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[MW]Foxconn to pass along rising wage costs to customers

post #1 of 72
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Quote:
HONG KONG (MarketWatch) -- Foxconn International Holdings will ask customers to help shoulder the added cost burden arising from its pledge to increase wages at the contract manufacturer's factories in China, according to media reports Wednesday...

...

The wage hikes come in the aftermath of a number of suicides at Foxconn's production facilities in Shenzhen, where as many as 10 staffers have died in the past five months amid accusations of overly long work shifts. See related story on Shenzhen suicides and Foxconn management.


The higher costs would likely be a factor in annual contract negotiations now getting underway. The talks, which will set prices for next year's orders on products ranging from the iPhone to the PlayStation, are expected to be completed within the next quarter, with "as much as possible" of the rising wage bill to be passed along, Samuel Chin, Foxconn's chairman, was cited as saying by the FT.
http://www.marketwatch.com/story/fox...k=MW_news_stmp
post #2 of 72
How is this surprising? Any business would do that, it's how things work.
post #3 of 72
Quote:
Originally Posted by Greg121986 View Post
How is this surprising? Any business would do that, it's how things work.
it is also how you get kicked out of business as well.
post #4 of 72
Quote:
Originally Posted by dantoddd View Post
it is also how you get kicked out of business as well.
Ever shipped a UPS package where they charge you a fuel surcharge?
Ever read your cellphone plan and saw all the goofy FCC charges?
Ever bought an airline ticket and saw "airport fees" or "landing fees"?

These are all prime examples of a company directly passing on charges to you, the consumer. Foxconn won't go out of business because they are going to raise their prices a few pennies on the dollar.
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MONOLITH
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post #5 of 72
So basically Foxconn is passing on a cost of living [employees] increase.
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post #6 of 72
It needed to be done. In fact, quite a few people on here said they would be happy to pay extra for their products if they would increase their employees wages.
post #7 of 72
well the money has to come from somewhere... executives sure as hell won't take a pay cut to give their employees a raise.
    
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post #8 of 72
Ummm... what else would they do... the obvious is ovbiois
    
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post #9 of 72
I don't mind paying an extra 5 bucks if it means people who are in poor working conditions get some kind of improvement.
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post #10 of 72
Well this is to be expected I guess, but you won't see me paying more for an inferior product. They need to figure out how to compete in this market. Don't expect simpathy purchases from me Foxconn!

Now if the raise in prices is like $5, I'm ok with that, but if it's a lot, you won't see me purchasing. Foxconn's needs to figure out how they can stay competitive, they can't just expect the consumer to pay a lot more for their products.
Edited by whitingnick - 6/9/10 at 6:51am
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