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All Foxconn operations except iPhone to leave Shenzhen

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This according to China Daily. Those that stay behind to work on iPhones (presumably the iPhone 4 for the most part although 3GS production will continue) will be paid higher wages. Other products will be made at other Foxconn facilities in outlying areas of China where the workers will be paid unspecified, presumably lower, wages. Foxconn has been announcing higher wages for a while, making one wonder how they would pay for hikes of 20, 30, sometimes 60 percent and still stay in business while keeping costs low enough to keep their contracts with American manufacturers. It makes you wonder about what kind of volume they’re expecting from iPhone sales and how central that one device is to their operation and, by extension, the future of consumer electronics. The Shenzhen plant is, of course, where a rash of suicides hit in recent months although you don’t tend to hear about as many there anymore.

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