U.S.-based watchdog group China Labor Watch (CLW) on Monday announced that its investigators had uncovered labor violations in three factories of Pegatron Group. Apple has steadily increased its manufacturing contracts with Pegatron, a Foxconn competitor. CLW's report suggests that Apple has benefitted indirectly from Pegatron's labor violations, which the group says lowers Pegatron's costs. (Here's a PDF of the full report.)Related StoriesWall Street Beat: Mobile is key to tech earningsiPhone 6 rumor rollup for the week ending July 26