TAIPEI (Taiwan News) — Foxconn Technology Group on Wednesday (Oct. 28) dismissed media reports suggesting a souring relationship between the Taiwanese company and major client Apple as “nonsense” and vowed legal action.
In a report titled “Inside Apple’s Eroding Partnership with Foxconn,” San Francisco-based digital media outlet The Information alleged the iPhone manufacturer has engaged in dishonest business dealings with Apple, employing various tactics to “boost its profits.”
The alleged unethical acts include overcharging Apple by giving inflated headcounts of workers used for particular lines of products, such as the 2018 iPad Pro, and diverting idle Apple equipment to product testing for other clients — in one case for Chinese rival Huawei. The unverified report cited former employees from the two firms.
Foxconn rejected the allegations as pure speculation and said it reserves the right to take necessary legal steps against the claims, wrote CNA.
The electronics contract manufacturer, a major supplier of Apple’s iPhone 12 line, is expected to see its fourth quarter revenue boosted by the demand for the 5G smartphones. Foxconn has also denied a Reuters report suggesting the company has formed a task force to target Chinese electronics manufacturer Luxshare, which it allegedly sees as a rival for its dominant position as iPhone assembler.