True price of electronic luxuries

The pledge by Foxconn to raise the pay of its Chinese workers will not see the prices of gadgets soar, as parts and not assembly are the worry for firms, write Joe McDonald and Michael Liedtke

CONSUMERS won’t have to pay more for iPads, iPhones, and other popular electronics despite a Chinese company’s pledge to trim work hours and raise wages for its assembly workers.

Even though take-home pay has been steadily growing before this week’s pledge, labour expenses remain a small portion of the total bill for most gadgets made in China.