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Apple Needs to Find Its Exit Strategy From China

Workers take photos of a car turned over after a brawl by employees at Foxconn's industrial zone in Taiyuan, capital of Northern China's Shanxi province
Workers take photos of a car turned over after a brawl by employees at Foxconn's industrial zone in Taiyuan, capital of Northern China's Shanxi provincePhotograph by AP Photo

“IPhone5 Launch Causes Riots”

You’d expect to see headlines like this when consumers beat down doors and trample each other, yet these riots were in China, among workers at Foxconn, a major supplier to Apple and other U.S. companies. Shortages were already occurring in Apple’s supply chain, and the huge demand meant even higher production rates at some suppliers’ factories. Some unconfirmed reports suggested that Foxconn’s attempt to boost production by extending overtime and moving people from one location to another were significant factors contributing to the unrest and brief factory shutdown.