Apple to Contribute Toward Costs of Improving Working Conditions at Foxconn Facilities

Reuters reports on comments from Foxconn chief Terry Gou, who claims that Apple and Foxconn will be splitting the initial costs to improve working conditions at Foxconn's facilities in China.

"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."

It was unclear if the split would be 50/50 or in some other ratio.

ipad assembly foxconn
Foxconn workers assembling iPads (Source: Rob Schmitz/Marketplace)

Foxconn has raised wages several times over the past couple of years as it has faced scrutiny over the treatment of its employees. And following a series of audits, Foxconn and the Fair Labor Association reached an agreement in late March to reduce overtime while boosting compensation packages to compensate for the reduction in hours.

It is unclear how much the actions are costing Apple and Foxconn and how the costs are being split, but with Foxconn operating on a very slim profit margin it has limited ability to finance such improvements without raising costs for its customers or receiving direct support from Apple to assist with the changes.

Popular Stories

maxresdefault

Apple Shows Off a Key Reason to Upgrade to the iPhone 17

Saturday February 7, 2026 9:26 am PST by
Apple today shared an ad that shows how the upgraded Center Stage front camera on the latest iPhones improves the process of taking a group selfie. "Watch how the new front facing camera on iPhone 17 Pro takes group selfies that automatically expand and rotate as more people come into frame," says Apple. While the ad is focused on the iPhone 17 Pro and iPhone 17 Pro Max, the regular iPhone...
m5 macbook pro deal

Why You Shouldn't Buy the Next MacBook Pro

Tuesday February 10, 2026 4:27 pm PST by
Apple is planning to launch new MacBook Pro models as soon as early March, but if you can, this is one generation you should skip because there's something much better in the works. We're waiting on 14-inch and 16-inch MacBook Pro models with M5 Pro and M5 Max chips, with few changes other than the processor upgrade. There won't be any tweaks to the design or the display, but later this...
apple wallet drivers license feature iPhone 15 pro

Apple Says These 7 U.S. States Plan to Offer iPhone Driver's Licenses

Monday February 9, 2026 6:24 am PST by
In select U.S. states, residents can add their driver's license or state ID to the Apple Wallet app on the iPhone and Apple Watch, and then use it to display proof of identity or age at select airports and businesses, and in select apps. The feature is currently available in 13 U.S. states and Puerto Rico, and it is expected to launch in at least seven more in the future. To set up the...
iOS 26

Apple Releases iOS 26.3 and iPadOS 26.3

Wednesday February 11, 2026 10:07 am PST by
Apple today released iOS 26.3 and iPadOS 26.3, the latest updates to the iOS 26 and iPadOS 26 operating systems that came out in September. The new software comes almost two months after Apple released iOS 26.2 and iPadOS 26.2. The new software can be downloaded on eligible iPhones and iPads over-the-air by going to Settings > General > Software Update. According to Apple's release notes, ...
Apple Logo Zoomed

Apple Expected to Launch These 10+ Products Over the Coming Months

Tuesday February 10, 2026 6:33 am PST by
It has been a slow start to 2026 for Apple product launches, with only a new AirTag and a special Apple Watch band released so far. We are still waiting for MacBook Pro models with M5 Pro and M5 Max chips, the iPhone 17e, a lower-cost MacBook with an iPhone chip, long-rumored updates to the Apple TV and HomePod mini, and much more. Apple is expected to release/update the following products...

Top Rated Comments

Small White Car Avatar
180 months ago
Non-rhetorical question: Why does Apple not just buy Foxconn? Apple could buy Foxconn, strengthen its supply chain, stop paying the Foxconn profit margin, and prevent Foxconn from being a manufacturer for rivals. Maybe I'm overlooking something obvious.

Foxconn is huge and has many other clients.

It would be like someone buying the entire McDonalds corporation just to make and sell the french fries.
Score: 21 Votes (Like | Disagree)
gregwyattjr Avatar
180 months ago
I still don't understand why people are spitting venom at Apple in regards to their factories when there are other factories far far worse.
Score: 17 Votes (Like | Disagree)
180 months ago
I still don't understand why people are spitting venom at Apple in regards to their factories when there are other factories far far worse.

people are jealous of their record profit.
Score: 7 Votes (Like | Disagree)
whooleytoo Avatar
180 months ago
Nice touch, considering Apple didn't HAVE to do this.

Seems like Apple's influence (even if it is being 'forced' by negative press) is having a positive effect on the local workforce & working conditions. I guess that shows the real benefit of being there; rather than avoiding countries with - to Western viewers - negative, oppressive work practices.
Score: 6 Votes (Like | Disagree)
180 months ago
Because Apple agreed to be their client. It's kinda like being friends with a guy who beats his wife. There are probably many other companies that could supply the parts Apple needs that treats its employees better. Sure, it may cost a bit more, but a better reputation may be worth it. Plus, with Apple's halo effect, many people will still pay for Apple products regardless of price.

Because China needs to be responsible for its own mess, not someone else. If some some Chinese man is beating his wife, don't call Apple, the local police will do fine.
Score: 4 Votes (Like | Disagree)
Krazy Bill Avatar
180 months ago
Some of you guys are hilarious.

If you want "good" to be done, get out your checkbooks and make it so. Personally, I don't invest in a company and expect the tree-huggers and whale-savers to spend my money without some kind of a return. I'll decide charity on my own - like it should be.

Blame China for Foxconn's problems.
Score: 4 Votes (Like | Disagree)