Innovating The Next Big Thing September 20, 2014 ph.gif
ph.gif
Sections

Analyst Insights
Enterprise Insights
Network & Information Security
Enterprise Mobility
Remembering 9/11
About

Next Innovator Group

TechnologyInnovator
• NextInnovator
EnterpriseInnovator
SecurityInnovator
DefenseInnovator
WirelessInnovator 
• HPinnovator
EnergyInnovator
TransportationInnovator  

Contact

• NextInnovator(at)Live.com

Writers Wanted

Writers Wanted

Feedjit Live Web Stats


Next Innovators

Ghost City
Frontline Sentinel
• Innovation Insights
WebInno
Over the River
Enderle Group
Security Insights Blog 
McAfee Audio Parasitics
Rethinking Security
Ovum
iSuppli
Canalys
• eMarketer 
• CRM Help Desk SW 
Rethink Research
The Gadgeteer
Master the Moment

McAfee AudioParasitics


 
Barry's Books

 

Ads

ph.gif ph.gif
Analyst Insights iSuppli: Tech Needs to Clean House After Apple-Foxconn Fallout
Apr 10, 2012 – iSuppi News

Apple's public relations migraine over its suppliers’ labor practices in China may be just a headache now, but that doesn’t mean that other tech makers are off the hook for how their partners do business.

Apple-Foxconn Investigation Finds 'Serious' Violations Of Chinese Labor Laws
FLA's Report on Apple and Foxconn: Little Found and Even Less To Do

Saying the “moment of reckoning” has arrived for tech companies, just as it did for the apparel industry in the aftermath of stories about sweatshops in the 1990s, researcher IHS iSuppli said today that companies who spent about $360 billion last year on global manufacturing through partners like Foxconn need to be more proactive about labor practices and conditions at the facilities where their products are made.

While recent news has focused on Apple, the world’s most valuable company thanks to demand for the iPhones and iPads it has made in China, “the real impact is on the overall relationship of electronic brands with contract manufacturers like Foxconn,” IHS iSuppli said in a statement today. “Brands now realize that the biggest risk in dealing with contract manufacturers lies in the potential public relations disasters that can arise from worker’s rights issues.”

Contractors, like Foxconn, are now an “essential part” of the electronics industry and were responsible for about 20 percent of all manufacturing revenue last year. Here are the numbers:

The global electronics manufacturing business, consisting of electronics manufacturing services (EMS) and original design manufacturing (ODM) firms, generated an astounding $359.8 billion in revenue in 2011. As brands have increasingly outsourced production, the contract manufacturing industry has undergone enormous growth in recent years, with revenue rising from $264.0 billion in 2006. While revenue is expected to dip in 2012, the industry continue its expansion trajectory in the coming years, with revenue expanding to $426.1 billion in 2015.

The Fair Labor Association, which received funding from Apple, did inspections of facilities in China where  90 percent of Apple products are made. It reported on March 29 that workers there were working long hours without proper compensation for their overtime, among other things. The FLA says it spent more than 3,000 hours talking with 35,500 randomly selected workers inside three Foxconn’s factories (out of about  178,000 workers employed there). The entire report can be found here. Apple CEO Tim Cook, who visited China last month, has said the company will keep working to improve conditions for those laboring on its behalf.

But what about everyone else? While Dell, Hewlett-Packard, Microsoft and other tech companies compile supplier reports based on audits and post them on their website, this is one spotlight they’ve happily left on Apple, which started getting called out for the labor problems at Foxconn following a spate of suicides in 2010.

The time for being quiet and giving pat answers to questions about what’s going where their products are being made has passed, especially as China continues to dominate the market for such outsourced manufacturing services, says IHS iSuppli. “For electronics brands, the moment has arrived to ensure that the contract manufacturing partners of brands are in compliance with FLA rules. IHS expects more audits will take place that will uncover further issues.”

If this is really all about PR as IHS iSuppli suggests — rather than doing what’s right — here’s some advice to tech manufacturers debating what they should say/do about what’s going on in their partner’s factories: Take action now. Better to take a stand today rather than be criticized for inaction later. I can already see the headlines.



» Send this article to a friend...
» Comments? Tell us what you think...
» More Analyst Insights articles...

AddThis Social Bookmark Button

Comments
blog comments powered by Disqus

Search EnterpriseInnovator

ph.gif ph.gif
Support This Site



Newest Articles

• 8/20 Gartner Identifies Eight Steps to Build a Compelling Business Case for Social Initiatives
• 8/19 Gartner Says Consumer 3D Printing Is More Than Five Years Away
• 8/14 Gartner Says Traditional Development Practices Will Fail for Mobile Apps
• 8/13 Ovum: Ovum forecasts global OC market to grow 8% in 2014
• 8/12 Plan Now to Avoid Windows XP Deja Vu With Windows 7
• 8/11 Gartner's 2014 Hype Cycle for Emerging Technologies Maps the Journey to Digital Business
• 8/11 Gartner Says Chromebook Sales Will Reach 5.2 Million Units in 2014
• 8/10 Gartner Says Software Spending for Middle Eastern and North African Banking and Securities Firms to Grow More Than 9 Percent in 2014
• 8/7 Gartner Announces Symposium/ITxpo 2014, October 5-9, in Orlando
• 8/7 Faultline: EBU churlishly talks down LTE, but has no answers of its own
• 8/7 Faultline: Apple and Samsung stop fighting, notice Chinese creeping up
• 8/7 Canalys News: Canalys Channels Forums gather tech leaders to inspire and engage with partners and accelerate change
• 8/6 Gartner Says Indian Banking & Securities Firms To Spend 470 Billion Rupees on IT In 2014
• 8/4 Ovum: Ovum and Informa Telecoms & Media Research complete merger; creating a top-tier telecoms, media & IT research firm
• 8/4 Canalys News: Xiaomi becomes China’s top smart phone vendor
• 8/4 Canalys News: Notebook decline eases as tablet shipments level out
• 8/1 Ovum: Myanmar’s under-developed telecoms market is set to become the world’s fastest-growing
• 7/31 Wireless Watch: More twists and turns for Sprint as Iliad jumps in with TMO bid
• 7/31 Wireless Watch: European networks giants have adjusted to life with Huawei at last
• 7/30 Gartner Says India Security Market is on Pace to Grow 8 Percent in 2014
• 7/29 iSuppli: Fire Phone Hits the Sweet Spot for Hardware Costs, but Will Amazon's R&D Investment Pay Off?
• 7/25 Gartner Says IT Asset Managers and CIOs Should Work Together to Foster Digital Innovation and Avoid Technology Debt
• 7/24 Gartner Says Indias Mobile Services Market To Reach $19.2 Billion In 2014
• 7/24 Gartner Says Supply Chain Management Software Revenue Is on Course to Reach $10 Billion in 2014
• 7/24 Faultline: Poor awareness, content complacency; 4K TVs doomed to niche?
• 7/24 Faultline: Comcast will build over 1 million commercial hotspots in US
• 7/24 Wireless Watch: Subsidies out, non-handsets in, for the US’s big two carriers
• 7/24 Wireless Watch: The smartphone era is ending as the growth engine runs out of steam
• 7/23 McAfee Blogs: W32/Worm-AAEH Replaces Cryptor With One Used by Dofoil Downloaders
• 7/23 McAfee Blogs: The Firewall is Turning 25, but is it Really All Grown Up?
• 7/22 Ovum: Rushed analog switch-off threatens African TV
• 7/21 McAfee Blogs: 10 Experts, One Topic, 800 Million AETs
• 7/17 Ovum: Ovum Decision Matrix: Sustainable competitive advantage with the efficient use of data
• 7/17 Gartner Says the Business Consumer Requires a Digital Workplace
• 7/16 McAfee Blogs: Texas Tech University HSC Unifies Security and Compliance with McAfee SIEM Solutions
• 7/16 Ovum: To survive and thrive in today’s dynamic business climate, enterprises must treat data as an organizational asset, according to global analyst firm Ovum. Enterprises increasingly need to shift the basis of differentiation to focus on smarter
• 7/16 Gartner Says Mobile Application Strategies Will Be Transformed by Cognizant Computing
• 7/15 McAfee Blogs: Targeted Attacks on French Company Exploit Multiple Word Vulnerabilities
• 7/15 McAfee Blogs: Continuous Incident Response
• 7/15 Gartner Says CIOs Should Make Digital Business Technologies an IT Responsibility
• 7/15 Gartner Announces Keynote Lineup and Gartner Blueprints for Catalyst Conference 2014
• 7/15 iSuppli: Domestic Suppliers Dominate Chinese Solar Inverter Market as Demand Doubles
• 7/14 McAfee Blogs: Dofoil Downloader Update Adds XOR-, RC4-Based Encryption
• 7/14 Ovum: Analyst view: Amazon enters the file sync and share market with Zocalo
• 7/14 Ovum: Analyst view: Amazon enters the file sync and share market with Zocalo
• 7/12 Frontline Sentinel: The Impact of Red Team Drills
• 7/12 Frontline Sentinel: Integrating Threat Intelligence Into Your Security Program
• 7/12 Frontline Sentinel: Creating a Secure Guest Network
• 7/12 Frontline Sentinel: Onward Through the Cloud
• 7/10 Ovum: Analyst view: Teleperformance Group announced it will be buying Aegis’ US operations

AddThis Feed Button

Barry's Books


Ads

ph.gif
ph.gif Top ph.gif

© 2008 EnterpriseInnovator. All rights reserved.