Foxconn share prices have jumped by a huge 31.9 per cent after rumours began circulating that the electronics manufacturer would be producing the next iPhone, winning a big contract bidding war with other potentials. This despite the fact that just two weeks ago it admitted to using child labour.
This increase in stock value has meant an over all growth in company value by over half a billion pounds. However this latest boost still leaves it down almost 28 per cent this year, according to Sky, thanks to the multiple negative stories that have come out about it. The past few years have seen the company dealing with employee suicides, reports of labour practice breaches and more. We reported recently how a man injured in an industrial accident, had his family told by Foxconn that they should move him to a poorer area where he was supposedly recruited.
None of this stopped the company’s profits however, which were announced a few days ago as having jumped 140 per cent.
KitGuru Says: I think I’ve said it before, but I’m amazed how company’s keep working with Foxconn after all its negative publicity. If this was a British firm it would have been run out of business, but because of its geographical location Foxconn continues to thrive. The only way to make a difference is to vote with your wallets.