While Apple has never officially published the numbers, it is estimated that the company makes anywhere between a 37% and a 60% profit margin for its iPhones. The question is, how does Apple achieve such high margins? For starters, strong bargaining powers and tough negotiations with suppliers. And second, super cheap labor. In fact, the latest reports suggest that workers assembling the iPhone Ultra are only getting paid $4 an hour.
iPhone Ultra assembly workers getting paid peanuts
According to the latest reports from China, Foxconn is getting ready to begin the assembly of the iPhone Ultra and has started hiring new workers for its assembly lines. The hiring is for temporary, seasonal, and hourly staff, with reports claiming that these workers are only getting paid as much as $4 per hour, which is roughly 26 yuan.
Full-time workers aren’t faring much better either. The report suggests that starting salaries are around $360 a month during probation and $410 after probation. There will also be overtime pay, bonuses, and night-shift allowances. All of this should allow these workers to earn a bit more, but honestly, it still feels really low.
That being said, it should be noted that this is China we’re talking about. Obviously there are differences in the cost of living in China compared to the US. But from the outside looking in, it does seem quite little.
Apple rushing for time
That being said, it seems that Apple is racing against the clock. The iPhone Ultra is expected to be announced this September alongside the iPhone 18 Pro and Pro Max. However, there are reports that suggest that initial shipments will be quite low. This means that it could be months before you are able to get your hands on one.
So much so that the report suggests that temporary workers at Foxconn are expected to begin working almost immediately. They will also be able to forgo the usual medical examination process that is part of its onboarding procedure.Â
It is understandable that Apple is rushing to get the phone out. It is its first-ever foldable, so there’s a lot riding on it. We’re also sure that Apple would love to get it ready in time for the holiday season, but whether or not they will be able to remains to be seen.
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