Feeds

Foxconn trumps Apple to sit pretty on Fortune 500

But Apple's profits will take some beating

Internet Security Threat Report 2014

Contract manufacturer Foxconn managed to steal a march on its illustrious partner Apple this week after it was ranked several places higher than the fruity toy maker in the latest Fortune Global 500 rankings, with a whopping $117.5bn (£75.7bn) in revenues.

The Taiwanese giant’s parent company Hon Hai Precision Industry was placed 43rd on the annual list of the world’s biggest companies by revenue. Apple, by contrast, sat in 55th spot with $108.2bn (£69.8bn), climbing an impressive 56 places from last year’s list.

When it comes to profits, however, Apple is the clear winner. It managed to generate $25.9bn (£16.7bn) in profits over the period versus Hon Hai’s $2.8bn (£1.8bn).

In fact, Foxconn’s tight profit margins are frequently cited whenever it decides to raise staff wages or invest in improving working conditions as a factor which could force the firm to pass on cost hikes.

So far those fears have been largely allayed, with the firm sacrificing profits in favour of retaining contracts with Apple and others.

It remains to be seen whether the recent deal struck with Apple and the Fair Labor Association over improved working conditions will finally force a change here.

It has agreed to reduce overtime and working hours, increase staff numbers, develop compensation packages for staff and retroactively pay those cheated out of overtime, among other measures which will further eat into profits.

The Fortune 500 list also revealed China’s inexorable rise on the world stage.

The People’s Republic overtook Japan for the first time and now has the second largest number of companies on the list after the US.

China had 73 companies on the list, 12 more than last year, but is still some way behind the US with 132 companies on the list – one fewer than in 2011. ®

Choosing a cloud hosting partner with confidence

More from The Register

next story
WHY did Sunday Mirror stoop to slurping selfies for smut sting?
Tabloid splashes, MP resigns - but there's a BIG copyright issue here
Spies, avert eyes! Tim Berners-Lee demands a UK digital bill of rights
Lobbies tetchy MPs 'to end indiscriminate online surveillance'
How the FLAC do I tell MP3s from lossless audio?
Can you hear the difference? Can anyone?
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.