There was speculation yesterday that the cost to build an iPhone would be increasing, and that Foxconn was expecting to pass along the increased costs directly to Apple. Alarmists were a little bit paranoid that it could mean that the retail price of the device would also increase, passing the difference directly to consumers.
Today there’s confirmation in Digitimes that Foxconn is facing increased labor and component costs, and Foxconn is hoping companies will share the burden. It has also opened the doors for some competition in the market, with BYD and Compal Communications looking to swoop in and steal some of the contracts.
There’s no official word if Apple has decided to re-negotiate contracts, or if they plan to explore their options. Actually, outside of being a company that works with Foxconn, there’s no direct relationship between increased pricing and Apple mentioned by any of the sources. Increased iPhone prices have been inferred, so take it for what it’s worth.