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

iphone 17 pro asherdipps

iPhone 17 Pro Max Rumors Allegedly Refer to 'iPhone 17 Ultra' Model

Friday March 14, 2025 7:56 am PDT by
If you've been following iPhone rumors over the last few years, you may remember reading reports that Apple flirted with the idea of introducing a super high-end "Ultra" model that would either replace its Pro Max device or sit above it in Apple's smartphone hirearchy. These reports appeared in the pre-launch iPhone 15 and iPhone 16 rumor cycles, but ultimately came to nothing. Now though, the...
airpods pro 2 gradient

AirPods Pro 3 Launch Now Just Months Away: Here's What We Know

Tuesday March 11, 2025 3:26 am PDT by
Despite being released over two years ago, Apple's AirPods Pro 2 continue to dominate the wireless earbud market. However, with the AirPods Pro 3 expected to launch in 2025, anyone thinking of buying Apple's premium earbuds may be wondering if the next generation is worth holding out for. Apart from their audio and noise-canceling performance, which are generally regarded as excellent for...
ios 18 4 carplay

Apple Upgrades CarPlay in Two Ways

Wednesday March 12, 2025 6:05 am PDT by
The upcoming iOS 18.4 update for the iPhone includes a smaller but meaningful improvement for Apple's in-car iPhone mirroring system CarPlay. Specifically, CarPlay now shows a third row of icons, up from two rows previously. However, this change is only visible in vehicles with a larger center display. For example, a MacRumors Forums member noticed the change in a Toyota Tundra with a...
iOS 19 visionOS UI Elements

iOS 19 to Have Some of the 'Biggest' Design Changes in iPhone's History

Sunday March 16, 2025 10:35 am PDT by
Apple is planning some of the "biggest iOS and macOS redesigns in its history," according to Bloomberg's Mark Gurman. In his Power On newsletter today, Gurman reiterated that iOS 19 will have a visionOS-like design with more transparent interfaces:The new interfaces will adopt the design principles introduced in visionOS, the software for Apple's Vision Pro headset. That includes greater...
iPhone 17 Air Size Feature

Ultra-Thin 'iPhone 17 Air' Rumored to Include These 12 Features

Saturday March 15, 2025 10:50 am PDT by
While the so-called "iPhone 17 Air" is not expected to launch until September, there are already plenty of rumors about the ultra-thin device. Overall, the "iPhone 17 Air" sounds like a mixed bag. While the device is expected to have an impressively thin and light design, rumors indicate it will have some compromises compared to iPhone 17 Pro models, including only a single rear camera, a...
apple surveyor app

Apple Launches 'Surveyor' App for Apple Maps Data Collection

Friday March 14, 2025 10:38 am PDT by
Apple today launched a new app called Surveyor, which is designed to allow users to collect data like images of street signs and roadside details to improve Apple Maps. The app is not public facing and appears to be for use with companies that Apple partners with to assign mapping tasks. Downloading the app and opening it up directs users to "Open Partner App" to choose a task. Tapping on...
Apple Intelligence Comes Under Fire Feature

Apple Reassures Siri Team Members Feeling Disappointed and Embarrassed by Apple Intelligence Delay

Friday March 14, 2025 11:45 am PDT by
Apple is reassuring employees on the Siri team who may be feeling demotivated by the recent Siri delays and the bad press surrounding the company's decisions, reports Bloomberg. In a Siri team meeting, Apple senior director Robby Walker acknowledged that employees might be feeling "angry, disappointed, burned out and embarrassed" following the Siri delay, but he praised the hard work of...
iOS 18

12 New Things Your iPhone Can Do in iOS 18.4

Monday March 10, 2025 9:28 am PDT by
Apple is set to release iOS 18.4 in early April, bringing further refinements to Apple Intelligence features, a neat new capability to iPhone 15 Pro devices, new emoji, and more. While not quite as packed with new features as Apple's preceding iOS 18 point releases, iOS 18.4 still introduces enhancements that aim to make your iPhone smarter and more intuitive. Below, we've listed 12 new...
Sad Siri Feature

Kuo: Cook Should Personally Address Siri Apple Intelligence Failure

Thursday March 13, 2025 4:02 pm PDT by
Apple made a major misstep with the way that it handled the delay of Apple Intelligence features for Siri, Apple analyst Ming-Chi Kuo said today. Announcing the delay through a press statement was a bad decision, and Apple should instead have gone through official channels. Kuo referenced the well-known "Antennagate" PR crisis when the iPhone 4 launched in 2010, and the way that then Apple...

Top Rated Comments

Small White Car Avatar
168 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
168 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)
zzLZHzz Avatar
168 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
168 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)
linuxcooldude Avatar
168 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
168 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)