Foxconn International Holding (FIH) has recently started negotiating with clients about increasing manufacturing quotes. In response, competitors such as BYD and Compal Communication are offering lower quotes to grab orders from clients that are unwilling to accept new quotes from Foxconn, according to industry sources.

Sources from handset makers pointed out that Foxconn is currently facing increased labor and component costs, and therefore is hoping its clients will help share some of its burden; however, some clients such as Nokia, Motorola and Sony Ericsson, which have multiple suppliers as well as their own plants, will be less willing to accept such demands.

A Foxconn spokesperson pointed out that most clients have already agreed to the new quotes, while some are still in negotiations. The spokesperson also refuted the sources claims about competition saying that since most handset makers are facing the same increases in labor and component costs as Foxconn, competitors are unlikely to drop their quotes for orders.