Apple CEO Tim Cook vigorously defended his company today from charges that it has enabled the Chinese companies that produce iPhones, iPads and other products to mistreat workers with low pay, long hours, and unsafe conditions. “No one in our industry is doing more to improve working conditions than Apple,” he told the Goldman Sachs Technology and Internet Conference. “We care about every worker.” Although he says “the supply chain is complex” he adds that every worker has a right to competitive wages as well as fair and safe working conditions. “Apple suppliers must live up to this in order to do business with Apple,” he says. He added that hiring of children is “extremely rare in our supply chain, but our objective is to eliminate it totally.” He called use of child labor “a firing offense.” Apple also says it has found violations to its rule capping work at 60 hours a week but has begun to “manage working hours on a very micro basis….We can do better and we’re taking the unprecedented step of reporting this monthly on our website so its transparent.”
Cook declined to provide details about Apple’s television plans. He says, though, that the company’s experience with Apple TV — a box that integrates Web delivered content with conventional programming — showed execs that “there was something there and if we kept pulling the string we might find something that’s larger.” He says that the company sold nearly 3M Apple TVs last year, including 1.4M in the last quarter. If the company decides to offer a more ambitious product then “we need something that can go more main market.”
The CEO says he’s unfazed by companies — including Amazon –that are offering low-priced tablets to compete with the iPad, ”Price is rarely the most important thing” for buyers, Cook says. “The joy is gone every day they use it. You don’t keep remembering that you got a good deal, because you hate it…..People at the end of the day want a great product.” He says that Amazon will “sell a lot of units” — but Apple customers “won’t be satisfied with a limited function product.”
As for the iPhone, Cook says that he sees a huge opportunity to boost sales overseas. For example, purchases in China increased 100% last year to $13B. And it could create a halo effect for other products. “The iPhone began to introduce Apple to hundreds of millions of people who had never met Apple before,” he says.
Cook also tantalized investors with the possibility that Apple will return some of its $98B in cash and liquid investments to them either by paying a dividend or repurchasing its stock. “I’m not religious about holding it, or not holding it,” he says adding that “We have more cash than we need to run the company on a daily basis.” He says that the board is discussing the issue “more now and in greater detail….I only ask for a bit of patience so we can do this in a deliberate way.”

““No one in our industry is doing more to improve working conditions than Apple,””
What a crock of bullshit!!
Amen!
Who’s doing more?
I don’t think it’s a question of “who’s doing more”, as much as it’s a question of “who’s really doing anything?”
Easy fix:
Made in the USA!
Try it sometime Apple.
Agreed! No problems with your contractors employing child labor, or the government declaring that your patent protections are no longer valid and instead declaring that a Chinese company owns the right to make iPads.
I want work back here as much as any American but if you read Jobs’ biography you’ll understand why the iPhone’s not made here. Apple wanted to bring the industry here (Jobs even told Obama in person) but the red tape and tax burden is too great AND their aren’t enough engineers in America to oversee the complex manufacturing process. If Apple did and the cost of their phones went up $100 to offset the increased production costs, they couldn’t compete with Blackberry and Samsung and EVERY SINGLE OTHER phone made in China. If you’re gonna kick and scream and wave a flag at least know your facts. Try going a year without things made in China, it’s near impossible. Next time you vote, ease up on corporate taxes, increase spending on education and maybe industries will return. Otherwise, might want to teach your children to speak Mandarin because it’s China’s world from here on out.
Last year during the manufactured stupid debt ceiling “crisis”, Apple had more money in the bank than the US government. I believe the figure was somewhere around $87 billion. Perhaps Apple can look for a SLIGHTLY lower profit margin and pay the workers more and NOT raise the price on their products!!!!
EXACTLY!! red tape and tax burden my ass! they are just greedy mother****** who have no problem with slave labor as long as americans aren’t objecting.
Absolute BS. Foxxconn is apparently paying their workers a dollar a day and Apple’s profits are in the through the roof. If they truly wanted to bring jobs back to the states they could and the price could remain the same. Corporate greed at the expense of America’s manufacturing base – plain and simple.
It’s not really a matter of could they afford it, it’s is it sustainable t keep them in businesses, and educating 30,000 missing engineers, building miles of nonexistent factory floor, importing billions in materials literally not held in the state… not really sustainable. They could do it, and then close down in a few years. I’d be willing to bet almost every single person leaving a comment here has a house with 90% of its products produced overseas. If you have a name brand appliance, it’s from overseas. If you have any electronic device of any kind, it’s overseas. The Amish buy American, that’s basically it.
Nonsense. Most of Apple’s engineering is done in the good ol’ USA. Trusting Jobs’ autobiography for accurate info is naive and there is no excuse for using what is effectively slave labor for profit. The employees in Apple stores are paid at the low end of the scale of a living wage (not to be confused with a minimum wage). As for China taking over, wait a few years for the great experiment to run out of gas. As for Apple’s morality, the recent raising of prices of Whitney Houston’s music on i tunes says it all.
Not autobiography, you dolt. Jobs never assumed control of what was written or published. The accounts in his BIOgraphy are a composite picture; it doesn’t come down to whether you trust Steve Jobs.
@Not that simple Actually the US graduates more MSTE (math, science, technology, engineering) grads than the domestic market can employ so the notion that there aren’t enough competent Americans to fill these jobs is false. What’s driving outsourcing is the ability of corporations to overlook, consciously or otherwise, labor laws, wage protections and the like with foreign based manufacturing at a significant cost savings.
It’s simply more expedient to employ foreign labor. Unlike in China, here in America you simply cannot force a suburban white male to live in a 6×6 dorm room with 8 other people or lock them on an assembly floor for 20-30 hours at a time for weeks on end for pennies a day.
Nope. You didn’t read the NYTIMES.com story that explained that because Apple is able to exploit its workers who live in factory dorms, it can make nimble adjustments. In the example the Times gave, factory workers were woken up at midnight; given a cookie and a cup of tea; and sent to the factory floor to be trained and sent to work on the production line.
All those regulations that you think are horrible are what prevent American workers from being abused. Look up how Apple factory workers not only committed suicide because of their horrific work conditions but some died in explosions caused by poor factory environmental conditions.
If Apple really cared about this country they would bring the work back home. The difference in doing this work overseas and doing it at home is $65 per iPhone. Apple makes a great product but their business culture is greed run amok. They’d better find other markets because America is tiring of this practice of moving work overseas.
Great company. Great products. I love Apple and everything they are doing to make the world and internal environment a better place…but I only wish they treated their employees well at the retail store…they’re under paid, highly stressed, and most of them can barely make rent…take some of that extra $ and pay better…“We have more cash than we need to run the company on a daily basis.”
If it were only cost that was driving the work overseas. The problem is much deeper than that.
http://nyti.ms/yDNXh1
The problems solved by having buildings full of wage slaves to quickly correct them are problems being made by the higher-ups at Apple. Didn’t plan ahead for a scratch-proof screen? Then whoever didn’t plan ahead should have to suffer financially, not the American workforce.
While I would love to see manufacturing jobs in America again, it’s not fair to point only at Apple. Chrysler’s Super Bowl commercial was extremely hypocritical…. It’s a problem all over the board. Way too many American companies moved all their manufacturing out of the USA.
By even trying to address the concerns of workers in China, Apple’s taking a small step in the right direction. But it can’t just be them. This sort of pressure should be put on every company. It doesn’t make any sense foreign run companies are the majority of manufacturing plants in the US.
I hope Apple is honest with the hours Chinese workers put in. And hopefully it will lead to a reduction in man hours per person.
I guess now that Apple stock has risen from $10 a share in 2002 to $500 today – largely on the backs of cheap Asian labor – they feel they can afford to take the moral high road.
‘the hiring of children is extremely rare in our supply chain’
excuse me? there should be ZERO hiring of children in your supply chain – you are a big and powerful enough company to INSIST on that.
what a lot of hypocritical BS. try taking a bit less in profits and giving your slaves a living wage. disgusting.
So they are exploring ways of spending 96 billion huh? I got an idea lets invest in people so they can live comfortably and the U.S. could be more say 50-50 instead of 1-99.
The Apple haters are out in full force.
Apple was one of the last companies to move their manufacturing overseas. Other companies have been outsourcing their manufacturing to China for a lot longer – and because Apple has been incredibly successful – suddenly there is outrage over outsourcing?
What of the Walmarts of the world and in fact, every other tech company that haven’t reported or even acknowledge their supply chain conditions? They should get a free pass because they don’t generate as much profit as Apple?
This isn’t just on Apples shoulders – yes they should look after their supply chain and make sure that workers are treated right – and it’s not as if they haven’t been doing that. Those jobs that everyone wants back in this country will require a wholesale rethinking of how our government deals with corporations and our education system. It’s so sad that we’re ready to point fingers and tear down a homegrown company that is simply working with the realities of the market, but don’t have the courage to look at our own habits as consumers and our own representatives in government and demand better.
HA !! Ya, Like they just discovered it ! They have the largest slave labor camps in the world making Apple share holders rich . I love it. Corp. America has no soul and has no heart. BLOOD MONEY.