By Kevin Meyer
The rumors are that Apple will be announcing the new iPad 3 on March 7th. For the first time in a few years I won't be one of the drooling Apple groupies standing in line for hours – or days – to get the latest Jobsonian creation.
I'm sure it will be great. The specs are incredible, and presumably just like other Apple devices it will continue to help many people work better. Bill and I may disagree on whether that's "innovation" but we agree on a fundamental aspect of the company itself. And this time that will override my desire for their latest product.
You reach a point where your moral compass overrides the desire for a great product. And that's where I am, and probably should have been sooner.
Apple has known about the problems at its outsourced Chinese factories for years. It pays lip service to solving the problems by doing audits and and sending out press releases reiterating how they are supposedly concerned about worker safety. Again and again. And nothing really changes.
Enough. As I wrote a couple weeks ago, it is time for something beyond just words, and with nearly $100 billion in the bank Apple could truly change the dynamic – if they wanted to. At a bare, relatively inexpensive, minimum they could have permanent observers in the factories. They could set deadlines and requirements for real change after which they would relocate manufacturing. They could invest a billion – pocket change to them – in innovating manufacturing to a level where the supposed "cost" of workers is no longer a concern. As if it ever was at their margins. But they didn't and they probably won't.
To be fair, it's not just Apple. Not by a long shot. The same situation exists with almost every company that chases "cheap labor" around the world. Just by nature of the mindset and traditional financial analysis that considers workers a "cost" rather than an asset, the drive will be to get more from less which inevitably leads to the issues we now see in China and elsewhere. Nike, Victoria's Secret, toys for the London Olympics, fish from Indonesia, and just today Johnson Controls – again in China.
Lean folks regularly talk about the importance of respect for people. Moral people talk about the importance of human dignity. It's time we live it, and really mean it. Some companies also claim to be lean and conveniently ignore that core component, and some companies that don't necessarily claim to be lean – like Apple – still tout that they are supposedly socially aware. And then they effectively condone the mistreatment of workers, year after year. It's time they shape up or ship out, and we let them know that we do consider it important.
For me, Apple sitting on $100 billion and paying Tim Cook $189,000 per hour while not doing anything real about the problem in its factories is just too much. They just lost a $700 sale. I realize it's not even a drop in the bucket, but perhaps others will feel the same way.
Bill Waddell says
Well written Kevin (and not just because you agree with me).
John F says
Well thanks, Kevin. I guess count me as one of those that put my hands over my ears and eyes and try to pretend we aren’t somewhat responsible for the Foxconn issue. Now I have to face it. As long as Apple reaps great profits while treating workers like crap, nothing will change. I am concerned that this latest controversy will soon blow over and five years from now we’ll wake up to another Time cover on worker atrocities at Apple factories in China. Can I really accept that? What does that say about my personal ethics and morals? What can we do to change the story? I guess for now my iPad 2 will work just fine.
Steve H says
Ok, so I want a buy a new tablet or laptop from a company that doesn’t have this issue. What do I do?
I think many of the Panasonic Toughpad and Toughbook items are probably made in Japan, so there is one option. Samsung and LG make laptops, but like my Sony, it is probably made by Foxconn too.
Its good that your avoiding the newest Apple product, but eventually, you’ll need to replace your old one. What is the difference between just buying it now or waiting until then?
Kyle Hanson (@discipleleader) says
Thanks for the post, Kevin.
As much as I’ve used Apple products exclusively for more than 13 years, I just sold my Apple stock and will likely start looking for someone in technology innovative enough to respect people and make profits. Any suggestions? Seems like a disappointingly short list…
Kevin says
Steve – I hear your point. For starters, perhaps there’s a difference between “need” and “want.” I want a lot of things, I need far fewer. The iPad makes it very easy to cart around a bunch of books, read the WSJ each morning, check email, etc. But the paper WSJ worked just fine for the first few decades of my life. However in reality I guess I hope that some changes are made that would let me look at Apple again. It really wouldn’t have to be much. Some expat Apple folks stationed at Foxconn that verified age, hours worked, pay, and attention to safety on a continuous basis could come very close. Of course I’d like to see more, and I believe the opportunity for a truly disruptive manufacturing model (as opposed to a very well executed “chase cheap labor” supply chain strategy – the supposed brilliance of Tim Cook) is there. I guess we’ll see.
Georges Belfort says
Thanks Kevin, I think a lot of us needed that jolt of moral thinking. It’s so easy for me (us?) to simply turn a blind eye to what is happening and enjoy the product while eating something from Trader Joe’s in our mansion on the hill. Life is so good until you think about what it costs others to put you in that place. I’ve been in good factories in Asia, and even the good ones are places where I thank God my kids will never have to work. I can’t imagine even being a manager in a bad factory. Now when I hold an Apple product I have to think about the hands that put it together and the life of the human with those hands. That’s not a pleasant thought. In fact it makes me sick.
Steve H says
I think there is still a good bunch of technology that is made in Korea or Japan (which for arguments sake I’ll assume has better respect for workers than Foxconn)but it would be wonderful to see one company take the lead. The whole industry is just as guilty, but they won’t change their ways unless someone else takes the bold steps.
ND says
Imagine the bold step that a tiny fraction of $100 billion could make. Especially for a company that has a following that is traditionally socially conscious. You would think that aside from the moral improvement that the marketing and advertising opportunity to shame their competitors would be be incredible. I would buy products based on that alone. I would even pay more for them. Look at how many people pay more for “cage free” or “free range” and such. How about products made with “unslaved” workers?
Bart says
I’ve never owned a piece of Apple hardware, and stopped using Itunes years ago. The Foxconn fences — the ones on top of their buildings to keep workers from jumping off — are enough to convince most folks. The superior attitude was a red flag for me much earlier on.
Stuart Berman says
It is great idea to hold companies accountable and vote with out wallets.
While reading the recent article in the WSJ about Apple what struck me was the general ignorance about most of the products we buy, not just hi-tech. Are we going to hold the manufacturers of shoes, washing machines, clothes, TVs, kitchen utensils to the same high standards?
The company I work for makes stuff in China for the Chinese market. It costs about 10% of what it costs here in North America (albeit with a different performance spec). What I do know about our operations in China is that the Chinese culture is very different. We have dormitories for employees, we pay them above average for their work, although it is still a fraction of what a US worker is paid. A fair analysis would look at the relative conditions otherwise we are comparing apples to oranges.
And perhaps we should also boycott the likes of the Empire State Building for their use of suicide fences as well.