C. Custer
C. Custer
12:00 pm on Feb 14, 2012

Apple (NASDAQ:AAPL) is getting it from all angles right now in China. Concerns about working conditions at Apple suppliers has led to the company requesting a Fair Labor investigation, the lost court case with Proview means iPads are being taken off store shelves and the import and export of iPads from China may be banned, and now Sina Tech is reporting that of the $500 sale price of an iPad, the people who actually made it — the Chinese workers — only get $8.

Of course, the hardware in an iPad isn’t cheap, but it turns out that after hardware costs, Apple gets about $150 for every iPad sold. That’s about 30 percent of the sale price, and it dwarfs the 1.6 percent that Chinese workers get.

In comparison, Korean hardware suppliers apparently take in about $34 for each iPad sold.

Of course, Apple’s Chinese suppliers are still making money, and workers are not slaves — if they’re unhappy with their wages they are generally free to leave. Still, though, a company that makes as much as Apple could push suppliers to pay workers better without risking much of anything. It just doesn’t want to.

For more detail on how Apple profits break down, check out this post — with handy charts — from last December.

[Via Sina Tech]


Replies
  • http://profile.yahoo.com/YYYSQWUR733WOGZORWWGC5UT7A Anonymous

    Wages are rising at Foxconn, other factories and employers are complaining about Foxconn driving up wages:
    http://www.wantchinatimes.com/news-subclass-cnt.aspx?cid=1302&MainCatID=13&id=20101207000085

    Shenzhen:

    2004: 380 RMB/month

    2006: 400 RMB

    2007: 600 RMB 

    2008: 700 RMB 

    2009-July 2010: 900 RMB

    July 2010: 1200 RMB

    Oct 2010: 2000 RMB after 6 month probationary period at 1200 RMB

    April 2011: 2390 RMB after 6 month probationary period at 1590 RMB 

    2011:

    Chongqing: 1350 RMB [Chongqing’s legal minimum wage: 870 RMB in 2011]
    Chengdu: 1300 RMB  [Chengdu’s legal minimum wage: 850 RMB in 2011]

    Zhengzhou:

    2011: 1350 RMB [minimum wage 850 RMB in 2011]

    2012: 1550 RMB first 6 months, 1750 RMB thereafter

    Source for Shenzhen wages, 2004-2009: http://14447597.blog.hexun.com/52403336_d.html

    Source for 2011 wages, SACOM reports: http://www.sacom.hk

    Source for 2012 Zhengzhou wage: http://www.flickr.com/photos/micgadget/6792121469/

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