Why Apple's Supply Chain Problem is Such a Big Deal

If you clicked this link, your thought was likely, "Bryant's a fanboy, let's see what kind of spin he puts on this horrific topic." Or, you might be someone who has tweeted to me, emailed to me, or trolled my Facebook timeline with this NY Times article released the other day.

The gist of the article is this: Apple employs hundred of thousands of poor Chinese workers who spend their entire lives connecting cables inside of iPhones for very little pay. The article goes further than that though, too. The article makes the pronouncement that Apple cares very little about the working conditions of their supply chain and you should feel guilty for owning an iPhone, iPad, or iPod. Here's a taste:

Employees work excessive overtime, in some cases seven days a week, and live in crowded dorms. Some say they stand so long that their legs swell until they can hardly walk. Under-age workers have helped build Apple’s products, and the company’s suppliers have improperly disposed of hazardous waste and falsified records, according to company reports and advocacy groups that, within China, are often considered reliable, independent monitors.

Tim Cook, the newly appointed CEO, made it clear in an email to employees that he was 'outraged' by the accusations that the article made and was deeply offended. It's not hard to see why...The New York Times and Apple have mostly had a very cordial relationship. The NYT's website is included in iOS's default bookmarks and Steve often visited their site first when demoing a new product. The Times was quick to adopt the iPad as a way of releasing their content and the relationship has worked for the betterment of both companies. Everything seemed fine.

Until this.

Even today, the BSR, who is quoted heavily throughout the Times's piece refuted much of its claims. I suspect that we haven't seen anywhere near the end of this.

As a point of reference, here's a short clip of Steve Jobs reacting to the Wall Street Journal's questions regarding the suicides and suicide attempts by Foxconn employees a while back:

[youtube=http://www.youtube.com/watch?v=2gOu50HaEvs&w=640&h=385]

Again, we haven't heard the end of this. As we shouldn't.

The poor workers. They're worked hard, worse than many Americans will ever work, and when Apple wants to lower production costs and raise quality of the products, something's got to give. The media is beginning to claim that the cost of these two desires is human lives and well being. In fact, the NYT titled their piece, "In China, Human Costs Are Built Into an iPad."

It's linkbait, but it starts a good conversation. Why is this so important? Why does Apple take the heat?

Sure, it's because theyre bigger than everyone else. That's what got Nike in so much trouble. Sure, it's because they are a hugely profitable company. They made more in profit than Google brought in total last quarter. Sure, it's because people love their products. But I think this has become a bigger deal for another reason.

I think it's because their products speak a bit of hope.

Andy Crouch referred to this phenomenon when he spoke about the gospel that Steve Jobs preached in a piece immediately following Steve's death. I don't agree with the correlations that Andy drew throughout the entire piece, but his general thesis is good. Steve had a different, often better, way of envisioning how a human interacts with a product. (Andy's piece comes off a bit harsh at times, though I know that Andy is an Apple fan because when I saw him speak live once he referred to his MacBook Pro as the true representation of 'perfection' on earth.)

Apple's mindset has always been about Thinking Differently. Using a computer sucked until 1984 when the Macintosh was introduced. MP3 players sucked until 2001 when the iPod and iTunes made it possible to actually enjoy listening to digital music. Cell phones sucked until 2007 when the iPhone finally made a smart phone easy to use. Tablets sucked until 2010 when the iPad reimagined what a tablet was and how humans interact with it.

Steve's quotes. Apple's marketing campaigns. The products themselves. All of these presented nearly hyperbolic statements about what it was like to use an Apple computer and how much there was to love about them. Sites like "CultofMac.com" and documentaries like "Mac Heads" and terms like "fanboy" are signs of the effectiveness of this message. (I'll admit, I often get accused of buying into the Apple gospel more than the Jesus Gospel. I'd argue that that might be because Apple is better at presenting it than our churches are right now, but that's an argument for another day...)

When you use an iPhone, you fall in love with it. Or, most people do. Apple is no longer an electronic company; they become an ideology, a mindset, and a way of life. Apple has engrained this "Think Different" message into our understandings of who they are as a company. When we love their products, we want to believe that the truly are better than everyone else. In every single aspect.

Yet this Foxconn situation seems to be the same as everyone else. I remember getting in trouble at a young age and my first response was to say that 'everyone else was doing it!' To which my parents were quick to point out, "Perhaps, but you're better than that." These poor (literally) workers in these factories are indicative of what is wrong with the world we're in and we'd like to think that Apple can rise above those problems. For God's sake, they've risen above it with all of their products!

I hope Tim and Steve are (were :-( ) right that they are actively working to take greater measures in treating their workers fairly. They're certainly working to spread a good word about how much better they are than many other suppliers. I hope that what they say is true, is true, and that it will continue to get better quickly.

Apple has nearly $100 Billion in the bank. If there is one company who can actually Think Different when it comes to this type of labor ethics, it's Apple. They have the means.

I'd like to see them turn this around. Not just politically. Not just through marketing. I'd like to see them make gigantic strides and stand up for the right and well being of humans.

Because that's what Apple does. They Think Different.

Please, dear God, don't let that thought leave with Steve.

-B

Steve Steps Down

Over the past six years or so, I've become increasingly obsessed with Apple Computer (of course, they dropped the "computer" part of their name several years back).

Of it, probably, my greatest obsession has been with one of its cofounders, Steve Jobs.

The man is remarkable. He has a keen sense of taste, a clear vision for the future, he is unapologetic about his decision making, and Apple has been, thus far in history, unable to turn profit and survive without his leadership. He literally took a company on the verge of disaster and bankruptcy and spent ten years growing it into the colossal giant that it is today. He knows how to hire great people who design and build great products that help us with our everyday lives.

Today, Steve stepped down as CEO. He's leaving his highly influential position (some might say, controlling) in the company that he built. In his parents' garage.

His letter:

To the Apple Board of Directors and the Apple Community:

I have always said if there ever came a day when I could no longer meet my duties and expectations as Apple’s CEO, I would be the first to let you know. Unfortunately, that day has come.

I hereby resign as CEO of Apple. I would like to serve, if the Board sees fit, as Chairman of the Board, director and Apple employee.

As far as my successor goes, I strongly recommend that we execute our succession plan and name Tim Cook as CEO of Apple.

I believe Apple’s brightest and most innovative days are ahead of it. And I look forward to watching and contributing to its success in a new role.

I have made some of the best friends of my life at Apple, and I thank you all for the many years of being able to work alongside you.

Steve

Short and sweet, to the point, as usual.

I have often referenced Steve's leadership and vision for the company in regards to Walt Disney's influence in the monstrosity that is Disney. I have even mentioned before that I feared the way that Steve might leave Apple, as Walt left Disney. But at this point it is clear that this won't be the way it will go.

While this knowledge might make this a little easier, it doesn't truly make the concept of losing the man who brought all this into being any easier to swallow. Steve will no longer be leading this company. It will be weird, it will be difficult, and it will be uneasy.

Is it a rough day? Yes. Is it a sad day? I don't think so.

I suppose the real question is: where does Apple, as a company, go from here?

Undoubtedly Tim Cook will step in as Apple's CEO, and Steve will continue to have a significant amount of influence in the accountability of Cook and future product decisions. The truth remains though...the boat has a new captain.

Here's where we are fortunate: Cook knows what he is doing. Cook has been managing operations for quite some time now and has brought Apple the sales numbers that we keep hearing about. Cook managed product shortages when people just HAVE to get their hands on them, and he certainly added to the continuing profit gains Apple's been reporting. The good news is that I think Apple is going to be alright.

One of the things that I've done a lot of in the past few years is listen to every extended interview Steve Jobs has given throughout time. There aren't many of them, but Steve has always chosen his words and actions carefully, and that makes these presentations and interviews unbelievably interesting to parse.

Even the biggest anti-Apple pundit you might encounter will admit that Steve has preached, yes...preached, a mindset and attitude to his people: Great products, great products, great products. He has always defended Apple by preaching and evangelizing about the products. He has an eye for beauty, simplicity, and innovation and is unafraid to make difficult decisions. He has always believed that if Apple makes good products, and they tell people about them, people will buy them. If enough people buy them, he gets to come to work tomorrow. This is his understanding of capitalism and a free market. This is his understanding of the world.

And so, the questions remains: will Steve's vision be carried through into the future?

This question, obviously, remains to be answered. Tim Cook is not the stage man that Jobs is. Tim Cook does not have persona that Jobs has. But Tim Cook has proven himself as a businessman. Tim Cook has proven himself as a manager. Tim Cook has proven himself as an unbelievable CEO.

Apple is going to be more than alright. Apple is going to be stellar.

What's my proof? Apple's culture.

Steve has left a message and mission. Steve has left a culture. Steve's words, thoughts, and dreams will forever be captured in his interviews, products, and legacy. If you meet someone at the Apple store, or any employee of Apple, you will know what I am talking about. It becomes more than a selling point. It becomes a life, a system, a love.

Outsiders think we are crazy. We probably are.

"While some see them as the crazy ones, we see genius. Because the people who are crazy enough to think they can change the world, are the ones who do."

[youtube=http://www.youtube.com/watch?v=4oAB83Z1ydE&]

Steve said it best:

I believe Apple’s brightest and most innovative days are ahead of it.

-B

Friends, I'd like to leave you with my favorite of Steve's videos. This is why I think he "gets it".

[youtube=http://www.youtube.com/watch?v=ob_GX50Za6c&]

To honor Steve, I wrote this entirely on my iPad. The future, friends. The future.

Everything is a Remix: Progress and Innovation

This is the third installment in the "Everything is a Remix" series by a guy named Kirby. These are VERY well done and if innovation, progress, and the future of creation are of any interest to you, you ought to sit back and watch this for 11 minutes.  Make sure you stay until the end, after the credits. [vodpod id=Video.11432879&w=425&h=350&fv=]

It is, without a doubt, an interesting take on the world and the progress within it. It is true that Apple did not outright invent Graphical User Interfaces (most people ought to be aware that it was a visit to the Xerox campus that changed Steve Jobs.  He has been quoted as saying, "They showed us three things that day but I didn't see the other two.  I was so caught up with the first thing that I missed the rest of the presentation.") Apple did, however, innovate in many ways.  As the video points out, they made things easier, they made things make more sense.  Those are innovations. They innovated in price, too, which made it more acceptable to the commercial market.

I don't think anyone doubts that one company or person has created things that were simply unheard of before. Some do, however, have better methods of creation and presentation that truly allows something to become...new. Apple has done this in computers since the late 70's.  Disney has done this in animation and theme parks since well before that.

This quote from Henry Ford can be found at the end of the video:

I invented nothing new.

I simply assembled the discoveries of other men behind whom were centuries of work. Had I worked fifty or ten or even five years before, I would have failed.

So it is with every new thing.  Progress happens when all the factors that make for it are ready, and then it is inevitable.

To teach that a comparatively few men are responsible for the greatest forward steps of mankind is the worst sort of nonsense.

-Henry Ford

-B

John Gruber says Kirby "nailed it."  I think I agree.