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TRADE WARS
Nokia, Sony join chorus of concern over China factory

Eleven Foxconn workers have died in recent months after apparent suicides. Photo courtesy AFP.

Steve Jobs steers Apple to the top
New York (AFP) May 28, 2010 - By dethroning Microsoft as the world's top technology company, Apple chief executive Steve Jobs has piloted a stunning phoenix-like rise from the ashes for the firm he founded nearly 35 years ago. Apple, maker of the Macintosh computer, the iPod, iPhone and iPad, surpassed US software giant Microsoft this week in terms of market value and now trails only Exxon Mobil and PetroChina in market capitalization. Apple's market capitalization -- the number of shares outstanding multiplied by the stock price -- at the close of trading on Wall Street on Thursday was 230.53 billion dollars compared with 227.86 billion dollars for Microsoft. Apple's annual net profit, however, continues to trail that of Microsoft -- 5.7 billion dollars compared with 14.6 billion dollars last fiscal year -- as Microsoft chief executive Steve Ballmer noted in New Delhi on Thursday.

"It is a long game," Ballmer told reporters. "Certainly there is no technology company on the planet that is as profitable as we are." Microsoft may indeed be more profitable, but investors are increasingly betting on Apple and its string of must-have consumer gadgets. "It's really hard not to be upbeat on Apple," said Standard and Poor's analyst Clyde Montevirgen, pointing out that the Cupertino, California company's sales and profits rose even during the economic crisis. Apple's ascendance can be directly traced to Silicon Valley legend Jobs, who Fortune Magazine last year crowned the "CEO of the Decade." Jobs and Steve Wozniak founded Apple in 1976 and introduced the first Macintosh computer in 1984 along with innovations such as the computer mouse.

Jobs left Apple in 1985 after an internal power struggle and started NeXT Computer and Academy-Award-winning Pixar, maker of hit animated films such as "Toy Story." Apple, meanwhile, stagnated until Jobs returned to the company in 1997. Since then, Apple has gone from strength to strength, starting with the iMac in 1998, the iPod in 2001, iTunes in 2003, the iPhone in 2007, the App Store in 2008 and the iPad this year. "I think it's the most extraordinary turnaround in corporate history," said Spencer Ante, corporate deputy bureau chief of The Wall Street Journal. "Not only are they back in the game but they're leading the industry forward," Ante said on the Journal's Digits Live Show.

The iPad appears to be the latest success for the 55-year-old Jobs -- Apple sold one million iPads in the first 28 days, more than double the number of iPhones sold during the same period after the smartphone's 2007 release. The biggest cloud hanging over Apple is Jobs's health. The Apple CEO was treated for pancreatic cancer in 2004 and underwent a liver transplant last year. "If Jobs goes it will impact the stock but I don't think it will impact the company," said Montevirgen. "He's assembled a very strong engineering team. There are a lot of engineers who think like him. "I think Apple will continue to thrive."
by Staff Writers
Beijing (AFP) May 28, 2010
Technology giants Nokia and Sony on Friday joined a chorus of concern over labour conditions at a vast assembly plant in China after yet another attempted suicide by a worker who slashed his wrists.

The companies said they were looking into conditions at the factory in the southern economic zone of Shenzhen run by Taiwanese supplier Foxconn, following similar pledges by Apple, Hewlett-Packard and Dell.

The vows came as Chinese media reported another employee survived a suicide bid on Thursday at the vast plant, where 10 have died recently in apparent suicides. An 11th worker died at a Foxconn factory in northern China.

"We are concerned and take this very seriously," according to a statement by mobile phone giant Nokia, one of Foxconn's clients.

"Given the concerning reports regarding Foxconn, we are in continuous contact with Foxconn to ensure any issues are identified and addressed as soon as possible."

The suicides at Foxconn, which assembles Apple's best-selling iPhone among other brand-name gadgets, have highlighted concerns over working conditions for the millions of factory labourers who power China's export-reliant economy.

Japanese electronics titan Sony said it requires suppliers to adhere to a code of conduct and would investigate conditions at Foxconn, which is owned by Taiwan's Hon Hai Precision Industry.

"In response to recent reports, Sony has begun taking steps to re-evaluate the working environment at Foxconn," a company statement said.

Apple, Dell and Hewlett-Packard made similar statements this week.

Activists and employees have said the roughly 300,000 workers at Foxconn's Shenzhen plant face long hours, low pay and heavy pressure.

Dozens of demonstrators protested Friday outside Hon Hai's Taipei headquarters, urging it to improve treatment of its workers while unfurling white banners and laying flowers to mourn the dead workers.

"We urge Hon Hai to respect life and to stop its inhuman and militarised treatment of workers aimed at maximising profits," said organiser Lin Tzu-wen.

"The workers have to stand all day and they are not allowed to talk. They are treated almost like machines in a sweatshop environment," he said.

Taiwan media reports said Foxconn planned to give its staff a 20-percent pay rise as it battles to stem the spate of suicides. The company was not available for comment on the reports Friday,

China's official Xinhua news agency said another Foxconn employee Thursday had tried to kill himself at the Shenzhen plant by slashing his wrists.

He survived after being rushed to hospital for treatment, the report said. Foxconn officials in Shenzhen could not be reached for comment on the case.

The failed attempt came after Xinhua said a man jumped to his death at the complex late Wednesday, and that police had confirmed it was a suicide.

Hon Hai chairman Terry Gou publicly apologised for the deaths during a tour of the plant this week. But he defended the company's labour practices, saying some of the suicides may have been linked to personal problems.

Gou was quoted Thursday by Taiwan media saying Foxconn plans to relocate some facilities and about a fifth of the Shenzhen workforce to western regions of China where many of its workers come from to allow them to be near home.



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TRADE WARS
Microsoft chief says it's better to work with China
Singapore (AFP) May 26, 2010
Microsoft chief executive Steve Ballmer defended the company's presence in China on Wednesday, saying it was more helpful in easing censorship than the tougher approach of rival Google. Ballmer said that while he respected Google's decision not to bow to censorship in China, Microsoft believed it was more productive to engage Beijing in dialogue rather than take on a country's legal system. ... read more







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