Higher Labor Costs at Foxconn May Prompt Price Hikes from HP, Dell

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Ghok

Meg Whitman, who spent 144 MILLION dollars of her OWN money to run for Governer of California in 2009? I don't know what you're making at HP, but are you sure you can't absorb some of those costs instead of passing them onto the consumer? Seems to me you might!

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JohnP

Heh. There is a conspiracy theory going around that The Fed created inflation in China and other countries by printing a boatload of US dollars during QE and QE2 just so US trade imbalances would be better and less jobs would be farmed out. China (the fools) peg their money to the US dollar so when more dollars are printed, the more yuan need to be created. Looks like it is working (until inflation hits the US that is).

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Mizufall

I hope those workers do get paid more. I really wouldn't mind paying a bit extra.

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jesse_n_sf

So this doesn't affect Apple?

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Engelsstaub

I'm only speculating but I don't think it'll affect Apple that much as their profit-margins and price-points leave plenty of room for absorption.

Like I said: just a guess. Could be wrong. We'll see...

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Zoandar

In the corporate mindset, as long as they dangle a dollar on a stick in front of you, the lowly employee, you will chase after it until you die. It doesn't matter if you are already working double shifts. They expect you to have the same unbridled greed that drives them. Been there too many times. The only escape is retirement. :-) I've worked beside many people who sadly adhered to chasing after that dollar. Many of them are dead now.

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ApathyCurve

I deal in fire protection systems and products. About two years ago, my company designed and installed systems for an assembly facility build-out for Foxconn. Do you know where it was located? In an old Compaq assembly building at the HP headquarters campus in Houston, Texas. You can throw a rock from the assembly building and hit the corporate towers. Everyone who works in that assembly building is a local and, from talking to them, seem quite happy with their jobs.

I'm not saying HP is a good company or a bad company, (though I do know several people who work for them in the upper levels of IT). It's just something to think about.

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JohnP

There is this mindset that all US outsourcing goes to China and India. Look it up, the country with the largest number of jobs from the US is...Canada. China next? Nope, Germany. Then China? Nope south of the border, Mexico. Most of these jobs are also tied to a US company having a division or offices there.
I worked for HP test and measurement. I had a product that I supported that was developed and made in Germany and is a hot seller. Yet that is considered outsourcing.

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Ghok

I can only speak for myself, but I don't really mind outsourcing if the work standards are comparable. That way, if some other country gets the job, a lot of if it has to do with just how good they are at the job... not primarily how much money they save. Different countries and companies can be good at different things, and if that's why they get the job, that's fair. If it's because they don't mind working in poverty and terrible conditions? I don't see how that's good for anyone.

It's kind of like illegal immigrants. If you HAD to pay illegal immigrants the same that you paid legal residents for the same work, there would be little reason to hire them, and they wouldn't take any jobs away from people who want to work legally.

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Hey.That_Dude

Sounds like someone is b!tching about taking a hit on their bottom line. I think you should absorb the entirety of the cost and not pass any of this on to consumers because we already are paying through the nose for a 500 GB HDD. Anymore price increase and sales will fall through the floor.

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Tenhawk

Everything I've seen or read about the situation seems to imply that money isn't the issue with Foxconn and similar sites, but rather overall working conditions. They are paid a pittance by our standards, it's true, but it's still a lot more than the average person in the area.

I was given to understand that the major issues were back to back, and sometimes to back to back, shifts and other things that generally made for poor working conditions. I know you can put up with a lot of crap for a better salary, I've done it myself, but there comes a point where it doesn't matter what you're paid you just go nuts if things are bad enough.

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