The CEO of Boeing can probably still afford to take a flight on a plane made by his company, and that probably is true of an average worker of a Boeing factory as well.
So let me rephrase: if people working in a factory can only afford the very basic necessities and the actual goods the factory produces get shipped to the other side of the globe (and waste gets left behind), something is not right.
But certainly in the case of the iPhone a lot of them do get bought locally. Perhaps not by Foxconn factory floor workers, but certainly by a lot of other people in China.
I mean I kind of get the point you are trying to make, but Foxconn and iPhones aren't really a good example of that.