This will have to have impact on Apple’s bottom line eventually.
“Hon Hai Precision Industry Co., the largest contract manufacturer of electronics, and unit Foxconn International Holdings Ltd. fell in Asian trading as earnings missed estimates after wage increases at their China factories.
Hon Hai, which manufactures Apple Inc.’s iPad, lost 6.6 percent to NT$113 as of 12:10 p.m. in Taipei, set for its biggest decline since May 2009. Foxconn International, the world’s biggest contract maker of mobile phones, dropped as much as 10 percent to HK$4.98 in Hong Kong, widening its lead as the worst performer on the benchmark Hang Seng Index this year.
Hon Hai, flagship of the Foxconn Technology Group and FIH‚Äôs largest shareholder, yesterday posted second-quarter net income that was 14 percent below the average of analysts‚Äô estimates. Foxconn Group is increasing salaries after a spate of suicides prompted clients to investigate working conditions, and will expand in China‚Äôs interior to offset the higher costs.”
Full article:
RattyUK 7:56 am on August 31, 2010 524 days ago Reply
Notice that the second para only mentions the iPad… Seems like a hit piece to me. It isn’t until way down the list that they mention any companies other than Apple. Getting in the iPhone mention before then ‘fessing up to HP and Sony.
Sorry that was not clear. By “hit piece” I mean that although it’s reporting genuine news of course it appears to have been craftily spun to have an influence on Apple’s share price. Look for more of this going forward.
Also it could be that they have had to pay money out to Apple failing to deliver as promised of course. (That’s just a WAG though)