Apple, Foxconn to Improve Factory Working Conditions

by Holly Shoemaker

On Thursday, May 10, 2012, Apple and Foxconn, the company’s main supplier, agreed to share the costs related to improving working conditions in factories that make iPads and iPhones.

 

Background Information

Apple and Foxconn have garnered media attention in the past months regarding working conditions in some of its Chinese factories. In April 2012, 200 employees threatened to commit suicide over low wages. The same factory dealt with a similar threat in January 2012 when 300 employees threatened to commit suicide over conditions related to working on Microsoft Xbox 360 consoles.

In January 2012, Apple entered into a partnership with the Fair Labor Association (FLA). As part of the partnership, Apple must uphold the FLA’s ethics code. Based on the FLA’s inspection of Foxconn, and now its recommendations, Apple has to make improvement by July 1, 2013.

At this time, the companies have not disclosed the exact breakdown of who will pay for what costs.

Concluding Thoughts

Apple had no choice but to publicly say it will remedy conditions because of media attention, its relationship with the FLA and its reliance on China to manufacture parts.

The improvements do not just benefit Apple and Foxconn. They will benefit companies such as Dell and Amazon who also rely on the same worker base  and plants to manufacture parts.

Dell Sees Windows 8 as Way to Compete in Tablet Wars

by Holly Shoemaker

Dell sees room to challenge the new iPad that went on sale Friday, March 16, 2012. According to Steve Felice, the company’s chief commercial officer, the tablet market is wide open.

Dell previously worked on the Steak last year, but did not move forward with bringing the product to the market. Dell, like Lenovo, sees Windows 8 as the new way to reach existing and new tablet owners. Windows 8 will launch later this year; it is currently available in beta, and will feature a touch interface that works across desktops, smartphones and tablets.

Dell also says the company has standards in place for tablets they have yet to announce. Consumers should see announcements regarding this in the latter half of the year.

Concluding Thoughts

Dell makes a valid point that it has existing business relationships. That may give the company an advantage over Apple. Relying on Windows 8 also differentiates tablets from the myriad of ones currently available. Dell should also take care not to repeat the mistakes of Research in Motion (RIM) and its disappointing PlayBook. Here too it comes down to marketing. Dell realizes it does not have the same individual consumer appeal that Apple does. Therefore, its strategy comes down to convincing IT departments.