Apartment living in large metropolitan cities has always been difficult, especially when there is a direct relationship between income and living space but it would seem that Hong Kong takes this ratio to the extreme.
While America and the United Kingdom paid a heavy price (in terms of air pollution) during the industrial revolution (and still due to some point) it’s now China’s massive economic engine that is slowly killing the populous in Beijing and China’s other mega cities. The Atlantic has a great slide-show demonstrating the absolutely horrendous air quality that has gripped China since the beginning of the year. (partly due to weather conditions).
Source: The Atlantic
Source: Imgur
The Year of the Dragon (YOTD) is considered by many to be the luckiest within the Chinese Zodiac calendar. With this in mind, we wanted to make sure the AJ 2012 YOTD was special, and found inspiration in the number nine…
As Apple becomes more and more transparent with its 3rd party suppliers and manufacturing process (one of a handful) we are beginning to understand how Apple makes its legendary products. Marketplace’s Rob Schmitz recently visited a Foxconn factory that was making iPads for Apple and posted the below video showing the assembly process for Cupertino’s tablet but Schmitz’s article was mostly about the people behind the manufacturing.
…He (Rob Schmitz) didn’t meet anybody who was poisoned on the job. He didn’t meet any 13-year-old workers. Nobody he talked to had been hurt in an explosion. He says the stories he heard were more about China than Apple….
Now that the “New” iPad is out and about, the rumor mill has moved their attention to the “New” iPhone or iPhone 5 or 6th generation iPhone (Above image is a concept design) and what’s the best way to get info on Cupertino’s next handset – ask anyone slightly associated with Foxcomm. This week’s star reporter is South Korea’s Maeil Business Newspaper and the info came straight from the mouth of a Foxcomm HR official…..so it must be true. Here’s the quote of the week:
Source: Imgur
Source: Imgur
Over the last 3 months, Apple has been getting hit hard by articles and news stories accusing the iPhone/iPad maker of horride working conditions, specifically in its Chinese factories. The New York Times wrote several stories covering the supposed grievances, we wrote about it here and you can find the Times article here. Yet, the NYT wasn’t the only organization jumping on Apple over worker treatment, others were quick to point the finger at Apple (90% were hit pieces) and one of the loudest was the much beloved podcast: This American Life.
Back in January, This American Life ran a story, with the help of Mike Daisey’s, over the treatment of Apple factory workers in China and possible child labor practices. The piece was hard hitting, very animated (with the help of Mr. Daisey’s theatrical training) and explosive. It was another nail in the coffin for Apple’s continuing PR nightmare but Tim Cook (CEO Apple) didn’t take the accusations lightly, reiterating Apple’s stance on worker conditions:
We think the use of underaged labor is abhorrent. It’s extremely rare in our supply chain, but our top priority is to eliminate it totally. We’ve done that with our final assembly and we’re now working with vendors farther down in the supply chain. If we find a supplier that intentionally hires underage labor, it’s a firing offense….
Source: imgur
The insane thing here is…..wait for it….he was trying to smuggle them into China. Simply amazing.
Source: 9To5Mac
After months of public pressure and countless articles “exposing” Apple’s supply chain and supposed worker abuses at Foxconn’s city-factories – Nightline (ABC News) is being given access to Apple’s supply chain. The ABC exclusive will air Tuesday, February 21 at 11:35 p.m. ET:
Apple has given “Nightline” anchor Bill Weir exclusive access to their suppliers’ factories in China, amid reports of safety problems, hazardous conditions and underage workers. Weir is the first journalist go inside the factories to see these life changing gadgets get made. He traveled to Shenzhen China to see firsthand what life is like for factory workers, most of whom have never used an iPod, iphone or Apple computer…
The New York Times wrote several articles describing the supposed conditions Foxconn workers lived/worked under and while there hasn’t been an open or un-biased report detailing Apple’s supply chain, the countless articles that followed the NYT’s articles have forced Apple to address the issue. C.E.O. Tim Cook has repeatedly said that:
“Apple takes working conditions very seriously,” said Cook, launching right into a question about how Apple handles working conditions. “We take the conditions of workers very seriously. I worked in factories, I worked at a paper mill. We understand working conditions at a very granular level…”
While Nightline and ABC News have been given this exclusive insider view to Apple’s supply chain, there are still people within the media that see this report as a white-wash, as ABC is a parent Disney company and Disney has an extremely close business/board-member relationship with Apple. I look at this as transparency and the more transparency the better but this should be industry wide – not a witch hunt for the guy on top.
Source: ABC – Source: Times – Source: TheNextWeb
Not so many people know but a small company called Proview (China) owns the trademark to “iPad” in China, something they registered in 2000 and boy do they want their cut! In what can only be called “an attempt to force an expensive out of court settlement” Proview is pushing for a country wide ban on the import/export of Apple’s tablet and since the iPad is made in Shenzen/China, such a ban would disturb global shipments. While Chinese Intermediate People’s Court has rule that Proview is the rightful owner of the name “iPad” in China, Customs officials are worried that a ban would be harder to implement that Proview would like, mostly because the iPad is so loved in China.
“The customs have told us that it will be difficult to implement a ban because many Chinese consumers love Apple products. The sheer size of the market is very big,” Yang Long-san, chief of Proview Technology (Shenzhen), told Reuters in a telephone interview on Wednesday.
To make things even more interesting, Proview is extremely close to bankruptcy and could be pushing hard against Apple – for dear life. It has been rumored that Proview wants $1.5 Billion from Apple, just for the use of the name “iPad” in China. Good luck with that.
On January 21st, reporters Charles Duhigg and Keith Bradsher (New York Times) published the first of a series of articles describing Apple’s relationship with China – regarding Jobs, worker treatment and Apple manufacturing partners in the communist state. The first article, entitled “How The US Lost Out On The iPhone” was a brilliant piece, which really broke down the infinite variables that go into running a company like Apple and manufacturing in the 21st century. The article stared with a conversation between president Obama and Steve Jobs:
…When Barack Obama joined Silicon Valley’s top luminaries for dinner in California last February, each guest was asked to come with a question for the president.
But as Steven P. Jobs of Apple spoke, President Obama interrupted with an inquiry of his own: what would it take to make iPhones in the United States? Not long ago, Apple boasted that its products were made in America. Today, few are. Almost all of the 70 million iPhones, 30 million iPads and 59 million other products Apple sold last year were manufactured overseas. Why can’t that work come home? Mr. Obama asked. Mr. Jobs’s reply was unambiguous. “Those jobs aren’t coming back,” he said, according to another dinner guest…
Last week, the New York Times published an article written by Charles Duhigg and Keith Bradsher intitled: “How the U.S. Lost Out on iPhone Work”. It was a brilliant article detailing the realities of why China constructs 70%+ of Apple’s products and why America can’t compete with China’s factories/workers. The article got so much praise, that now there is talk of it winning the Pulitzer but in its brilliance, there were some shockingly sad realities about America’s manufacturing past/present/future.
Let’s start at the beginning. About a year ago, President Obama came to California and had dinner with silicon valley’s heavy weights – C.E.O.s from companies like: Netflix, Genentech, Oracle, Google, Intel, Facebook and Apple. At the dinner, each C.E.O. was asked to have a question ready for President Obama. As the story goes, when the late Steve Jobs (C.E.O. of Apple) was talking, President Obama interrupted him and asked: “what would it take to make iPhones in the United States? Why can’t that work come home?” Without blinking, Steve Jobs looked at the President and responded: “Those jobs aren’t coming back.”
Why aren’t those jobs coming back? Why can’t we complete with China and its workers? Why is Apple, a company with cash assets now worth almost 100 Billion and a stock price that puts it only second to Exxon (market Cap) not doing more to return some of that wealth back to America. These are some hard questions to answer and unknown to most of us, these questions have some very uncomfortable answers. Answers that not only define our country and what it has become but also, how we live and buy things. Here is where the answers start:
Weeks before the first unveiling of the iPhone 4, Apple decided to make last minute changes to the screen – last minute changes that effected every aspect of the iPhone’s assembly line. The decision to change the screen was made in the afternoon – by midnight, the whole assembly line was re-worked for the proper changes and the foreman of the factory woke up 8,000 workers (middle of the night) – putting them to work (each had been given a biscuit + some tea). 96 hours later, the factory was producing 10,000 iPhones a day – with production ramping up daily.
Charles Duhigg and Keith Bradsher go on to point out that executives they spoke to said: “The speed and flexibility is breathtaking…There’s no American plant that can match that…” when speaking of Chinese factories. So, Here is where we start to see the real divide:
Similar stories could be told about almost any electronics company — and outsourcing has also become common in hundreds of industries, including accounting, legal services, banking, auto manufacturing and pharmaceuticals.
But while Apple is far from alone, it offers a window into why the success of some prominent companies has not translated into large numbers of domestic jobs. What’s more, the company’s decisions pose broader questions about what corporate America owes Americans as the global and national economies are increasingly intertwined.- New York Times
So let’s go back to President Obama’s question to the late Steve Jobs: “Why can’t that work come home?” The sad reality is not so complex but it is tragic on many levels and Mr. Jobs was right in saying: “Those jobs aren’t coming back.”
1) The Establishment: The established factory and factory cities in China make moving full scale manufacturing back to America nearly impossible. At just one of Foxconn’s factory cities, nearly 1 million people work, sleep, live and eat. Imagine moving all that infrastructure back stateside.
2) The Chains That Bind: The established Asian supply chains would make mass production, assembly and changes much more expensive, if factories were located in America. The majority of the hundreds of small parts that make up the iPhone 4S are made in Asia – meaning that they would need to be shipped all the way to America for assembly.
3) Information Economy: While America has quickly adopted an information economy, we have also abandoned the manufacturing economy that made this country grow. We no longer have the facilities necessary to bring jobs back (look at Detroit’s buildings) and if we were to start building our infrastructure, it would take years to catch up to China.
4) They’ve Got Skillz: While skilled workers can be trained anywhere, China has industrialized training – with specific manufacturing positions being filled within 2 weeks. Workers go to training schools, within massive factory cities and study 15+ hours a day. This is expected in China and the average factory worker has “submitted” to this type of treatment/work. Americans have never experienced this type of industrialized learning and treatment, at least not in the last 3 generations. Maybe during the industrial revolution and after the 1929 stock market crash, did American workers see that type of life.
5) I’ll work for 30¢/Hour: The most prominent difference between manufacturing jobs in China and America are the laws. This includes hundreds of labor, safety and wage laws. What is the minimum wage law in your state? $8.25/Hour? How about 30¢/Hour and you work a 36 hours work shift! That’s right – there have been reports of people working 36 hours straight.
6) I’ll buy that for a dollar: Buy “Made in America.” People have speculated the cost of an American made iPad 2. The numbers have ranged all the way up to $1,140 – please keep in mind that these are fact based estimates and not tested. Yet, for the sake of argument let’s say Apple made two versions of the iPad: One made in America and the other made in China – how would the average capitalistic american consumer react? Right now, you walk into an Apple store and see on the shelf two iPads – times are tough – the economy is hard – your wallet is not what it used to be. The Chinese iPad on the right has a sign that reads: $499 – the American made iPad on the left has a sign reading: $699 (they are the same iPad/build quality/specifications) what do you pick? I think it’s fair to guess that the majority of people would still buy the Chinese built iPad.
It’s not that we can’t compete – we aren’t even playing the same game. The average Chinese worker and the average American worker can’t compete, they live in two different worlds. Over the years, Americans have fought for standardized labor laws, protecting the standard of life and living they desired. China has essentially sold the majority of its population into slavery to the world. This is the brutal truth to why those jobs will never come back to America. It isn’t a matter of Americans not being able to put together an iPhone, its a matter of, “I won’t do it for 30¢/hour!” The “Jobs” issue is immensely complex and while I have done my best to cover the main points – this is not solely an economic problem. This is a social, economical, moral and cultural problem. Sadly, there will be no real solution and no “jobs” will come back to America until people truly understand what they are asking for when they say, “I want those jobs back!”
Charles Duhigg and Keith Bradsher have written what I consider, (hands down) the best article of the year….so far. Please go and read it in its entirety, as my summarization does not do it justice. You can find it here – New York Times.
Source: New York Times – Image Sources: Pic1 – Pic2 – Pic3
Apple’s iPhone 4S global launch has been going very very well…..until yesterday and as of now, all 5 of Apple’s Chinese stores have been closed. Essentially, mad chaos broke out at Apple’s Beijing location, while the store was opening for the release of the iPhone 4S – reports have pegged the problems with scalpers outside the store but Apple has released this statement:
…The demand for iPhone 4S has been incredible and our stores in China have already sold out. Unfortunately, we were unable to open our store at Sanlitun due to the large crowd. And to ensure the safety of our customers and our employees, iPhones will not be available in our retails stores in Beijing and Shanghai for the time being..
Eventually, a S.W.A.T. police unit had to be called in to get the crowd under control – this was after people started throwing eggs due to the closure of the store. While the iPhone 4S can still be ordered online, it looks like in-store purchases will be a no go for some time to come.
Source: Reuters
Oh Belarus! Usually, during the holiday break, tech news is so hard to come by but that’s when you stepped in – thank you. As of January 6th:
…a law will go into effect that makes it illegal for Belarusian citizens or residents to visit any foreign websites. Furthermore, businesses or individuals may not provide services through domains not registered in Belarus, and owners of internet cafes or other such businesses can face charges if they don’t monitor and report any violations of this law. This last provision even applies to individual citizens hosting guests in their home — if someone hits a foreign website, the computer’s owner is bound by law to report it, or face charges himself….
Nathan Ingraham, of The Verge breaks it down as simply as need be. On the completely insane scale, this law is a strong 10! Just so you understand the craziness of this broadband law, Belarus is making China jealous. Just reminds us that it’s not 2012 everywhere…..
Source: TheVerge
We knew it was just a matter of time and maybe we’re lucky it lasted this long but word out of China is that there’s a new Android effecting trojan on the war path. Don’t freak out just yet! Mobile security blog LookOut posted about the trojan and its potential:
“A new Trojan affecting Android devices has recently emerged in China. Dubbed “Geinimi” based on its first known incarnation, this Trojan can compromise a significant amount of personal data on a user’s phone and send it to remote servers. The most sophisticated Android malware we’ve seen to date, Geinimi is also the first Android malware in the wild that displays botnet-like capabilities. Once the malware is installed on a user’s phone, it has the potential to receive commands from a remote server that allow the owner of that server to control the phone.”
Do we need to lock the gates and get our “Anti-Brad Pitt” spray? No! This only effects third party app stores – so essentially Google Market Place is fine and will continue to be fine, at least for the time being but this is a reminder of what is to surely come as the mobile space expands. Source LookOut Mobile Security
NEXT!!