Chinese manufacturing costs likely to hit Apple, HP and other tech firms
The New York Times is reporting that Foxconn Technology -- a major manufacturer for Apple Inc., Dell and Hewlett-Packard products -- plans to cut costs by moving its operations to poorer sections of China and away from the country's electronics manufacturing center as the country faces worker shortages, rising wages and housing costs as well as a stronger currency, making exports more expensive.
Chinese companies operate on slim margins to be competitive and any increase can have a big impact. The Times reports that Foxconn has 800,000 workers in China to manufacture products for Apple, HP and Dell among other technology companies.
Foxconn already said it would pass along its workers' salary increase to customers, says eWeek.