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used by The Apple iPhone 4 components manufactured in plants located in Eurepo The 4 contained more than 100 supplied flash memories and applica Asia, and the United States. For exampl supplied chips that send and receive phone calls processors, and Infineon (a German chip maker) based a, and new to the iPhone 4, came manufacturers assembled these parts in touch-screen module came from Taiwan. Contract in a short period of each or that ired each work completion. Estimates of the material cost of phone moved along an assembly line toward and A profit margins about assembly labor around total estimated standard costs and Exhibits 2 for 60% of the selling price No. 2.) overhead budgets for the Danshui Plant The embly Danshui Plant No. 2 was most entirely based on handwork by workers. asse the assembly pro for an iPhone 4 released the iPhone 4 handled by 125 boul 140 steps five days required for assembly, Apple on June 24, individuals during the ld in days it was ava waited the ailable. was most successful product in Apple history. Apple fanatics around the world lines to get hands on the new phone. The August Report operations. (See Exhibit On September 2, Chen arrived at his office and found a report on August 3). The Jianye Ma, note with interest. Wentao Chen To: From: Jianye Ma and Binggian Li Date: September 1, 2010 Per your request we have compiled a preliminary report on August operations. At first glance, revenue was below budget, material usage seems good, and labor costs were above budget. In terms of plant profit, our budget was $100,000, but we actually had a loss of The main reason for the shortfall may be that we have unable to produce 200,000 4 units in any of the three months we have been working on this contract. our major obstacle is hiring enough qualified labor to get production up to 200,000 units per month. We cannot find people to hire, even though we have raised our factory wages by almost 30% since July. (A friend at Foxconn in Shenzhen told Li that they raised their starting pay by 35% since March, and they are building new plants elsewhere where unemployment is high.) addition, we continue to have trouble with the Samsung flash memory installation. Unless these are handled very carefully, they can be damaged by heat during installation. One thousand flash memories were damaged in August and had to be replaced after on. Samsung is aware of this problem and has begun to install a shield to prevent BRIEFCASESIHARVARD BUSINESS SCH