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Apple secretive about its supply chain

Apple secretive about its supply chain

Write: Shalom [2011-05-20]

A new iPhone4 is displayed in the Apple flagship store in New York. [Photo / Xinhua]

BEIJING - Chinese environmental groups on Thursday singled out iPhone maker Apple Inc for failing to properly oversee its Chinese suppliers, leading to poor environmental and work conditions, and dozens of factory workers being poisoned.

A report by 36 groups, The Other Face of Apple ranks the United States-based consumer electronics giant as the least responsive among more than 29 multinational technology companies that were surveyed about pollution and work conditions at factories in their supply chain in China.

"We found Apple did not fulfill its commitment in ensuring its supply chain's work safety and environmental standards, and treating workers with respect and dignity," said Ma Jun, director of the Institute of Public and Environmental Affairs (IPE), the main author of the report that was released on Thursday.

The criticism came amid Apple's rising popularity and firmer foothold in the Chinese market, as the opening of more stores on the mainland bears witness. The company announced this week that sales revenue from the mainland, Hong Kong and Taiwan totaled $2.6 billion, about 10 percent of its total revenue.

However, it is accused of aggressive pricing and being secretive about the management of its supply chain in Chinese factories, which have assembled most of Apple's products to date.

One incident cited by the report was when 49 workers fell sick at Lianjian Technology Company in the eastern city of Suzhou, owned by Taiwan-based Wintek, which reportedly makes touchscreens for Apple. Lianjian was accused of using N-Hexane, a toxic solvent, to clean screens.

The report said Apple declined to respond to this particular incident and insisted it would not disclose any information about its suppliers.

Last year, Apple's main supplier on the mainland, Taiwan-based high-tech company Foxconn, was hit by more than a dozen suicides that critics blamed on harsh working conditions and a militaristic culture.

Apple's CEO Steve Jobs denied the allegations, saying Foxconn is not a sweatshop. "Although every suicide is tragic, Foxconn's suicide rate is well below the China average," the report quoted Jobs as having written in response to an Internet user's question about its credentials for social responsibility.

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