Foxconn Raising Prices to Avoid Further Suicides

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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  • figgus
    bloodlust2222This is funny Sh*t. So by them raising prices it's going to decrease suicides? Maybe someone should tell them to give there employees raises. I have a hard time believing the price increase is going to go into the workers hands. I guess teh CEO needed something to justify the increase. Good excuse.


    Did you even READ the article?
    35
  • g00fysmiley
    so apple will be charged an extra dollar or two per device and add a couple hundred to the final price claiming its thier supply parts companies raising prices.. its iCONomics
    31
  • silentq
    Apple is not overpriced enough? Yeah, just give Jobs another reason to crank up the prices.
    Jobs: "We incresed the price of iPhone 4 from $799 to $999 because Foxconn raised it's production value from $6.54 to $6.75 in order to compensate the workers and decrease suicides. Apple simply follows the rules."
    23
  • Other Comments
  • Anonymous
    This is funny Sh*t. So by them raising prices it's going to decrease suicides? Maybe someone should tell them to give there employees raises. I have a hard time believing the price increase is going to go into the workers hands. I guess teh CEO needed something to justify the increase. Good excuse.
    -32
  • figgus
    bloodlust2222This is funny Sh*t. So by them raising prices it's going to decrease suicides? Maybe someone should tell them to give there employees raises. I have a hard time believing the price increase is going to go into the workers hands. I guess teh CEO needed something to justify the increase. Good excuse.


    Did you even READ the article?
    35
  • g00fysmiley
    so apple will be charged an extra dollar or two per device and add a couple hundred to the final price claiming its thier supply parts companies raising prices.. its iCONomics
    31