Chinese Labor Wage Increases Could Raise Prices on Dell, HP Products

Written by John Ponio    Friday, 24 February 2012 16:08

Foxconn Logo

Rising labor costs in China could lead to higher prices from companies like Dell and HP, who are trying to decide if it's best to absorb the cost themselves or pass them on to us, the customers. Foxconn's factories, the ones in question, are having to raise their wages after all of the news of working conditions came out. Higher wages means the electronics coming out of Foxconn's factories are more expensive, which means Dell and HP have to pay more for them, which will most likely mean that we have to pay more for Dell and HP's products. HP CEO Meg Whitman said, "If Foxconn's labor cost go up, their product cost to us will go up. But that will be an industry-wide phenomenon and then we have to decide how much do we pass on to our customers versus how much cost do we absorb." It's hard to tell how much rising wage prices will affect the final product price, and even Dell and HP are having trouble figuring out what will happen. In the mean time, it might be best to buy that laptop you've been wanting sooner rather than later, as prices are probably going to go up. You can read more about the wage increases here