At the beginning of the year, concerning reports about the appalling working conditions in China's Foxconn factories surfaced to be met with worldwide outrage.
Now both companies, Apple and the Foxconn Technology Group, need to take steps to mend their bruised public image. Foxconn had to reduce working hours in the factories, raise wages and hire thousands of new workers to meet the supply demands.
Foxconn CEO, Terry Gou, was reluctant to detail to the media the costs of improving labour conditions in the Chinese facilities. He explained, however, that Foxconn is going to split the costs with its main partner, Apple.
"We've discovered that this (improving factory conditions) is not a cost. It is a competitive strength. I believe Apple sees this as a competitive strength along with us, and so we will split the initial costs," said Gou to Reuters reporters earlier this week.
Foxconn is also a supplier for Microsoft and Nintendo and other major tech companies around the world. The manufacturing group employs a quarter of a million people in China alone. Other facilities are in Brazil, where workers have also threatened to go on strike due to the hard working conditions.