not as upset though as the New York
Times like six-page article seven page
article this is huge on conditions
inside Foxconn and that and basically a
larger story about the conditions around
building consumer electronics which has
been this like bubbling up thing for a
long time but this is this is an
upsetting read and I'm fairly important
I think you guys should all check this
out it addresses specifically in this
article it talks about apples dealings
with manufacturers like Foxconn and
suppliers and how they've dealt with the
conditions inside of there now they do
point out and we all know that Foxconn
does supply products final goods for a
variety of companies like HP lenovo IBM
but this is kind of the focus on this
specifically with Apple is we've heard
about you know how there was that
explosion I think maybe somewhere around
four to five months ago and one of their
factories on where four people died but
also just the overall trend of how much
are they really doing to change and make
improvements because you have here on
one side apple just reported their
earnings and if you know or read those
they were off the charts it was forty
three billion dollars in revenue 13
billion net revenue record sales for
iPads macs and iphones all right so you
see these numbers and that Wall Street
is just blown away by them but there's a
cost that's involved in this and this is
the human cost in these products how
hard are they working these people what
are their living conditions really like
in this article the New York Times goes
on in like we said it's a long six-page
article they talk about how Apple was
once it was brought to their attention
Apple was one of the first companies
that said okay we're gonna do audits of
these suppliers and factories and talk
about and point out where they have
violations whether it's underage workers
people working over 60 hours a week six
or seven days in a row how long are
their shifts so Apple has tried to send
out reports of suppliers and companies
that are violating these policies the
prominent even at that though right
right the problem is although they are
mark you know mentioning these they have
in their contract apple says they have
the right to terminate their contract
agreeing
it with any supplier that violates these
policies well the ratio of actual
suppliers they've terminated versus the
violations across the board is its
Terrace is there there's no parody they
said they terminated maybe 17 people all
of the contracts remain in place and
these are audits by the way that have
been happening in some form since 2005
they got a lot more serious in 2007 but
a lot you know this article quotes
several former apple executives as
saying look if we wanted this stuff to
stop it would stop there finding
violations every single year in the
audits including dozens as many as 70 in
one case what they call core violations
which are violations that involve hiring
underage workers and improperly
disposing of toxic waste forcing people
to work in patently unsafe conditions
and it's sort of like they just write a
story about it here but the problems
don't go away and its really I mean
certainly the times takes care to point
out that this is an industry-wide issue
but it does sound like other supply
other companies HP Dell Lenovo do a
better job in some cases of terminating
those contracts but Apple has created
such a cycle of constant releases and
they've created such a consumer
expectation and they squeeze squeeze
their margins so intensely that's always
been their way that right that's always
been their way it's been the way and so
there I mean there are several experts
quoted in this article saying let's be
realistic there's no way that Apple is
going to terminate a contract with
Foxconn yeah that is not going to happen
and there's no way that Foxconn or any
other apple supplier has incentive to
treat their consumers well because they
have to cut costs at every single corner
and here's another thing we talked about
apples secrecy as a company and one of
the issues that these reports have shown
is that Apple named these factories and
suppliers but not where they're located
because of the level of secrecy when
these suppliers signed agreements if
your if your supplier in China and all
of a sudden you're like wow we're making
parts for Apple we're going to have this
huge contract and you sign a
confidentiality agreement that says you
can't reveal that Apple's when your
partners and the reports apple doesn't
reveal where your
located because the secrecy you you that
culture of secrecy is going to permeate
this and also we won't we don't know
everything that's really happening at
these factories you can't even find all
of these factories and know who's doing
what and because of that culture of
secrecy that's that's another that's
another reason why it's very hard to
shed light on this and that's not a good
thing that's a horrible thing and
honestly when I think the most enraging
quote of all to me in the story was
someone who said consumers demand new
products every year that was such horse
crap like no they don't right marketing
and a constant release cycle has
convinced consumers that they can expect
these products every year but let's it
that is solely so that companies can
make money it's not like I'm sitting
here going like if I don't have any
iphone every year I will just die I will
just not make it I mean that's you know
that is it was something that has been
conditioned and so that's a cart before
the horse kind of argument and the fact
that Apple is sitting on an unbelievable
cache of money that they made 13 billion
dollars for fraud revenue my friend that
was the pure profit part of their
earnings the fact that they can't spend
my end and by many accounts in this
story they have been warned very
specifically about safety issues and
violations and not responded in fact
they say two weeks before the foxconn
explosion a report was sent to Apple
warning of unsafe conditions and
according to almost all of these reports
apple just did not respond yeah so the
takeaway of this is that a as you as a
consumer do you really care about the
device because we've seen how in the
past sweatshops with a you know nike and
gap in other clothing industries people
have made noise and protested against
these companies for their practices are
we as a collective group we need to do
the same thing with these tech companies
and hold them accountable because I'm
sorry I don't want to know that someone
died potentially died at the hands of
creating my phone that's ridiculous yeah
it's it's it's ridiculous so it's really
up to us to start realizing that hey
this thing that we
have isn't as important as these
conditions that we care about and you
know Foxconn has some factories here in
the US but one of the other challenges
that obviously the laws and what's
morally acceptable in one country for
workers rights is different than what's
here in the US but it doesn't mean that
we have to we should overlook it mm-hmm
absol so and to micro and who's asking
in the chat room why's it why are we
only talking about Apple we mentioned
earlier that HP Lenovo many other
electronic companies do business with
Foxconn none of them do business on the
scale of Apple and none of them make as
much money off of the off of these
business practices I mean somebody in
the chat room just pointed out Curtis be
it was the fourth best profit report
this fourth quarter thing of all time
they're it they're basically up there
with the oil companies in terms of pure
profit they have the muscle and the
market power to make a huge difference
here they've known about these problems
for years and they haven't done anything
about it they're like the McDonald's
right like when McDonald said ok we're
going to stop but they McDonald's had a
huge impact on the beef industry and the
way that cows were being treated
basically because they said ok due to
market pressure we don't want to you
know be have things be as inhumane as
they have been apples McDonald's in this
situation and they need to be the ones
to do something about here's the way to
look at this realistically if if let's
say thirty to forty percent of all
iphones kid that came out of these
factories were defective Apple would do
something yes to stop them from being
defective whatever those procedures or
conditions are so Apple should rely like
if that's what's happening with their
phones at how they rack they need to
react the same way with the conditions
for these workers yeah you know when the
first issues were brought up about
workers being underpaid and overworked I
remember Apple went and did an audit and
they gave a raise a general raised to
some of the workers but that doesn't
address the conditions right the
systemic problems that are happening
over in these factories so really if
Apple wants to stand tall and look like
the good guy within the next six months
to you I mean I don't know I hope they
addresses because Tim Cook his history
he his genius or his one of his
strengths was dealing with the supply
chain right the efficiencies of it the
margins so he knows what's going on it's
really not really
name two because in some ways Tim Cook
is coming out is the good guy right like
he he restored charitable giving
matching at apple or introduced it for
the first time something that Steve Jobs
resisted he is now giving Apple
employees a big discount on on buying
their own products like you know he in
some way seems like this really great
guy but he is the guy who set up these
manufacturing arrangements it's on him
like it's actually on him personally I
think in a lot of cases to take care of
this to deal with this and I think that
it's and that's why we're talking
spending so much time talking about it
because it is really important like
Brian pointed out the consumer can have
a big difference here you and interests
and there and we there needs to be
outcry about this it's not acceptable
for people to die for your iphone which
is not so I i I've got to imagine with
this long article that's going to get a
lot of play that we're going to hear
something you know in the near future
from Apple right they're not going to
just like sweep this one under the rug
so totally and we're not either
We are a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for us to earn fees by linking to Amazon.com and affiliated sites.