"In fairness, these evils are not unique to Apple. The same factories churn out electronics for Dell , Acer, Lenovo, Nintendo, Panasonic, Samsung, IBM, Cisco, Motorola, Amazon [GE, RIM, Microsoft] and so on."
…from:
http://adage.com/article/bob-garfield/bob-garfield-rot-apple-s-core-sicken-…
…but it could have been from many other 'net sites as we'll….
The Rot at Apple's Core Could Sicken Consumers -- and Its Business
They May Be Unable to Stomach Any More Awful News About Labor Practices
By: Bob Garfield Published: January 27, 2012
A correction has been made in this story. See below for details.
Bob Garfield
Let's start by talking about how great Apple is.
Apple is sooooo great!
This week its fourth-quarter earnings were announced. On the strength of phenomenal sales of 15 million iPads and 37 million iPhones, the company recorded profits of $13.1 billion on revenues of $46.3 billion.
In cash. In three months. This windfall helped Apple's stock price, which surged enough to nudge the company past a little boutique called Exxon-Mobil as the largest industrial corporation in the world.
Plus, the iPad is super cool, and the iPhone is, too. And, duh, iTunes! And the biography of Steve Jobs, may he obsess in peace, has been on the bestseller list for three months. No wonder President Barack Obama, in his State of the Union Address, singled the company out as emblematic of all we as a nation should aspire to:
"You see, an economy built to last is one where we encourage the talent and ingenuity of every person in this country. That means women should earn equal pay for equal work. It means we should support everyone who's willing to work, and every risk-taker and entrepreneur who aspires to become the next Steve Jobs."
Now, the mood in Washington is such that if Obama admires the weather, the Republicans will disagree; they will call the weather a path toward socialism. But not Tuesday. In the GOP response to the president's address, Indiana Gov. Mitch Daniels got his licks in, but he also raced to bow at the altar of the sainted one.
"Contrary to the president's constant disparagement of people in business, it's one of the noblest of human pursuits. The late Steve Jobs -- what a fitting name he had -- created more of them than all those stimulus dollars the president borrowed and blew."
[,,,]
Since then, however, there have been what the TV news anchors call "new developments." One is a series of New York Times stories documenting how Apple's manufacturing jobs -- 700,000 of them -- are provided by contractors overseas, chiefly China, and how workers there labor for long hours at vanishingly low wages in hazardous conditions. Perhaps Mitch Daniels should call the late CEO Steve Offshore Jobs.
Then came a long segment on "This American Life" by monologist Mike Daisey, who infiltrated Shenzhen, a Chinese factory city and Apple contract-manufacturing plant, to find out where his iPad came from. There he discovered inhuman dormitory conditions, brutal shop-floor hazards including haphazard use of the neurotoxin n-hexane to spray-clean tablet screens, child labor and a huge net dangling over the shop floor to stem the tide of worker suicides: at least 12 at the plant in 2010 alone. When a worker complained to the local "labor board," she was promptly fired and blacklisted -- in writing, with no attempt to conceal the act:
"In a fascist country run by thugs, you don't have to be subtle," Daisey said. "You can say exactly what you mean. The sheet is very clear that it comes from the labor board, and it says right across the top, 'The following is a list of troublemakers. If any of them are found in your employ, dismiss them immediately.' And then there's just column after column after column of names. Page after page after page of them."
In fairness, these evils are not unique to Apple. The same factories churn out electronics for Dell , Acer, Lenovo, Nintendo, Panasonic, Samsung, IBM, Cisco, Motorola, Amazon and so on. And over time such enterprise will create a middle class in China, and other developing countries, helping to eradicate grinding property -- and new markets for our own export goods. In the meantime, however, Apple and the rest are raking in billions of dollars of profits by relegating foreign workers to conditions we wouldn't tolerate in our own prisons. The heroes of free enterprise were caught, Red China-handed, being themselves.
And the world is beginning to figure it out, because in the digital age all corporations live in glass houses, and people in glass houses shouldn't clean the windows with n-hexane. Furthermore, in the social-media age scandal is traded back and forth, perpetually, at the speed of send. Perhaps many Apple aficionados are prepared to strike a Faustian bargain -- vague tugs of guilt in exchange for the coolest stuff ever -- but some will not. The backlash is no doubt under way. In the Relationship Era, you can surely benefit from 3.27 million spontaneous expressions of affection, but just ask Johnson & Johnson. It can all very quickly turn to dust.
Here is but one blog post I located in the wake of recent news coverage:
"I don't think I will be an Apple customer anymore! I would rather inferior technology."
The headline on the post? "Apple sucks!"
…from:
http://www.engadget.com/2012/01/24/apple-q1-2012-iphone-ipad-ipod-mac-hardw…http://www.apple.com/pr/library/2012/01/24Apple-Reports-First-Quarter-Resul…
Apple's Q1 hardware sales: 37 million iPhones, 15.43 million iPads, 5.2 million Macs, 15.4 million iPods
By Donald Melanson<http://www.engadget.com/editor/donald-melanson> [cid:3F2F7D44-B595-4DE1-97D6-B56C99ED267F] <http://www.engadget.com/editor/donald-melanson/rss.xml> posted Jan 24th 2012 5:30PM
[cid:ED442CBB-709C-432B-8124-48243D93A967]
[cid:6444D9D3-340E-49A9-BF25-F6D96CE470D3]<http://www.engadget.com/2012/01/24/apple-q1-2012-iphone-ipad-ipod-mac-hardw…>
We touched on the numbers in our report<http://www.engadget.com/2012/01/24/apple-announces-q1-earnings/> on Apple's Q1 earnings, but the company's throwing out a lot of "record" figures so we thought we'd take a moment to focus on just how its hardware sales stack up. The standout number is, of course, the 37.04 million iPhones sold during the quarter, which is up 128 percent from the same quarter a year ago (and up from 17 million in the previous quarter, a jump of 117 percent). That notably puts Apple back ahead of Samsung, which sold a total of 35 million smartphones in its most recent quarter<http://www.engadget.com/2012/01/05/samsung-q4-2011-earnings/>. And as if that wasn't enough, Apple's Tim Cook also said on the company's earnings call that it could have sold even more if it had more supply.
iPad sales also set a new record with 15.43 million units sold during the quarter, which is a 111 percent jump from the 7.3 million sold a year ago, and a 39 percent increase from the 11.1 million moved in Q4 2011. Once again, however, iPods are the one category that continues to decline in the face of the growth of smartphones. Apple sold a total of 15.4 million iPods -- over half of which were iPod touches -- which represents a 21 percent decline from the 19.4 million sold a year ago. The holiday shopping season did boost sales considerably from the 6.6 million sold in the previous quarter, though.
Mac sales were also on the upswing, totaling 5.2 million units -- a 26 percent increase year-over-year. Breaking things down further, that translates to 1.48 million desktops (including iMac, Mac Mini and Mac Pro), and 3.7 million laptops (including the basic MacBook, MacBook Air and MacBook Pro). As for the company's "hobby," the Apple TV, it rang up 1.4 million in sales for the quarter, and 2.8 million for the 2011 fiscal year. Fans of charts can get their fix after the break.
…from:
http://www.pcworld.com/article/248415/eu_electronic_retailers_must_take_bac…
EU Electronic Retailers Must Take Back Old Equipment Without Charge or Sale
By Jennifer Baker<http://www.pcworld.com/author/Jennifer-Baker>, IDG News<http://www.idgnews.net/> Jan 19, 2012 12:01 pm
The European Parliament on Thursday approved plans to force large electronic retailers to take back old equipment.
The new rules are as part of a shakeup of the Waste Electrical and Electronic Equipment Directive and will gradually come into force over the next seven years.
Only one third of electrical and electronic waste in the European Union is separately collected and appropriately treated and the revised directive will increase the collection target from its current 4 kilograms per capita to around 20 kilograms per capita by 2020. By 2020, it is estimated that the volume of electronic equipment will increase to 12 million tons and the E.U. authorities want to see 85 percent of that collected and treated.
The retailer take-back plan means that larger electrical goods stores, with a shop space of 400 square meters or larger, will have to accept small electronic items, such as mobile phones, free of charge, without making users purchase a new product.
Welcoming Thursday's vote, E.U. Environment Commissioner Janez Potočnik said: "Proper treatment of WEEE is important to prevent harm to human health and the environment, and its systematic collection is the precondition for professional recycling of the valuable raw materials like gold, silver, copper and rare metals, contained in our used TVs, laptops and mobile phones."
The revised directive also includes a clampdown on illegal exports of waste electronic equipment. Equipment that is no longer under warranty can only be exported to non-OECD countries if it has been certified to be fully functional and sent properly.
"It is long overdue that we stop making developing countries the dumping ground for our hazardous waste," said Green member of the European Parliament, Michalis Tremopoulos.
Follow Jennifer on Twitter at @BrusselsGeek<http://twitter.com/BrusselsGeek> or email tips and comments tojennifer_baker(a)idg.com<mailto:jennifer_baker@idg.com>.
…from:
http://online.wsj.com/article/SB10001424052970204409004577158764211274708.h…
* JANUARY 14, 2012
Apple Navigates China Maze
Firm Details Labor Conditions as Unruly Fans Mar Beijing Debut of New iPhone
Read more: http://online.wsj.com/article/SB10001424052970204409004577158764211274708.h…
By JESSICA E. VASCELLARO<http://online.wsj.com/search/term.html?KEYWORDS=JESSICA+E.+VASCELLARO&bylin…> and OWEN FLETCHER<http://online.wsj.com/search/term.html?KEYWORDS=OWEN+FLETCHER&bylinesearch=…>
Apple<http://online.wsj.com/public/quotes/main.html?type=djn&symbol=AAPL> Inc. is increasingly finding itself pinched between the promise and perils of doing business in China.
That challenge was thrown into sharp relief by a pair of developments Friday. Under pressure from activists in the U.S. and abroad, the company released a 27-page report detailing working conditions throughout its supply chain, which sprawls throughout Asia, but especially China.
The report followed an unexpected fracas outside an Apple store in Beijing, after fans couldn't get their hands on the latest iPhone.
[cid:22CDC884-39CD-4187-8651-009FC08349C2]<http://online.wsj.com/article/SB10001424052970204409004577158764211274708.h…>
Apple disclosed a comprehensive list of its major suppliers for the first time, along with a detailed report on factory inspections. Jessica Vascellaro has details on The News Hub. Photo: Reuters
Local police ordered Apple to close the store, saying the situation wasn't safe. Apple later said it would temporarily halt sales of all iPhones in its five retail stores in mainland China.
Chinese authorities have looked unkindly on such disturbances, and Apple executives scrambled to control fallout from the incident, which was shown in videos around the world.
In one of his first interviews as chief executive, Apple Chief Executive Tim Cook said the flap was "unfortunate" and "we will learn some things for the future and change some things." He added that safety was of the "upmost importance" to the company.
The Chinese market is of growing significance to Apple. Last fall, it said China was its fastest-growing region, with around $13 billion in annual sales.
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[applejh]
Reuters TV/Reuters
Apple said it has set new requirements for how suppliers handle combustible dust after an explosion, above, at a Foxconn plant last year.
Demand for the company's iPhones, iPads and Macs reached such a fever pitch in 2011 that some 40,000 people were visiting its Beijing and Shanghai stores each day.
But deepening ties to China have brought a new set of complications. In 2009, Apple chose to start selling the iPhone in the country without Wi-Fi wireless Internet capability to comply with government regulations.
At the same time, Apple has faced Western and Asian activists, who have complained about conditions at the company's Asian suppliers.
In the interview, Mr. Cook said improving working conditions has long been a corporate priority. He said he believes Apple is "raising the bar" for the industry.
Apple's supplier report could pique Chinese authorities, who have long sought to stem criticism about business practices there.
Apple's Report Card
Findings from the firm's annual audit of its suppliers
62% weren't compliant with working-hours limits.
32% weren't compliant with hazardous-substance management practices.
35%failed to meet Apple's standards to prevent worker injuries.
(Source: Apple's report)
The report is the most comprehensive on the subject in Apple's history, based on 229 audits of factories that do work for the company, the world's second-largest by market capitalization.
Apple said that at its direction, suppliers have stopped discriminatory screenings for medical conditions or pregnancy. Apple also said it found 112 facilities that weren't properly storing, moving or handling hazardous chemicals.
Apple said it was taking new steps to better monitor and improve conditions at factories, including increasing audits in Malaysia and Singapore and expanding its worker education program.
Nearly a third of its suppliers didn't abide by Apple's standards on wages and benefits, the company said. The audits also found five facilities that employed underage workers.
Related Video
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Google is trying to win over Chinese consumers with services that don't require official censorship. Kelsey Hubbard interviews WSJ's Amir Efrati. Photo: Associated Press.
"I have spent a lot of time in factories over my lifetime and we are clearly leading in this area," said Mr. Cook, who previously oversaw the company's supply chain as chief operating officer. "It is like innovating in products. You can focus on things that are barriers or you can focus on scaling the wall or redefining the problem."
Chinese government ministries weren't immediately available for comment on Friday.
While Apple has occasionally divulged selected suppliers, the new list covers those 156 companies that represent 97% of its materials, manufacturing and assembly spending.
Apple's List of Suppliers
View Document<http://online.wsj.com/article/SB10001424052970204409004577158764211274708.h…>
[[docid=120113175516-d3c9ff54b84b4b7a850e59158458406f|file=applesupplierlist]]<http://online.wsj.com/article/SB10001424052970204409004577158764211274708.h…>
Report on Supplier Compliance
View Document<http://online.wsj.com/article/SB10001424052970204409004577158764211274708.h…>
[[docid=120113175541-0f6d14e42cad4b58a7bf52d180d2957c|file=appleprogressreport]]<http://online.wsj.com/article/SB10001424052970204409004577158764211274708.h…>
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San Francisco Apple store
It includes a range of global technology companies, such as Sony<http://online.wsj.com/public/quotes/main.html?type=djn&symbol=SNE> Corp. and Intel<http://online.wsj.com/public/quotes/main.html?type=djn&symbol=INTC> Corp., along with lesser-known names like Tianjin Lishen Battery Joint-Stock Co. Ltd.
The report makes several references to one of Apple's biggest manufacturing partners, Hon Hai Precision Industry Co. The company, also known as Foxconn, grappled with a spate of employee suicides at a facility in Shenzhen, China, in 2010 and an explosion that killed four workers and injured 18 at plant in Chengdu, China, last year.
Apple said it has established new requirements for firms dealing with combustible dust after the blast in Chengdu and an explosion at another supplier's factory in Shanghai that injured 59.
Apple also said it is joining the Fair Labor Association, agreeing to outside monitoring of its suppliers.
"Working hours is a complex issue," said Mr. Cook, saying he was confident the company can improve in the area by "monitoring these plants at a very, very micro level." "I know this is a journey," he said.
Aron Cramer, president of BSR, a San Francisco non-profit that works on environment and human rights issues, said Apple, one of its members, isn't alone in issuing detailed working conditions reports. But he said it is doing so from a position of particular scrutiny. "There's interest in everything they do," he said.
Meanwhile, Apple was still grappling with the fallout from the Beijing melee.
Related Video
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Google, which pulled its Web-search engine out of mainland China two years ago after a confrontation with Chinese authorities over censorship, has renewed its push to expand there, Spencer Ante reports on Markets Hub. (Photo: Reuters)
High-profile launches for Apple products often come with massive crowds and, occasionally, unruliness. In the interview, Mr. Cook said Apple had "taken all necessary precautions." "I think we were all taken by surprise," he said.
Chinese state media reports blamed the incident on iPhone scalpers. On Friday morning, authorities began forcing people away from the store and blocking the cameras of reporters who had shown up to cover the event. Men with megaphones began declaring that sales wouldn't start and people should leave.