Foxconn Electronics, the component manufacturer for Apple's iPod, denied allegations that the company's factories were "sweatshops". The company cited "huge discrepancies between the truth and the claims in the report."

Last week, UK-based The Mail reported that iPods were being made in Chinese factories where the employees worked under harsh conditions. According to the allegations, one factory at Longhua employed 200,000 workers each working 15 hours a day for US$50 monthly. During off-hours, these workers lived in rooms which housed 100 people each.

Foxconn said its workforce is only about 160,000 employees worldwide. The company maintained it abides by the employment law in China. Furthermore, Foxconn issued a statement saying it has continued to make improvements to workers' living conditions, providing safe and well-equipped dormitories complete with free laundry service, sports facilities, libraries, and other facilities.

Foxconn is  the largest manufacturer of PC connectors in Taiwan, and a leading manufacturer of connectors and cable assemblies in the world. In addtition the company also manufactures enclosures, primarily for desktop PCs and PC servers.