With prior announcement of increasing wages of workers working at Foxconn factory, Reuters just reported that Apple and Foxconn will share the initial costs of improving labor conditions at the Chinese factory unit which assemble iPhones and iPads. Foxconn chief Terry Gou did not give a figure for the costs, but it is expected that both the companies has been spending huge amount to remove the poor working conditions of its labor forces.
“We’ve discovered that this (improving factory conditions) is not a cost. It is a competitive strength,” Gou told reporters on Thursday after the ground-breaking ceremony for a new China headquarters in Shanghai. “I believe Apple sees this as a competitive strength along with us, and so we will split the initial costs.”