Hongfujin Precision Industry – which makes iPods under licence in Shenzhen – and China Business News said they had resolved their dispute.
In an article in the paper, Wang You claimed that the firm had mistreated workers on its iPod assembly line.
Following an inquiry, Apple found there had been no serious labour abuses.
But it concluded that there had been violations of contractual obligations, with many staff working excessive hours.
China Business News reported that workers on the assembly line had to remain on their feet for 12 hours a day and some had fainted as a result.
Allegations about working conditions at the factory were first made by a British newspaper, The Mail on Sunday, which said staff were working 15-hour days and were paid less than the minimum wage.