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March is rapidly winding to a close, but it continues to be an eventful month full of software updates (Retina Display and otherwise) and Apple-centric news galore, which today includes the release of audit results from Apple’s controversial manufacturing at Foxconn, as well as a detailed study on Cupertino’s tactical moves in the smartphone patent wars against Android. So what are you waiting for? Let’s get to reading the news for this Thursday, March 29, 2012.
Fair Labor Association Releases Foxconn Audit Results
The day of reckoning has finally arrived for Foxconn, one of Apple’s largest suppliers in China. According to ABC News, the Fair Labor Association (FLA) has released the results of their independent investigation, which finds “serious and pressing noncompliances” where iPhones, iPads and MacBooks are being manufactured. “Workers’ hours and overtime payment issues are the main focus of the 13-page report,” ABC News reveals. “Within the last 12 months, at all three of Apple’s Foxconn factories — Guanian, Longhua, and Chengdu — the average employee worked over 60 hours per week, the FLA found. The legal limit is 49 hours per week, including overtime.” Changes to these policies are expected to be felt in the bottom line of all companies involved — including both Foxconn and Apple. “I know they will do this because we will monitor it,” explained FLA president and CEO Auret van Heerden. “And they have made this commitment publicly now. It is such a high profile and major commitment, there is no way they wouldn’t do it.” The report completes a month-long investigation which included interviews with 35,000 Foxconn workers selected at random. For their part, Foxconn has agreed to bring their factories into full compliance by next summer, which will result in a significant decrease in overtime for workers there.
Apple Releases iPhoto 9.2.3
Well, that was fast. Just yesterday, we reported that Apple was fast-tracking a new update to iPhoto that promised to improve overall stability as well as address an issue that could cause the application to quit unexpectedly on systems with multiple user accounts. And guess what? Cupertino just pressed the launch buttons on iPhoto 9.2.3, which is now available via Software Update or directly from the company’s support website. Those of you hoping for any last-minute goodies to get added to the update might be disappointed, but go install it anyway — software updates always make us feel like we’re getting something new.
Report: Tim Cook Not Quite The Thermonuclear Warrior Steve Jobs Was
Almost everyone is feeling the fatigue of these ongoing patent disputes over smartphone technology. While former CEO Steve Jobs promised to wage “thermonuclear war” against Android — calling it “stolen” technology — it appears his successor may be approaching the problem with a lighter touch. Bloomberg Businessweek has published a fascinating cover story called “Apple’s War on Android” which sheds new light on Cupertino’s patent battles against competitors HTC, Motorola and Samsung. As it turns out, Apple may be throwing good money after bad, with Stanford University law professor Mark Lemley noting that these battles have cost everyone involved more than $400 million thus far, with little to show for it. Most tellingly, it appears Apple CEO Tim Cook may be changing tactics, abandoning Jobs’ all or nothing strategy in favor of getting things resolved more peacefully. “People familiar with the situation, however, note that top-level executives at both Apple and Samsung have communicated lately about potential settlement options,” the report reveals. “Apple CEO Tim Cook does not seem to share his predecessor’s passion about laying all foes to waste. Cook appears to view litigation as a necessary evil, not a vehicle of cosmic revenge.” While that may be the case, the patent wars show no sign of letting up anytime soon, and ultimately we’re all the worse for it.
Off with Their Heads! Research in Motion Begins Layoffs at the Top
No one likes to see layoffs, but in the case of BlackBerry maker Research in Motion, it was just a matter of time. According to The Globe and Mail, CEO Thorsten Heins is making his first cuts as RIM’s new boss ahead of fourth-quarter and year-end financial results due today, and he’s starting at the top. “Lots of high level people within RIM were let go today,” a source close to the company revealed. “Quite a few. Big shake up.” On the chopping block are “RIM executives at the senior vice-president and vice-president levels,” but sales and marketing positions are also being targeted for additional layoffs. BGR is reporting that RIM shipped 11.1 million BlackBerry smartphones and more than 500,000 PlayBook tablets last quarter, but confirmed lower than anticipated adjusted net income of 80¢ per share on revenue of $4.2 billion, while Wall Street was hoping for 81¢ per share and $4.54 billion. RIM’s fourth-quarter profit is $710 million against $4.08 billion in sales. Finally, the report revels that co-founder Jim Balsillie is not only stepping down as director but also leaving the company entirely. Unfortunately for RIM, they’ve still got a way to go before those BlackBerry 10 models launch later this year…
