Apple’s Foxconn Flap May Pinch Contract Manufacturers
The fallout from the Apple supply chain flap with Foxconn will raise the costs associated with making electronics as contract manufacturers focus more on compliance, according to an analysis by IHS.
In its analysis, IHS likens the Fair Labor Association investigation of Apple’s Foxconn plants to the sweatshop issue in the apparel and footwear industry in the 1990s. The FLA found multiple issues in Foxconn plants that make Apple gear.
As a result, IHS said a chunk of the contract manufacturing sector’s $360 billion in 2011 sales may be at risk