Apple Investigating Asian Contract Manufacturer Allegations

Like most electronics companies, Apple contracts with suppliers to manufacture its products. The manufacturing suppliers are mostly in Asia and they pay very low wages as compared with those in the U.S. to keep the costs as low as possible. This is the main reason why electronics products are so affordable in the U.S. and other regions. While wages may be low, they must be taken in context with the local economy. Low wages by U.S. standards may be quite reasonable in the context of the local economy. Apple has an Apple Supplier Code of Conduct (PDF) which, if followed by its contract manufacturers, ensures that their labor force and the local environment are not mistreated.

Apple, according to news reports, is looking into allegations of worker exploitation at the Hon Hai factory in China that produces products under the Foxconn brand. The factory produces iPod nanos for Apple. [Bill Fox]