iPad 2

[billybob476]

You guys are awesome. HST was created in Ontario this year. It's basically the merging of the Goods and Services Tax (GST) and the Provincial Sales Tax (PST). There were certain items and services (such as basic groceries) that were GST exempt, by merging the two taxes into one, most of the previously exempt items are now no longer exempt. Yay government!

[Rico]

Some sad news here:

Explosion Rocks Foxconn's iPad 2 Factory, Three Dead

Early reports indicate disaster at Chinese supplier was due to poor maintenance -- dust buildup

While the weekend came and went without the realization of doomsday, last Friday likely seemed like hell on Earth for workers at Foxconn Electronics Inc.'s Chengdu plant. 

On Friday explosions ripped through the plant, which has been labeled as one of the key assembly locations for Apple Inc.'s (AAPL) iPad 2.  Early reports indicate the explosions were triggered by a buildup in flammable dust over the polishing workshop of the plant.

As of Sunday, three employees died and fifteen others were hospitalized.  Of the hospitalized employees six have been released, but nine remain in the hospital, several of which are in critical condition.

The move is the latest setback for the troubled Taiwan-owned gadget manufacturer.  Foxconn is a subsidiary of Hon Hai Precision Industry Co Ltd. (2317).  Foxconn draws its labor primarily from the vast population of mainland China.  It is China's largest exporter and counts companies like Microsoft Corp. (MSFT), Sony Corp. (6758), Nintendo Co., Ltd. (7974), Dell Inc. (DELL), and Hewlett-Packard Company (HPQ) as clients.

But its biggest client is Apple, who has relied heavily on it to produce its Mac computers and popular i-device lineup.

Pressured by Apple to deliver better products at higher quantities and lower prices, Foxconn turned up the heat on its employees last year.  As a result the company saw multiple suicides, with employees complaining of "hellish" working conditions. 

The suicides shocked China; while suicide rates in mainland China are generally quite high, they are unusual among young working age males, particularly those who have factory jobs.  The majority of the victims were indeed young males. 

Foxconn responded with a variety of tactics -- contracts demanding employees not kill themselves, anti-suicide nets, investigation into replacing employees with robots, and pay raises to raise worker morale.  The company claims employees are lying about poor working conditions.

Apple has been pressured about the suicides, but remains defiant to the suggestion that it somehow was to blame.  In its annual labor audit, Apple praised Foxconn for working to improve worker conditions in the wake of the suicides.

The gadget maker refused to comment on its supplier's latest crisis.

Chengdu is the capital of China's southwester Sichuan province.



http://www.dailytech.com/Explosion+Rocks+Foxconns+iPad+2+Factory+Three+Dead/article21699.htm

[Geekyfanboy]

Wow.. this makes me not want to buy Apple products...

[Meds]

China. I shake my head at their terrible health and safety standards.

[Dangelus]

Terrible.

How do you enforce a contract that demands an employee doesn't kill themselves? Bizarre.

[QuadShot]

Wow.. this makes me not want to buy Apple products...

Yeah but Kenny, if you used that as a benchmark to buy or not buy something, nothing from Microsoft, Dell, Nike, or any number of a thousand other brands would be purchased. How in the world can Apple be held accountable for this? They aren't ordering employees to kill themselves. Do you think American workers would do that?

[X]

Wow.. this makes me not want to buy Apple products...

Yeah but Kenny, if you used that as a benchmark to buy or not buy something, nothing from Microsoft, Dell, Nike, or any number of a thousand other brands would be purchased. How in the world can Apple be held accountable for this? They aren't ordering employees to kill themselves. Do you think American workers would do that?

I know of a few people that are boycotting companies that use sweatshop practices. I'm not saying that Apple is or isn't, but in the story, it suggests that Apple's demands have created the rise in people killing themselves.

[KingIsaacLinksr]

Wow.. this makes me not want to buy Apple products...

Yeah but Kenny, if you used that as a benchmark to buy or not buy something, nothing from Microsoft, Dell, Nike, or any number of a thousand other brands would be purchased. How in the world can Apple be held accountable for this? They aren't ordering employees to kill themselves. Do you think American workers would do that?

I know of a few people that are boycotting companies that use sweatshop practices. I'm not saying that Apple is or isn't, but in the story, it suggests that Apple's demands have created the rise in people killing themselves.

Foxconn has been in the news a lot recently, I wish Apple had dropped them when the dirty business Foxconn was running came to light....but frankly Kenny, do you realize how much of our technology is made overseas?  It is a huge number.  All of the tech businesses I believe are guilty of doing that.  I think the only thing made here locally (most of the time) is software.  Heck, we import so much of the stuff we buy (99% of WalMart's stuff....) its insane...

King

[Rico]

Wow.. this makes me not want to buy Apple products...

Yeah but Kenny, if you used that as a benchmark to buy or not buy something, nothing from Microsoft, Dell, Nike, or any number of a thousand other brands would be purchased. How in the world can Apple be held accountable for this? They aren't ordering employees to kill themselves. Do you think American workers would do that?

Actually they can be held accountable.  Take it from someone who has traveled overseas and seen some pretty crazy stuff.  Typically the issue is there is no one permanently there watching over things.  They send people over to get them all set up and then they all jump on a plane and head back home.  You need permanent staff there to watchdog stuff.  This has happened in many industries.  Remember all the issue with toys that got stirred up a few years back?  Well, that created programs and sent people there to inspect and watch them.  The company I'm at now actually does a fair amount of toy testing.  In any case, all we can hope for when something like this happens is that they change their ways and watch them much more closely.

[Rico]

Looks like the explosion is really going to slow up up iPad 2 production - which it should do.

http://techland.time.com/2011/05/24/combustible-dust-plant-explosion-may-cost-apple-500000-ipads/

[Bryancd]

In regards to Apple's responsibilty to monitor their suppliers business practices, the conduct annual audits. This year's audit resulted in the termination of business with one facility that hired 42 underage workers and another a facility that attempted to bribe auditors.

The Foxconn plant involved in the explosion won't help aleviate supply constraints, but it's impact likely won't be that large.

http://www.appleinsider.com/articles/11/05/23/foxconn_explosion_wont_greatly_affect_ipad_2_production_for_apple.html

Now Foxconn is closing down facilities to do an insepction for the dust build up with contributed to this incident, and that will likely also add a few more days of down production.

[Rico]

Ahh, gotta love the internet.  So we have a range of, it "won't greatly affect production" up to 500,000 lost iPad 2 units.  Propaganda at it's finest.  ;)

[Bryancd]

That's why I stick to the analysts who cover the stock, they actually get paid to be right. The rest is just noise. They need to make a call as to what is going to happen so they can advise thier clients.

[stonut]

A few years ago you turned something over it was made in Taiwan, Korea or Japan. Nowdays it's made in China, even the uniform I wear at work is made in China. Globalisation always follows the best deals.

[moyer777]

Learned how to hook up a midi controller to the ipad 2 tonight... wow, so freaking cool.

Using Ipad Garageband with an external midi Keyboard with Rick Moyer