The Foxconn strike and Apple’s reputation

by Di (Dina) Lu ~ October 5th, 2012. Filed under: Uncategorized.

The craze for the new iPhone is ridiculous these days. It was just two weeks ago when Apple’s iPhone 5 could be first held preciously in the hands of Canadian smartphone users.

But, Apple may no longer be gleaming with joy. Foxconn’s iPhone plant is “paralyzed” as thousands strike in central China due to rage over rigorous quality controls and demand that workers work through the holiday. The iPhone has already been short in supply, and the strike will most definitely contribute to the supply shortage.

Probably the most significant damage will be to Apple’s reputation. Customers, who perceive Apple to be that fresh, innovative company with quality gadgets will now see Apple through a new lens. They will think about the factory workers behind that brand, the workers who work long hard hours at low wages to produce some of the world’s most expensive gadgets. Through this, I am reminded of Nike and their deal with sweatshops.

All in all, the ethics of a company can affect the reputation and perception of the company. If it has good ethics, the brand will have a better reputation; if not, then it will be most likely be frowned upon.

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