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"Think Fair" is the right kind of killer marketing for iPads - suicides are not

By | June 1, 2010, 10:30pm PDT

Summary: There is a very real human cost to the Apple iPad but that would change if it were a “Fair Trade” iPad…

A recent Tweet by @drachgenabe: “One suicide death per 200,000 sold iPad.”

Apple has a marketing problem of epic proportions. The human cost of its latest hot product is suicide by the workers that make it.

Apple’s response is to top up workers’ salaries. But what if it also said it would make “Fair Trade” iPads?

“Think Fair” would be the right kind of killer marketing and a great upgrade to Apple’s immensely succesful “Think Different” advertising campaign.

Fair Trade electronics products would cost a bit more to make but Apple can afford to pay more for manufacturing. Apple has a profit margin of 21%, Dell’s is 3%, HP’s is 7%. Apple has nearly $40 billion in cash.

Higher manufacturing costs would easily be offset by the tremendous marketing value to be had in becoming the first Fair Trade tech company. Apple has a long history of being first.

Steve Jobs is not motivated by becoming ever richer but by creating the best products with the best user experience. There’s little wrong with the addition of a warm and fuzzy user experience that a Fair Trade iPad would provide.

The biggest drawback that I can see is this: Fair Trade Apple products would make the fanboys even more annoying. They’d be walking around, their noses in the air, exuding moral superiority from every pore, and their farts would smell better than roses. It could become suffocating if you were caught in a confined space with one of them.

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Topics

Tom Foremski reports on the business and culture of Silicon Valley at the intersection of technology and media.

Disclosure

Tom Foremski

Tom Foremski is the editor and publisher of Silicon Valley Watcher and Silicon Valley Watch. Tibco Software is an advertiser.

Biography

Tom Foremski

In May 2004, Tom Foremski became the first journalist to leave a major newspaper, the Financial Times, to make a living as a full-time journalist blogger. He writes the popular news blog Silicon Valley Watcher--reporting on the business of Silicon Valley.

Tom arrived in San Francisco in 1984, and has covered US technology markets for leading computer journals around the world.

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Fair Trade hardware?
LeonBA 11th Jun 2010
Wow, fair trade hardware? Now there's an idea. I would actually be tempted to buy Apple hardware if the company did that.
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Why is Apple single out when so many other companies subcontrat work to Foxconn??
Dell's motherboards are made by Foxconn.
XBox is made by Foxconn.
HP parts are made by Foxconn.
Yet, somehow Apple is single out.

The worst part about sudo-journalism like this one, is that the company with the issue is Foxconn, yet it is not mention a single time in the entire article.
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Easy answer
NonZealot Updated - 1st Jun 2010
@wackoae
Why is Apple single out when so many other companies subcontrat work to Foxconn??

Because all the beatings, murders, and suicides are happening at the plant that makes Apple products and all the problems stem from Apple's, and I quote, unparalleled demand for secrecy. So while Foxconn, as a company, makes products for many different companies, the other products are built at plants where people aren't beaten, aren't murdered, and don't commit suicide. Even Jobs, when asked directly about it, didn't try to make up the stuff you just made up.

sudo-journalism

What's sudo journalism? HAHAHAHAHAHAHAHAHAHAHAHA!!!!!!!!
@NonZealot: that is why Nintendo launched its own investigation last week.
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Writing articles about Unix commands?
top77@... 2nd Jun 2010
@NonZealot
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RE:
geoff@... 2nd Jun 2010
@NonZealot I believe he meant "pseudo" and spelled phonetically. So you chime in with your anti-Apple tirade just to bash a typo and blame this all on Apple? Still got your MacBook Pro I bet; even while you bash and bash Apple again and again. You must wear blinders as you insinuate no other company is involved as long as you can get in your dig at Apple. All the big companies try to use labor that is as cheap as possible which is why assembly moves as pay rates increase. It is a bigger problem and will require more than a band-aid to fix.
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NonZealot a non-entity
781lc 2nd Jun 2010
@NonZealot

You have not contributed one worthwhile comment to this discussion at any time since you first discovered how easy it is to be anonymous and how much the "monitors" and the other participants will put up with.
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Wow... Apple & Nintendo?
i2fun@... 2nd Jun 2010
@denisrs Wow.. Just Knew Apple & Nintendo Were in Bed Together ahmmm... with their Wiiis and iPads, no less! o.O ...must be a bloody scary sight!!!

No wonder there's so much secrecy at that particular Chinese Foxconn Plant and not the others! wink ....even Hitler didn't demand so much secrecy in his factories!


btw... @NonZealot Thanks for bringing that up and topping it off with "sudo-journalism". haha... Still remains though, that obviously both Nintendo and Apple's profit margins and unparalleled demand for secrecy is what's driving all the violence at that plant!

Note: Nintendo has always been considered one of the most secretive corporations ever. While Dell and Xbox Chinese Divs of Foxconn are by far more relaxed than Apple or Nintendo's Excessive Demands for Secrecrecy in their ahmmm... relationships to Foxconn's pre-teen employees!
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RE:
Al_nyc 2nd Jun 2010
@wackoae
read the article again. It's aimed at apple because their markups are ridiculously higher than the other companies. So they can afford to pay more and still make tons of money.
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RE:
.ray 2nd Jun 2010
@adr5@...
Exactly! Because they are the only company who can afford to do so due to their high margins. I saw a news piece on Chinese tv last week about foxconn rising salaries by 10% to around ?100 (US$150) a month.

Anyway, from what I can see, the article is about how Apple has the opportunity to improve the lives of its subcontractors AND make a marketing statement too, so a win win situation. Why, I therefore ask, are people so uptight about the article?
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RE:
galley 2nd Jun 2010
@adr5@... In other words, Apple is picked on because it's the most successful.
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@.ray @galley Foxconn's profit margin on the IPad is just a $1dollar per unit. Compared to much higher profit margins afforded employees working in other section of the this giant Shenzhen complex. Both Nintendo and Apple's Top Secret bob wire fenced areas are completely separate!

http://www.allvoices.com/contributed-news/5974288-10-workers-commit-suide-at-apple-s-foxconn-in-china

Both Nintendo and Apple have the highest profit margins, but afford the littlest of profit to Shenzhen at the highest cost for complete SECRECY!!!! wink
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RE:
ewelch 2nd Jun 2010
@ray@...

Of course I'm betting you don't understand the irony of your cheapskate criticism of Apple, when it is in fact your attitude of demanding overly cheap products of high quality that
drives manufacturers to go to China.
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Becasue
Crestview 2nd Jun 2010
Look it up, see how many Foxconn plants there are world wide. Apple uses the one in China, the one that has issues. Typical Apple head in sand reponse.
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RE:
Pete "athynz" Athens 2nd Jun 2010
@Crestview Sure and yet the average number of suicides at that plant is LOWER than the average of China! But sure it's all Apple's fault not the fact that they are a communist country who could care less about human rights...

Typical Apple Hater response
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Proofread
becabill 3rd Jun 2010
@wackoae
and it's pseudo, not sudo
Nintendo launched its own investigation to look at suicides and working conditions.
@denisrs Both Nintendo and Apple make good bedfellows. Both require Foxconn to have extremely high levels of security where certain employees privy to security issues are virtually held prisoners in their massive Shenzhen network of facilities. They eat sleep and work for a $100 a month and their living expense cost are figured into their reported $300 a month compensation.

Suicides are being reported as a direct result of the ultra high secrecy levels for both these companies. They are also coupled with extremely low profit margins from them as well. Because Foxconn wants their business on their popular products. Therefore the rest of the companies that Foxconn has contracts with, are actually subsidizing high security and low profit costs for Apple and Nintendo!!!

It's called Corporate $GREED$!!! ....and both of these companies are two of the worst ever at that!
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single out
banned from zdnet 2nd Jun 2010
why do bloggers single out apple, when sony, hp, dell, nintendo, nokia and others also subcontract work to foxconn?

people, get real, it is because bloggers like tom are paid to do so. it is their job to spread FUD about apple. a site like zdnet is dependent on advertising money from the traditional pc industry, some of them direct competitors to apple or at least heavily invested in a business model that is threatened by the unstoppable rise of apple.

tom's agenda is well known. don't get fooled. just don't click on the drivel. that will help.
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ignore them, especially NonZealot
Laraine Anne Barker 2nd Jun 2010
They aren't worth the effort it takes to type a reply.
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RE:
skip345b 2nd Jun 2010
@banned from zdnet

That's so easy even a caveman can answer that. Ugggh, here is my answer; " They are not makon the bacon Apple is. I had to get poetic with it. LOL
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Obviously you click on the drivel,
becabill 3rd Jun 2010
@banned from zdnet, As you seem to know all there is to know about the intentions of *all* these bloggers. If it's not blatantly pro-Apple, then it must be anti-Apple.
When you say "people get real" (apparently your shift key doesn't work), and make the incredible statement "it is their job...", you are implying that a coalition of competitors is aligned against "the unstoppable rise of apple". I just hope you are never allowed to obtain any lethal weapon. You shouldn't even have access to a butterknife.
The national suicide rate is comparable to Wales. (Wales is concerned.) This is a vast company. Statistically, some people will fall into despair and depression for reasons unrelated to their work.

Even so -

Fair Trade Certified as described here http://en.wikipedia.org/wiki/Fairtrade_certification doesn't necessarily work for electronics hardware. Food mainly, and cotton. But you don't get the little village cooperative microprocessor foundry. And then what about ethically sourced coltan, which is indispensable for wireless (radio) communications? What about the environment? It's so complicated.
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Do you really trust
becabill 3rd Jun 2010
@Robert Carnegie 2009

Do you really trust the suicide statistics from China? Their journalists are repressed under threat of lawsuit, imprisonment or death for embarrassing the State, and probably never hear the real extent of work-related depression, anxiety and resulting breakdowns and deaths. I've seen plenty of it here in the good ole USofA where bad news is the lifeblood of the news industry.
cost of living wise for there location people making these wages can live very comfortably and people are happy to get them. its the whole in house dorming and living conditions that are the problem with these factories.
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They don't live comfortably AT ALL
tikigawd 2nd Jun 2010
@Johnny Vegas
Open your eyes. Their living conditions are deplorable: overcrowded dorms on the plant where they work.

It's almost a concentration camp.
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RE:
daengbo 2nd Jun 2010
@Johnny Vegas Wow. You must really lack empathy. Go live in a developing country. Watch people work six twelve-hour days for what you make in an hour, then go home (Apple's Foxconn employees don't get to do this next part), try to clothe their families, and cook food that leaves them vitamin deficient. You expect them to smile about it, and they generally do because they're better off than their neighbors.

Tell yourself they live "very comfortably." If you had 32 hours of forced overtime a week, I bet you'd get to have a bedroom -- maybe even a bathroom -- of your own.
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This is how America was
Pete "athynz" Athens 2nd Jun 2010
back before the unions were formed and the working class had a say about working conditions, working hours, and the like. Yes it does indeed suck for those people and yes I am moved by their plight BUT laying the blame for this at Apple's front door is idiocy.
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Third world and developing countries
becabill 3rd Jun 2010
@athynz
are *all* suffering under the deplorable non-union jobs, and all say "Yeah, but at least we have jobs" (Not talking about Steve here). True, they can by milk and put some kind of roof over their heads, keep their bike on the road, but *NO EMPLOYER HAS ANY RIGHT TO ACTIVELY REPRESS AND MISTREAT THE EMPLOYEE*. Opening factories in these countries is a two edged sword, and First-world countries should take this into account. However, it is ultimately the responsibility of those governments to monitor and enforce the few Human rights laws they have on the books. Failing that, our companies should *pull out* whatever the bottom line impact or the inconvenience of the consumer. WE THE CONSUMER ARE THE ULTIMATE FACILITATOR!
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RE:
Curt Doolittle 2nd Jun 2010
THere is no campaign necessary. The simple reporting of the events will cause change.

China is a primitive economy. The people who work in factories are peasants, and their managers are from a culture that uses violence and discipline rather than reward and enticement. It will take two or three generations to fix that culture by exposing it to international capitalism's benefit - consumers don't like nasty companies.

The press did it's job. The market is doing it's job. And by transforming a backward culture that sees humans as disposable bits of evil, capitalism will change china.

Then, all we have to fear is corporatism and state fraud and corruption. Just like we do here at home.

In the meantime
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RE:
XFunc_CaRteR Updated - 2nd Jun 2010
@Curt Doolittle

"It will take two or three generations to fix that culture by exposing it to international capitalism's benefit - consumers don't like nasty companies."

It isn't that "consumers" don't like nasty companies - it's that people don't. Capitalism cannot take the credit for ordinary human empathy. Indeed capitalism is just a means to an end. Both capitalism and socialism can produce evil as well as good results.
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RE:
iowane Updated - 2nd Jun 2010
@Curt Doolittle
Uhm...capitalism doesn't see humans as disposable? How about corporations downsizing while making record profits? Keeping worker wages low while paying executives more and more each year? A publicly held corporation is bound by law to look after its shareholders, NOT its employees.

I'm sorry, but history has shown that capitalism does not save the countries that adopt it. The only countries that do well with it are those in a financial position to exploit. If we didn't have China making nearly-free products for us, capitalism would not look nearly as good here in the U.S.
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RE:
Str0b0 2nd Jun 2010
@Curt Doolittle I think that in fairness it should be mentioned that the principles of capitalism are the very principles that cause conditions like this in the first place. That is not to say there is a better alternative out there it is simply the facts. Consumers, i.e. people, want cheap products. Companies want high profits. the only way to feasibly do both is to utilize countries where they can get a labor force for dirt cheap, usually by paying low wages and no benefits. It is the reality of our system, nothing more and nothing less.
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@Str0b0
by requiring fair treatment of employees, and, reciprocally, workers should recognize that they have the power to ruin a company or to allow it to become a great success by expecting reasonable compensation without featherbedding. A stable and growing economy is a balancing act. Heavy-handed management can destroy dedication, as a lack of recourse for employees will inevitably lead to the things were seeing at Foxcomm-and many other companies who manage to control their image somewhat better.
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One cannot equate the manufacture of the iPad with the problems of the Chinese worker system. These people didn't jump to their deaths because they only got paid $130 per month, but because they still have some of the attributes of a communist system. They are boarded in communities similar to camp, but not really a good life for people who want to have a family and gain some prosperity.
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RE:
Vorellon 2nd Jun 2010
@RWNorman
Agreed..
All while beating their slaves we call workers. Apple, of course is not the only company. I imagine the shirt you're wearing right now has human costs associated with its production at some point.
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What you get when you buy Apple
cntrysigns@... 2nd Jun 2010
Apple may have a bigger margin but when I call apple I get someone that can help me with my problem, I get a company that has fixed things they didn't have to fix to have happy customers and that money goes into future innovative products. If you reduce their margins they will be like every other company (crap)
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RE:
jasonbschroeder@... 2nd Jun 2010
@cntrysigns@... What if your problem is that you are in a wheelchair and you only have cash to pay for your iPad?
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Bringing up dead issues
Pete "athynz" Athens 2nd Jun 2010
@jasonbschroeder@... Then you are able to buy your iPad - seriously way to go bringing up an issue that was corrected and is dead. but bringing up dead issues is in the Apple Hater's playbook...
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yes but... no.
magallanes 2nd Jun 2010
@cntrysigns@...

sorry but you have no idea.
For example, for the same price that cost a Apple Warranty, you can buy a complete care from another company (such dell).
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@cntrysigns@...
becabill 3rd Jun 2010
You live in a rare world. Apple is marginally better than most other successful companies, and Apple lives in an innovate-or-die world, current margins notwithstanding. The new iPad is absolutely the best in its class, is selling like hotcakes, and pretty much brings a nice margin. But being manufactured cheaply in China is an advantage most all other companies have as well. If Apple sees a need to improve the lot of the Chinese labor force, more power to them. That won't affect the bottom line, just the retail price. And that is as it should be *if it really helps*.
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I agree
gnostication@... 2nd Jun 2010
That kind of business practice, if certified via independent watch groups, would definitely make their products worth far more to me and others I know.

I don't mind paying *a little* more (i.e., no more than 5% over the business-as-usual price) for products and services that pay their people more and contribute to the greater good of humanity in a sustainable way.

That kind of business practice should be rewarded with my consumer dollars so the companies that don't follow a shared-wealth, sustainable model can by hurt more immediately by their short-sightedness.
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If I worked @ ZDNet
thofts 2nd Jun 2010
I'd kill myself because I was a non-skilled "blogger" who wanted to be a journalist but only had a GED.
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So if you worked at ZDNet,
becabill 3rd Jun 2010
@thofts, what would you bring to the company?
Valuable insights like the one you just posted?
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It's China's problem
palavering 2nd Jun 2010
Why does Apple (I'm a stock holder) have to change its pricing? Its China that has to change its labor policies, not Apple or the USA. The Chinese are living better than ever. Its a slow process but its working. Its not Apple that will make a difference, but the powers who rule China. More and more Chinese are moving to the big cities and enjoying gainful employment. Have you noticed that they are now having a problem with obesity? Leave the Chinese market alone, and stop trying to spread unearned guilt.
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eh?
magallanes 2nd Jun 2010
@palavering
Apple is in China not because they love China but because they love to save money, contracting semi slave workforce.

So, if Apple decide to keep in China then you can't blame China.
Let's say that China decide to be fair with their worker then you can bet that Apple will move to another country.
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If Apple stopped using Chinese labor
Pete "athynz" Athens 2nd Jun 2010
@magallanes Some other company who needed products assembled would fill the void - at least Apple has done something by paying those workers 10% more. When was the last time you, I, or anyone else other than some fatcat CEO got a 10% raise?
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Thats fear-mongering at its best
becabill 3rd Jun 2010
@magallanes
work cheap or get laid off. Same fear here in the States, and it's fully justified. Chinese work cheap, take jobs from Americans. Vietnamese work cheaper so they take jobs from Chinese, et c. ad nauseum. It's got to stop somewhere. Apple is doing their part, and though I don't use any Apple products, I'm more likely to in the future. Good moves do make good PR.
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Missing the point?
rleaf@... 2nd Jun 2010
Reread the headline!
The article suggests a marketing tactic for Apple to consider as an opportunity to become the leader in promoting better worker conditions for ALL electronic manufacturers.
It was not an attack.
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Fair TRADE?
cgarrett 2nd Jun 2010
These aren't commodities. If Apple wants to pay fair wages, they might as well move manufacturing to the US and satisfy more people. They'd probably get a huge market share boost from those "Buy nothing but American" fanatics.
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Yeah...
becabill 3rd Jun 2010
@cgarrett
I'd buy it, it would be a tougher, more reliable machine that gets 8 MPG. And I would feel that the people who made are getting their fair share of benefits, not getting beaten and can live at home with their family!

--becabill the BUY AMERICAN fanatic
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Fair Trade hardware?
LeonBA 11th Jun 2010
Wow, fair trade hardware? Now there's an idea. I would actually be tempted to buy Apple hardware if the company did that.

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