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Discover the “iPhone City” and how future factories in the United States can affect your market

Due to President-elect Donald Trump's ideas that Apple should manufacture their products in the United States, The New York Times published an extensive article in which he presents the so-called ?City of the iPhone? and its positive impacts for Ma.

Zhengzhou a city with 6 million inhabitants, located in one of the poorest areas of China. where the largest factory in the Foxconn, the leading manufacturer of Apple products. The place has such a large presence of Ma that it was nicknamed ?City of the iPhone? ("IPhone City") by the residents themselves.

Foxconn employees in ZhengzhouFoxconn in Zhengzhou: Employees arriving and leaving their office hours

An overwhelming workforce begins to arrive for the day shift at 6:30 am. They go by foot, by bus, by engine and even by pedicab. They line up firmly to enter the dozens of factories spread over 2.2 square miles. In the most productive hours, around 350,000 workers assemble, test and pack iPhones at up to 350 units per minute.

The government pays recruiters an allowance for each worker they hire, said Liu. "If the demand is high, then they will pay more," he said. "If demand is low, then the payment will be low, too."

This last paragraph may reveal one of the great benefits for Foxconn and, consequently, for Apple. The Chinese government has been a major contributor to Foxconn's operations, both financially and politically. A representative of the manufacturer said that he received bonuses for each export target achieved; in the first two years of making iPhones exclusively, subsidiaries totaled $ 56 million.

Foxconn, in another statement, said it was grateful for the government's support, noting that "it was no different from the tax benefits that all companies obtain, in places around the world, for large investments".

In response to questions, Apple said it was aware of government support for infrastructure. The company added that it was not aware of specific subsidies, subsidies or tax exemptions granted to its production partner.

As the local government itself favors Apple, it may well be that resistance to taking production to the United States may well come. Even if that happens, I believe it will be a little difficult for the company to withdraw its entire operation from China, because, as Tim Cook himself said, the workforce there is much more "robust". However, something that could shake this relationship is the increase in the import rate in China that Trump has already threatened to implement.

The complete matter of the NYT It is quite interesting and deepens in the city's relationship with Foxconn and Apple since the time they decided to start production in China (still there at the time of Steve Jobs); recommended reading!

(via The Loop)