Apple Inc is moving strong but the Chinese company instrumental in helping the company succeed is in crisis. Foxconn, one of Apple?s key iPad suppliers came into light when it had a rash row of employee suicides earlier last year, following a factory blast.
Foxconn had lost close to 34 percent of its market value last year and this led to Hang Seng?s decision to drop the manufacturer from its Hang Seng index in Hong Kong. “When deciding which companies are to be added to or dropped from the HSI, companies are evaluated on several factors, including their financial performance, their market capitalization and turnover,” an index spokesperson said.
Foxconn is at the moment caught in rough waters as the low cost resources have begun scaling higher on the scale. ?The change in wage policy in China in 2009 and the subsequent significant higher export prices brings this status quo to an end,? Terry Gou, chairman of Foxconn?s parent company explains the situation.