Consumer Electronics

Apple Starts Foxconn Investigation

Plagued by bad public relations, and online petitions about how the labor at its suppliers in China is treated, Apple (NASDAQ: AAPL) started an investigation into huge supplier Foxconn. It is not clear where Apple could move its parts and assembly capacity because of Foxconn’s size, the logistics of the US firm’s supply chain, and the potential rise in costs of goods sold for the iPhone and iPad. Apple sold 37 million iPhones in the last quarter

Apple

announced that the Fair Labor Association will conduct special voluntary audits of Apple’s final assembly suppliers, including Foxconn factories in Shenzhen and Chengdu, China, at Apple’s request. A team of labor rights experts led by FLA president Auret van Heerden began the first inspections Monday morning at the facility in Shenzhen known as Foxconn City.

FLA will do independent interviews of a large number of Foxconn employees.

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