Are iPhone prices about to increase in China?

(VTC News) – The recent brawl involving thousands of workers at an iPhone assembly plant in China is expected to have a certain impact on iPhone prices in the country.

(VTC News) – The recent brawl involving thousands of workers at an iPhone assembly plant in China is expected to have a certain impact on iPhone prices in the country.

Western news agencies reported that the encounter The incident occurred on September 24th at the headquarters of an iPhone assembly plant belonging to Foxconn in Taiyuan City, Shanxi Province, China. Authorities had to deploy more than 5.000 police officers to restore order.

A section of an iPhone assembly plant vandalized in China - Photo: Bloomberg

What concerns consumers in China is whether, following the alleged clashes stemming from tiring work and low wages, the price of the iPhone 5 will increase due to manufacturers raising workers' salaries.

Following the riots the other day, Foxconn will likely be forced to raise workers' wages, leading to a slight increase in the price of the iPhone 5, according to Chinanews.

According to Reuters, the incident stemmed from workers demanding higher wages and shorter working hours due to excessive work pressure. 

Foxconn continues to deny whether it is the assembler of the iPhone 5, a product that is selling very well in China.

However, an anonymous Foxconn employee told Reuters that the factory in Thai Nguyen – where the clash occurred – is the unit that assembles components for the iPhone 5.

Meanwhile, Bloomberg sources say the iPhone 5 is assembled at other Foxconn factories, located in Shenzhen and Zhengzhou. 

"I don't think the factory being forced to close for one day will lead to anything significant. We can absolutely make up for the shortfall in products, and the factory resumed operations on September 25," Foxconn spokesperson Louis Woo told Bloomberg by phone.

The iPhone 5 is currently a very popular item in China.

Reuters, citing SACOM – an independent corporate governance organization based in Hong Kong – confirmed that Foxconn had failed to fulfill its commitments regarding wages and working hours for its workers. 

“Apple and Foxconn committed to a 60-hour work week for each worker. But in reality, most workers have to work 70 hours a week, or even more, to meet the required production targets,” Li Qiang, a labor rights activist, told Reuters.

SACOM claims that many workers at Foxconn factories are working for an entire month without a day off. This is a direct consequence of Apple's sales policy: no inventory.

Therefore, whenever a new iPhone product is launched, workers always have to work tirelessly to meet the demand of millions of enthusiasts. smartphone this.

Estimates suggest that around 5 million iPhone 5s have been sold in China, while the manufacturer had hoped for sales of 8 million units. On classified ad websites in China, iPhone 5s are being offered at an average price of $1.000 per unit.

Huyen Le