Apple secured a 'zero profit' deal to receive iPhones from Chinese technology manufacturer Foxconn, according to a worker rights activist group, which has linked the factory's poor wages and working conditions with a number of young worker suicides.
Apple, the world's biggest technology company by market capitalisation, and Foxconn made headlines after a number of young workers committed suicide, which labour groups and unions have attributed to the long hours of repetitive work for very low income.
"Industry sources suggest that Apple awarded 2009 iPhone orders to Foxconn when Foxconn agreed to sell parts at 'zero profit'," Hong Kong-based Students and Scholars Against Corporate Misbehavior (SACOM) wrote in an open letter to Apple chief Steve Jobs. "Under the direct pressure of Apple and other buyers, Foxconn pays production line workers at its Shenzhen plant only 900 yuan (£90) a month for a 40-hour week. This subsistence level wage is not enough to meet workers' needs and compels workers to work up to 100 hours of overtime a month."
For more on this story, see Foxconn makes no profits on iPhones: activists on ZDNet Australia.