another blow for embattled ipad maker foxconn - home appliances manufacturers in china

The first is suicide.
Then there was a deadly explosion.
Now, the Taiwanese company that fought under the shadow of Gao Tai
Personal data customers like Apple are facing another blow.
Lost its Bluechip status.
Foxconn International will be removed from the Hong Kong benchmark Hang Seng index on Tuesday.
Shares of money-
Since the announcement of the move in May 12, loss-making companies have fallen by 10%, and losses could fall further as funds tracking the 46 components of the index adjust their portfolios.
The plight of Foxconn highlights the pressure of China's economic downturn.
As the country's deep and cheap labor reserves begin to dry up, cost makers are struggling to cope.
Foxconn sees itself as one of the many "hidden dragons --
Large but lesser-known companies that mainly produce the world's largest brands of electronics, clothing, toys and household appliances in China.
For example, few people are familiar with Yuyuan industrial holdings, but most people have a pair of shoes.
The Taiwanese company produced the world's third-largest shoes for brands such as Nike, Ting Lan and Rockport.
Unlike its peers, Foxconn is now a familiar name in many parts of the world, although there are many wrong reasons for its rise.
More than a dozen suicides and 2010 suicides in 2009 raised concerns about Foxconn's vast "factory town" working conditions.
Foxconn initially shrugged off suicide, but later raised wages and cut hours.
It is usually immigrants from poor Chinese provinces.
It also set up a 24-
The hour advisory center installed a suicide net in the factory living area of the Shenzhen factory and invited monks to ease tensions.
However, Hong Kong monitoring groups, students and academics reported last month on corporate misconduct (Sacom)
He said that while Foxconn has fulfilled some of its commitments, working conditions are still poor, especially at newer factories in western China.
Sacom's factory in Chengdu specializes in the production of Apple products, and it is reported that workers complain about dust, skin allergies, eye pain, poor ventilation, and long hours of work, wrong calculation of wages.
On May 20, an explosion at the Chengdu factory killed three people, highlighting concerns about factory safety.
Rising wages after the suicide and falling prices for smartphones, laptops and other gadgets hurt Foxconn's financial performance. Its Hong Kong-
Foxconn International reported a loss of $220 (£135m)in 2010.
"2010 is an extremely difficult year for us," the company said in its annual report . ".
Like other manufacturers, it is moving production to inland provinces in China, a double challenge
Wage growth in the Pearl River Delta region-
Traditional Chinese manufacturing center.
Foxconn's Taiwan-listed company, Hon Hai Precision Industries, has performed only a little better, with 2010 of earnings growing slowly.
According to Deutsche Bank, Hon Hai's labor costs rose by more than 30% in 2010.
Interest rates are expected to remain in 2011 until 2012, when they are relaxed to 20%.
But analysts say the company should perform better as it completes the transfer of its business to a factory in Sichuan, western China, where wages are down by about 15%.
It also builds a factory in Henan.
Foxconn executives also said the move could help prevent suicide as workers will be closer to home. towns.
Some observers say Foxconn is under greater scrutiny than other manufacturers because of its high
But its practice is no worse than the vast majority of factories in China's manufacturing center.
"They pay workers wages and overtime pay on time according to regulations, which is why workers always queue up to work there," said Jeffrey crosso, A spokesman for the China Labor Bulletin told Bloomberg Businessweek last year.
Other companies are also facing labor unrest.
Workers at the Honda factory in Guangdong province went on strike on May 2010 to raise wages.
In a survey released by Oxfam Hong Kong in 2010, Foxconn ranked sixth among the 42 companies that made up the Hang Seng index.
Oxfam praised Foxconn for using 1% of its profits for charity and emphasized full monitoring of the supply chain. Low cost?
The Hang Seng index now contains only one exit-
Focus Company-
Helping Li Feng of big companies like Wal-Mart
Wal-Mart purchases cheap goods.
Shoe maker Yue Yuan lost blue-
Chip status in 2009.
Insurance company AIA and diaper maker Heng 'an will replace Foxconn.
Both companies use China as a market for their products, not as a cheap outlet.
Foxconn itself is also considering such a shift in focus and plans to work with German retailer Metro to open 10 large electronics stores in the Shanghai region by the end of 2011.
For a contract manufacturer with no Chinese cutting experience, this is a risky strategy
Retail market-
But rising wages for Chinese workers will make the ipad, laptops and consoles produced by Foxconn more affordable.