Hon Hai Precision Industry, better known as Foxconn, will raise product prices to make up for salary concessions made earlier this year.
According to Citibank Analyst Chang Kaiwei, Hon Hai will boost sales performance by raising prices on several major clients' contract manufacturing. Amongst the companies that will be hit by higher prices are Apple, Microsoft, Nokia and Sony Ericsson. Hon Hai manufactures the massively popular Apple iPhones and iPads, in case you didn't know already.
Citibank further forecast that this would result in a very strong last quarter for Hon Hai, as well as a 30 per cent increase in sales value in 2011.
Hon Hai was named-and-shamed earlier this year due to a string of suicides amongst the factory rank and file, attributed to low salaries and even worse living conditions for on-site workers.
The decision is likely to have been made quite a long while back, but the way contract manufacturing works, it would've not been possible for Hon Hai to simply implement a global price hike and stick it to the clients. The price hike will begin from this month and if we're unlucky enough, it should hit the iPad and iPhone just in time for Christmas.