It looks like Apple (APPL) has had a moral awakening recently in the big tech space. The iPhone maker recently announced that it’ll be placing one of its manufacturer’s factories in India on probation after an inspection found that worker dormitories and dining rooms did not meet required living standards.
The manufacturer, Foxconn, was in the news earlier this month as well when protests erupted due to over 250 women at the same factory coming down with food poisoning caused by the factory’s food.
Although the closure’s impact is minimal on iPhone volumes, the company needs all the factories it can get — Smartphone-maker Xiaomi is coming in all guns blazing at the Cupertino giant, with its CEO noting (at Xiaomi’s latest press conference) that he’s ‘formally eyeing Apple.’ This comes after the fact that Xiaomi became the second-largest smartphone maker in the world during Q2 2021. Look out, Tim Cook!
Why it matters
Apple’s commitment to working conditions at its factories puts it in the good books when it comes to ESG considerations. Especially after it was in the press a few years back regarding poor conditions at its Chinese plants. Apple stock has been 38.6% up for the year.
