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Foxconn Raising Prices to Avoid Further Suicides

by - source: Tom's Hardware US

Foxconn is passing some of those increased wage costs onto its clients.

Hon Hai, or Foxconn, is essentially the manager of one of the world's major electronics factories. Foxconn is one of the premier manufacturers of electronics designed by Apple, Nokia, Sony Ericsson, Microsoft, Dell, HP, among many others.

Although Foxconn is usually in the background, as the designers and sellers of the electronics take the spotlight, the manufacturing company has been under scrutiny for the working conditions that it gives to its workers.

A flurry of suicides cast a light on Foxconn and its employment practices. In response, Foxconn vowed to improve working conditions as well as increase wages (though there's still some question as to how effective the changes are). Such increases come at an added operating cost for Foxconn, and some of that cost is going to be passed on to the company's clients.

According to Reuters, Foxconn will be raising prices starting this month for some of the services that it provides to its clients, including Apple. Given that iSuppli estimates that the iPhone 4 costs $6.54 to make in China, it's doubtful that Apple will be feeling any sort of pinch from a higher rate.

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flaminggerbil 14/10/2010 15:11
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Eh, so they treat their workers like shit but feel the only way of stopping them all from topping themselves is to push wages up slightly and pass the burden to the clients.

LePhuronn 14/10/2010 15:17
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Weren't all the Foxconn suicides all at Apple production plants?

Devastator_uk 14/10/2010 19:06
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Quote :iSuppli estimates that the iPhone 4 costs $6.54 to make


Don't think so:
http://www.isuppli.com/Teardowns-M [...] uppli.aspx

proletarian 14/10/2010 20:33
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Devastator_uk :
Don't think so:http://www.isuppli.com/Teardowns-M [...] uppli.aspx



cost TO MAKE as in to put it together.

clearly they're not getting an entire iphone for less than a fiver.

don't be so f**ki

Plumble 14/10/2010 22:39
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It shouldn't take employees killing themselves to improve working conditions. Other manufacturers manage it.

Avro Arrow 21/10/2010 14:50
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I remember reading about things that went on at Foxconn that would cause sucides more than low wages would. The rapes, the beatings and the threats. It wouldn't surprise me one bit if the Foxconn "suicides" were actually murders designed to keep the rest of their employees in line. The working conditions there are similar to being a slave to the mafia.

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