Objectivity and Responsibility in Financial News Reporting

Ah, the power of the Press… Draw your own conclusions about objectivity and responsibility.

Foxconn’s factories in China assemble many Apple’s products, and Apple accounts to more than 50% of Foxconn’s revenues. On Feb 20, Financial Times{: target=’_blank’} reported that Foxconn had implemented a hiring freeze at its factories in China. Financial Times attributed the freeze to a slowdown in Apple’s iPhone 5 production. After the news release by FT, Apple’s stock price fell 2%.

On the other hand, RBC Capitals commenting on the same Foxconn’s hiring freeze, reflects that historically, 20%-30% of Chinese workers just leave their factory jobs after Chinese New Year, specially if the pay is low and working conditions are harsh. This year the return rate in Foxconn’s factories has been much higher, closer to 90%, which may explain the hiring freeze. (CNN Money’s Fortune adds: Could that have anything to do with the fact that Foxconn, pressured by Apple and local workers rights groups, has more than doubled wages and cut overtime hours?)

Are the iPhone sales slowing down? According to data gathered by Strategy Analytics, Apple overtook Samsung’s Galaxy S3 in the last quarter of 2012 to become the world’s bestselling smartphone. In the same quarter, the iPhone 4s also overtook the Galaxy S3, so that for the first time, Apple has the world’s #1 and #2 bestselling smartphones.

Data Source: Strategy Analytics, 2013-02-20