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Foxconn says Apple will help bear cost of better working conditions

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Terry Gou, the CEO of Foxconn, recently told reporters that Apple would split the costs of higher wages, more workers, and other improvements in working conditions.

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When Foxconn's first-quarter earnings results came out, analysts suggested that the cost of upgrading factories and offering wage increases had driven down the massive manufacturers' profits. But the company may also be getting some help from Apple. Foxconn executive Terry Gou recently told reporters in Shanghai that improving factory conditions "is not a cost. It is a competitive strength... I believe Apple sees this as a competitive strength along with us, and so we will split the initial costs."

Gou didn't disclose what kind of costs Foxconn and Apple were looking at, or how they'll be splitting them. However, if these increases are indeed affecting Foxconn's bottom line, Gou doesn't seem worried: he said that the company expected to reach its revenue growth target of 10 percent this year. Previously, Foxconn and Apple agreed to cut working hours to around 50 a week, hire "tens of thousands" of new workers, and raise wages by 16 to 25 percent after widespread criticism.