves the factory would not raise the price most consumers pay by 'only' $4.

Re: slave labor (1)

swb (14022) | about 10 months ago | (#46210643)

It's almost believable depending on sales volume and what's considered a non-slave wage and how many get the extra money.

A cursory Google search showed that Samsung sold 40 million Galaxy S4s. The phone was introduced in March 2013, so if you figure 50 million units in a year, that's $200 million dollars in annual salary to disburse. If the number of affected workers is 10,000, that's $20,000 in supplemental pay.

That doesn't seem totally unbelievable, especially considering $20,000 per year in salary is probably a very livable wage in third world countries.

But you need the sales volume to make it work at $4. If you only sold a million units you'd need to raise the price much higher which might not be sustainable.

Re: slave labor (1)

ebno-10db (1459097) | about 10 months ago | (#46211575)

Really? You could pay everyone involved in the entire production chain (raw materials to sub-assemblies to final assemblers/packers) a non-slave (AKA 'living Wage'?) by increasing the retail price of an iPhone $4? I find it hard to believe - please explain.

Please explain why you find that hard to believe. Is it because you've unquestionably accepted the "everything is so much cheaper to make in China" line? If cheap labor was always the key to less expensive products, the Industrial Revolution never would have happened. See, for example, GE's experience with their hybrid hot water heaters, where moving the manufacturing back to the US and properly designing it for manufacturability (using information and design suggestions from the assemblers themselves) actually reduced manufacturing costs and improved quality.

Cell or smart phone manufacturing is heavily automated. Only a tiny amount of assembly is done manually. Moreover the amount that is done manually is largely the result of sloppy design practice that's tolerable only because Chinese labor is so cheap. The price difference is explained here [tomshardware.com] . That's the manufacturing cost. Obviously there is markup along the chain, but for a small amount of increased cost like that, it's mostly a matter of bargaining power and how much the designer/manufacturer/distributor feels they can get away with.

As for your "entire production chain (raw materials to sub-assemblies to final assemblers/packers)", you don't seem to understand how the supply chain for cell phones works. Raw materials and their processing is done all over the world - most is not done in China. The same is true for component manufacturing, and the components account for many times the cost of the labor.

Re:slave labor (1)

phmadore (1391487) | about 10 months ago | (#46211769)

Personally, I tire quickly of business telling me that labor is their highest cost. They are taught in school to minimize the cost of labor, but in the end, you're talking about, for a good job, about $120 a day per work (that's $15 an hour, about twice the bullshit minimum wage and about what you need, in my experience, to comfortably raise a family). If you have 100 workers, you're now talking about $12,000 per day, times 365 is around 4.4M per year. If you have 100 workers and you cannot find a way to make them produce at least five times that figure in a year, you are the problem, not their wages. Your marketing is failing, not them. And when they are failing, you can fire them, because if you are paying them correctly, they will have no motive to unionize, and they will have no protection against being fired. But few American companies even employ that many people. Most American companies would rather have one guy working 90 hours a week and hire no other new guys for months on end. It's greed, plain and simple, and Wall Street/shareholders etc are to blame. Before they came along, profit margins were not as important as quality products nor content workers (the strikes and labor movements of the early 20th century scared the fuck out of bosses nationwide). Sure, they capitalized and funded possibly countless innovations. But I personally believe those innovations would have come along without their steroidal injections.

Re:slave labor (1)

phmadore (1391487) | about 10 months ago | (#46211781)

Problem with my formula: it does not account for sick days or weekends. It is the worst case scenario, with every worker working 56 hours a week instead of 40. I should just keep quiet.

Re:slave labor (1)

mjwx (966435) | about 10 months ago | (#46214013)

In China they can treat people like virtual slaves but in Indonesia they can get actual slaves (people who bought a job from a dealer and came over from say Thailand only to have their passports taken by their new bosses and all their salary taken as interest on the loan, cost of rent for their on factory dormatory etc).

I take it you don't know much about SE Asia.

Thailand is one of the better off nations, comparatively speaking. In fact, Thailand has a big problem with illegal workers hopping over the border from Myanmar (Burma) and Laos (which Thai businesses are more than happy to give the worst jobs to). The "guest workers" in Indonesia are more likely to be Burmese, Laotian, Cambodian or Filipino but the workers will be mostly Indonesian as Indonesia is a big place and some islands/provinces are worse off than others.

However Indonesia is small time in the importation of workers, the big abuser of SE Asian "guest workers" are the Arab states, most notably Dubai which pretty much wrote the book on abusing people from poor nations in the modern marketplace. Few Filipino's will end up in Indo because most of them go to places like Dubai.

Buck Feta! (0, Offtopic)

Anonymous Coward | about 10 months ago | (#46209569)

Buck it right in the ass! Beta, that is. It sucks.

How Can They Loose? (1)

Farmer Pete (1350093) | about 10 months ago | (#46209601)

How can a company as big as Foxconn think that the way to improve smartphone sales in Indonesia is to start mass producing Blackberries in Indonesia? Can't the Indonesians just skip Blackberries and go straight to Android? I'd recommend iPhones, but I doubt many Indonesians, living on $4,000 a year, could afford a phone that costs about two months wages. http://www.nationmultimedia.co... [nationmultimedia.com]

Re: How Can They Loose? (1)

kenh (9056) | about 10 months ago | (#46210303)

How can so many Americans, themselves living on government handouts and public assistance 'afford' iPhones that several hundreds of dollars?

Re: How Can They Loose? (1)

Qzukk (229616) | about 10 months ago | (#46210797)

Simple: they bought the phone before they lost their job and their house, and now they keep it just in case some company decides to take pity on them and hire a homeless bum, so they'll get the call to come in for their interview.

Re: How Can They Loose? (1)

Farmer Pete (1350093) | about 10 months ago | (#46210799)

How can so many Americans, themselves living on government handouts and public assistance 'afford' iPhones that several hundreds of dollars?

Just doing a quick google search, it looks like the average single person on welfare can receive ~$300 a month. That's not including food stamps, medicaid, or housing assistance. Not to mention that a LOT of people living off welfare are defrauding the system by hiding assets, income, or additional support they receive from others. Around here, it's not uncommon for a woman to go on welfare/food stamps/medicade/housing support, while her live in boyfriend goes to work at some retail location. All of her government aid pays for the majority of the bills, while his income is enough to afford the luxuries. Around fifteen years ago, I worked at a national fast food chain while I was in highschool. I had a coworker who had a brand new F150 with all the bells and whistles. I had another coworker who was driving a brand new Caddilac. After I got to know them a bit, I found out the truth on how they could afford the cars. When you only make $7-8 an hour, it's hard to imagine how someone could afford a $35-50k car. It's not hard to spend $400 a month on your car payment, when your house, food, and utilities are all covered from your girlfriends government assistance.

Re: How Can They Loose? (1)

jrumney (197329) | about 10 months ago | (#46214363)

Just doing a quick google search, it looks like the average single person on welfare can receive ~$300 a month.

That's minimum wage in neighboring Malaysia, which employs many Indonesians as factory, construction and domestic workers.

Re: How Can They Loose? (1)

kenh (9056) | about 10 months ago | (#46210421)

You can't imagine a lower-priced blackberry custom made for the Indonesian market?

Title Bad Need More Better (2)

mandark1967 (630856) | about 10 months ago | (#46209603)

"Foxconn Building Factories In Indonesia"

Wow! Foxconn has factories dedicated to constructing buildings?!?!

I bet the assembly line is frikkin HUGE!

Now the workers don't even have to go outside to jump to their death! They can just jump off the assembly line!

I want my Iphone! (0)

Anonymous Coward | about 10 months ago | (#46209711)

Who cares where all devices are built, as long American consumers benefits from low prices.
Thank you senators.

Re:I want my Iphone! (1)

Opportunist (166417) | about 10 months ago | (#46209871)

Where is the difference between a device costing 300 bucks or 400 bucks if you have 0.00 bucks because you have no job?

fuck you slashdot beta wtf (0, Offtopic)

Anonymous Coward | about 10 months ago | (#46209715)

fuck this fucking site what was once a smoldering pile of ash has now been pissed on

GOODBYE SLASHDOT

Re:fuck you slashdot beta wtf (0)

Anonymous Coward | about 10 months ago | (#46209775)

Baibai.

Taiwan is not China. (1)

MaWeiTao (908546) | about 10 months ago | (#46209803)

Foxconn is Taiwanese, not Chinese. That's an essential distinction because neither the Taiwanese government nor their businessmen have any allegiance to the People's Republic of China. The fact that they've torn down a lot of barriers to travel and business is primarily due to opportunities for profit.

Taiwan still has a strong manufacturing base and like most other countries shifting manufacturing to China because it was cheaper. The fundamental driver, was cheap labor and overall lower cost of doing business. However, in many cases they retained the expertise for themselves, generally sending Taiwanese over to China to run the factories. This is in contrast to Americans who essentially outsource everything and then leave quality control and factory management in the hands of the locals.

This makes it much easier for Taiwanese to pull out and move their manufacturing elsewhere. They aren't stuck with this knowledge base in China they've invested in. Moving a factory isn't a big deal if there's a good case for it. It's relatively easy to train locals to work at your factory. However, engineers and managers with intimate knowledge of the process and all its nuances is much harder to replace.

The end result is that in the long run China is screwed. Unlike the Japanese, Koreans and Taiwanese, they're still a ways away from establishing their own technological base that enables them to not be reliant on manufacturing. The Taiwanese have had a harder time establishing their own brands, but they've practically cornered the market in high end manufacturing. Their companies are less likely to suffer a conflict of interest, unlike Samsung, and the stuff they make has a high degree of quality.

w-h-y d-o s-l-a-s-h d-o-t f-o-r-c-e-s b-e-t-a? (1)

fuck_beta99 (3532047) | about 10 months ago | (#46210075)

b-e-c-a-u-s-e t-h-e-y w-a-n-t t-o s-e-l-l a-l-l t-h-e u-s-e-r d-a-t-a t-o a-d-v-e-r-t-i-s-e-r-s

taxation (1)

lkcl (517947) | about 10 months ago | (#46210175)

i heard that taxation on electronic "luxury" goods is at an insane level in indonesia, resulting in grey imports and smuggling. building a factory in indonesia would be a simple way to get round the problem.

Re:taxation (0)

Anonymous Coward | about 10 months ago | (#46210297)

So tariffs lead to foreign investment in domestic plant and equipment.

Lesson learned.

mod Up (-1)

Anonymous Coward | about 10 months ago | (#46210353)

con7inues toChew 1t racist for a

Chinese...riiiiight (1)

gx5000 (863863) | about 10 months ago | (#46211839)

Since when are they Chinese ?!

Hon Hai Precision Industry Co., Ltd., trading as Foxconn Technology Group, is a Taiwanese multinational electronics contract manufacturing company headquartered in Tucheng, New Taipei, Taiwan. Wikipedia
Stock price: 2317 (TPE) NT$81.70 +0.30 (+0.37%)
Feb 10, 1:30 PM GMT+8 - Disclaimer
Founder: Terry Gou
Founded: 1974
Headqhttp://slashdot.org/story/14/02/10/138219/foxconn-building-factories-in-indonesia#uarters: New Taipei, Taiwan

Foxconn + Mozilla (1)

caspy7 (117545) | about 10 months ago | (#46213013)

Criticize the technical merits all you like, but Mozilla's partnership with Foxconn to produce inexpensive phones may turn out to be very strategic (for both parties).

Another Ali Baba Syndrome example? (0)

Anonymous Coward | about 10 months ago | (#46221549)

Indonesian Society despise Chinese - in the 1997-1999, the indonesian government approved of riots targeting ethnic chinese living in Indonesia. . The USA government, the Chinese government look the other way too. And when Indonesian Roman Catholic priest complained - Rome looked the other way too. If Foxconn treats their employees as bad as in China - it will turn very ugly very quick. There's a Indonesian saying for the typical chinese-Indonesian commercial venture... Ali Baba Syndrome. A muslim main contractor Baba gets the license to run a business but all of the big money and subcontracts goes to a rich Chinese Li and the rest of the native Indonesians stay dirt poor -- hence the low demand for expensive smart phones by the masses When Venture Capitalist George Soro induced Asian currency meltdown occured and caused the Indonesian baht to collapsed - the Native Indonesian blamed everything on the ethnic chinese living there and killed, raped, stole, robbed, and beat the living crap out of the ethnic (especial christian) chinese there. One of the reason, China limits foriegn venture capital is because they fear VC like George Soro causing a economic meltdown in China.

Check for New Comments
Slashdot Login

Need an Account?

Forgot your password?