Apple and China - time for a new PR strategy?

 
Apple logo with Chinese New Year lantern

For the past five years, two things have remained constant about Apple - an inexorable rise in sales and profits, and a steely determination to control its message in the media. But, just as the company basks in the admiration of the financial world after last week's amazing results, is customer concern about where and how all those iPads and iPhones are made going to force a change in its PR strategy?

Let me explain how that strategy works. Its fundamental principle is that Apple will only communicate with the outside world on its terms and to its timetable, and that means at exquisitely stage-managed events in California.

So Apple has never attended exhibitions like the Consumer Electronics Show or Europe's IFA, and a few years ago the firm even severed links with the annual Macworld conference because it did not want to have to fit in with someone else's schedule.

Apple has long been a company where all power is centralised in Cupertino, California, and after Steve Jobs' return from exile to what had become a leaky organisation, he made sure that everyone understood that talking to the media or any outsider without his permission was a sacking offence.

Start Quote

I work for Apple in Cupertino, That's all I can tell you...”

End Quote Logo on company T-shirt

For a while Jobs himself did give the occasional interview, but certainly for the past five years it has been virtually impossible for journalists to ask direct questions to anyone from Apple, except at product launches.

And even when there is an opportunity to talk, the company's PR minders are determined not to let reporters go "off topic" - just look at what happens in this 2007 interview when Benjamin Cohen from Channel 4 News asks the wrong question.

I joked once to a group of Apple PR people that it would be easier to get into North Korea than to get proper access to the firm. They laughed nervously and mentioned that there was a popular T-shirt at the company store with the slogan "I work for Apple in Cupertino, That's all I can tell you..."

But, hey, I hear you say, the company is free to conduct itself with the media any way it chooses, and it's worked pretty well so far. And that is absolutely true. But what happens when American customers and politicians start reading about what seem to be the appalling conditions in which your products are made?

Protester in a Steve Jobs mask takes part in a demonstration against factory conditions in China There is unease about the conditions in which iPhones and iPads are made

There have been a number of exposes over the past 18 months of working conditions at Apple's Chinese factories.

The most startling I've heard came not from a journalist but an actor, Mike Daisey. His monologue telling of how an obsession with all things Apple ended up with him visiting China and finding workers, some apparently as young as 13, putting in 15-hour shifts, was performed recently on the radio programme This American Life.

More seriously for Apple, the New York Times has run a series of articles over the past week examining why America's most successful company can't manufacture its products in the United States, and then taking a closer look at conditions at its suppliers.

Start Quote

I would like to make a significant improvement in the overtime area [and] totally eliminate every case of underage employment”

End Quote Tim Cook, Apple CEO

To be fair to Apple, it has for some years been publishing annual reports detailing the inspections it carries out at its suppliers, and this year it has released a list naming the companies.

But the latest audit shows that at 93 factories, workers put in more than the 60-hour weekly limit prescribed by the American firm, and a third of all the plants inspected did not have sufficient measures to prevent employees suffering occupational injuries.

Now, calls for consumers to start boycotting iPhones or iPads are unlikely to have much of an impact. After all, just about every major electronics brand manufactures in China, and it is far from clear that if you buy a rival phone or tablet it will have been made under better conditions.

It seems clear too that, however miserable the work in the vast factories making every kind of gadget, it is lifting millions of Chinese out of rural poverty.

But in an election year, US politicians may have some tough questions about why a company with $100bn in the bank cannot afford to invest a little more of it at home, creating much needed jobs.

Which brings us back to Apple's PR strategy. Tim Cook, the man who took over from Steve Jobs, told staff in an internal email:

New Apple store in Shanghai China is also Apple's biggest single potential market

"We are defined by our values. Unfortunately some people are questioning Apple's values today... We care about every worker in our worldwide supply chain... Any suggestion that we don't care is patently false and offensive to us."

But so far Mr Cook has shown no sign of wanting to be any more open with the press or public about this or any other issue than his predecessor. The next time he speaks in public will probably be at the launch of the iPad 3.

But he may find that, once he's extolled the new device's awesomeness, he faces questions about whether the way it was manufactured accords with Apple's values.

UPDATE 15:31 GMT

Apple has been in touch, seeking to correct the impression I give in this post that there has been nothing said in public about conditions at its suppliers in China. The company pointed me towards two interviews given by Tim Cook in recent days to Reuters and the Wall Street Journal about this very issue.

Perhaps a subtle shift in Apple's PR strategy under its new leader is already under way.

 
Rory Cellan-Jones Article written by Rory Cellan-Jones Rory Cellan-Jones Technology correspondent

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  • rate this
    +10

    Comment number 20.

    Apple are known for appealing to the more free-spirited and creative people yet as a company have some of the most draconian and non-transparent business practices imaginable. Chances are your high-tech gadget no matter what brand will have some factory and work processes that are deemed unacceptable in the West, Apple are just the same and if you believe otherwise you are kidding yourself.

  • rate this
    +13

    Comment number 19.

    Agree with Nastroika that there is a need for suppliers to show that their contractors - no matter where they are in the world - meet minimum standards with regard to worker health, worker safety and environmental best practice, not industry standard practice. Some form of internationally recognised mark would be needed for this.

  • rate this
    -1

    Comment number 18.

    I read the original New York Times article last week, and also the comments of Thomas Friedman and Paul Krugman (also NY Times columists), of why Apple can't creat more jobs for Americans. Steve Jobs told Barak Obama "these jobs aren't coming back". The crucial factor here is that American (or European) workers cannot match the dynamism of the Chinese. There is a competitive disadvantage

  • rate this
    +9

    Comment number 17.

    RE: "..however miserable the work in the vast factories making every kind of gadget, it is lifting millions of Chinese out of rural poverty"

    Citizens of Western nations too often apply our materialistic values on other nations. I currently live in a community of "rural poverty", the one dollar a day type, as a Peace Corps Volunteer in Zambia. They are happy with strong family connections.

  • rate this
    +7

    Comment number 16.

    Still not sure why people buy Apple stuff. It's just overpriced garbage. Good luck running many games on an Apple machine.

  • rate this
    +16

    Comment number 15.

    Apple cares little for anything except profit. Steve Jobs cared little for anything except Apple.
    Are we surprised that they exploit cheap labour rather than negotiate with US unions?

    Not saying that any other companies are more ethical.

  • rate this
    +21

    Comment number 14.

    Similar arguments were wheeled out in defence of the harsh working environment in the textile mills of the nineteenth century.

    While Apple are by no means the worst offender in terms of how they source their hardware, they're being taken to task because it's so at odds with the corporate image they like to project - of cool stuff hand-knitted from magic dust by happy postgraduate elves.

  • rate this
    0

    Comment number 13.

    Production in developed countries is so expensive because of what's involved with employing people.This could change, solving the unemployment problem, if governments paid everyone a basic wage and only taxed revenue-generating enterprises. Then people who wanted more than the basic wage could work for it, with the company's tax rate being reduced by so much per person employed.

  • rate this
    -15

    Comment number 12.

    Just one question for Rory: Suppose I were to start regularly buying my shopping from Tesco and I discovered that 1) some Tesco employees were working overtime and 2) six of them were underage. Suppose I then published a 27-page report exposing these facts. Would you write an article complaining about *my* grocery procurement practices? Or would you write the article about all Tesco customers?

  • rate this
    +3

    Comment number 11.

    How about paying 100$ more for your next IPhone for an all US manufactured device. Not many hands would go up for that.

    Its not an apple specific problem; all MNCs setup bases in China to cut costs and maximize profit.

  • rate this
    +3

    Comment number 10.

    Apple is the Lada of technology, they make their products look good but inside they use the cheapest of the cheap materials, so when a product breaks, it cannot be fixed and has to be replaced

  • rate this
    +23

    Comment number 9.

    So children are working long shifts in dangerous sweatshops to make the products....but hey...it's ok cos everyone else does it and at least if gets them off the streets.

    Only in an article about Apple would such practices be justified.

  • rate this
    +11

    Comment number 8.

    This reflects the moral vacuum of consumption for consumption's sake.

    Reporting on this issue is not complete without highlighting that it is not entirely Apple's fault (or any other large producer with operations in China).

    This is demand-driven and it is those that engage in the materialistic acquisition of worthless soon-to-be-landfill possessions that need chastising.

  • rate this
    -11

    Comment number 7.

    1) Many companies in Asia, Europe, and N. America use cheap labor in China from the very same factories. Blaming Apple alone for this is incredibly narrow.
    2) Apple has no responsibility to look after laborers in China, that's the Chinese government's job.
    3) Even if these jobs seem rough by western standards, they are voluntary. It's not slave labor. It's also lifting people out of poverty.

  • rate this
    -7

    Comment number 6.

    Apple moving it's production back to America would be even worse for the Chinese. What's better... working 60 hours a week at the age of 13 or starving?

    If Apple have 93 factories in China then they need to employ 93 people directly in China at the factory and ensure basic rights and leave a dollar or two more per product in the producing country.

  • rate this
    -3

    Comment number 5.

    Apple have been taking a lot of flak about the working conditions at Foxconn and others. They make an easy target because they are successful. But they appear to be taking the issue seriously: http://bit.ly/xvDC2e

    Other firms, including Google, are just as culpable and equally coy on the subject. Exercise your journalistic muscles instead of taking the lazy option, Rory.

  • rate this
    0

    Comment number 4.

    The US government wonder why Apple produces products in China and not at home? Because Chinese labour is cheap and they don't pay as much tax on what they make etc. there is no point for a global firm to throw money away by giving jobs to people 'at home', it's a business not a charity..

  • rate this
    +25

    Comment number 3.

    Most products sold in the EU have to display a "CE Mark", to show that they conform to environmental and safety standards, to protect the user.

    Maybe the CE Mark should be extended to require that safety and environmental standards, including working conditions, are adhered to at every stage of manufacture?

  • rate this
    +6

    Comment number 2.

    It should be pointed out that Foxconn are the problem maker and they're involved with many other electronic products including Microsoft's xbox, computers and numerous other mobile phones. In fact everyone on this site probably has something built in a Foxconn factory.

    Can we not start putting pressure on all the companies and stop pretending this is some how just an Apple problem?

  • rate this
    +3

    Comment number 1.

    Not sure how this article was written without the use of the F word?

    Yes, Foxconn, the company who own the factories and is also becomming rather large (despite their depts) on tha back of the devices they make for little cost - not just iDevices either.

    PS the iPad 3 is unlikely to be called such due to the patents in china!

 

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