Apple [AAPL] appears to have responded to the problems found in factories where the Apple iPad is built. Recently there has been a number of suicides and although it’s difficult to judge the exact cause of the suicides, Apple has stepped up to offer 0.7% of iPad profits to those assembling the device. This will bring about a 20% raise to each worker on the line.
A small cut to Apple’s profit margin may make a big difference in workers’ lives
As well as cutting 0.7% of it’s profits for iPad assemblers, it is also believed that iPods and iPhones workers will also get a rise.
Apple has it’s products mainly built by Foxconn where other companies products are also built from the likes of HP, Dell, Nintendo, Sony and Microsoft to name a small group of them. It isn’t clear if Apple will set a standard here for other companies to follow or if they will be the only company to do this.
The move will be taking the labor cost for the iPad from 2.3% to 3%. Apple are believed to make around $200/iPad sold so it wont eat in to the margin too much.
Via: Daily Tech
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