Report: Foxconn to Raise Product Prices

From DailyTech: To help make up the financial difference after increasing employee wages, contractor Foxconn said it plans to increase prices – but the increase may not translate to higher consumer product pricing.

Although Foxconn partner companies will need to absorb the cost, consumers may not notice the change due to such a competitive consumer marketplace. The price of consumer gadgets must remain competitive in North America and Europe, so manufacturers will not be able to significantly increase prices.

This issue was first mentioned last month, but was not mentioned again since then.

During a recent press conference, C.L. Huang, VP of Foxconn's parent company, Hon Hai Precision Industry, said the price increases will depend on the individual product.

In its facilities, Foxconn manufacturers the iPhone and iPad, Nintendo Wii, Microsoft Xbox 360 and other popular consumer gadgets. The company is now the largest contract manufacturer in the world, and continues to mass produce large shipments of products for lower prices.

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