Apple Supplier, Provides Better Working Conditions, Increases Prices
October 13, 2010
Reuters is reporting that one of Apple’s suppliers is raising its prices, beginning this month. Hon Hai, which is the world’s largest electronic parts manufacturer also provides parts for Nokia, Microsoft and Sony Ericsson.
FoxConn, which is part of Hon Hai, provides Apple with parts for the iPhone. The company was criticized earlier this year when a number of its Chinese workers committed suicide over low wages and long working hours. In 2009, a FoxConn worker committed suicide after losing an iPhone 4 prototype. Since then, the company has increased what it pays its workers and has installed suicide nets around its facilities.
Naturally, these improvements are leading to higher prices. This is a small price to pay if it eliminates worker suicides and leads to better working conditions overall.
The manufacturer would not comment on Reuter’s report. However 9 to 5 Mac is reporting that the price the company charges Apple for its parts will not increase immediately "as Foxconn will be under a specified contract for those Apple orders it currently occupies."