Apple Is Dumping Cheap Taiwanese Manufacturer, For A Cheaper One

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Apple Is Dumping Cheap Taiwanese Manufacturer, For A Cheaper One

Apple is heading for divorce. Foxconn, the world's largest electronics manufacturer has long made Apple products (and its cheap labor is largely credited as part of the secret to Apple's success). Foxconn has also long brought bad publicity to the Cupertino company.

Foxconn, based in Taiwan - has repeatedly been accused of exploitative labor practices. Last September, when Apple was unveiling the iPhone 5, reports surfaced of Foxconn using 'forced student labor' in its factories that built the device. In 2010, 14 workers committed suicide in the Foxconn compound nicknamed "iPod city" where the workers worked and lived. The factory responded by building "suicide nets" around its buildings. 

Now the real question is: is Pegatron, the new firm that Apple's named as Foxconn's de facto successor, any better? It's not clear how their labor practices differ, but Apple's empahsis, once again, is on keeping labor and prices cheap.