Hasta La Gadget!

Well what do you know, turns out the LB4400 was a harbinger of things to come. LG Display and iriver just announced a $5M joint venture to manufacture e-book readers. The new China-based company, L&I Electronic Technology (Dongguan) Ltd, sees iriver doing the platform development and product design (thank gawd) while LG provides the EPD displays. It’s interesting to note that the company will act as an OEM/ODM to anyone looking to slap their brand on an e-book reader… after iriver — the company’s first customer — takes the pick of the litter.

Continue reading LG Display and iriver enter joint venture to make e-book readers pretty, affordable

LG Display and iriver enter joint venture to make e-book readers pretty, affordable originally appeared on Engadget on Mon, 14 Jun 2010 08:27:00 EDT. Please see our terms for use of feeds.

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According to Reuters, Foxconn will be raising worker wages an additional 10% from the original 20% raise announced last week. Foxconn spokesman, Arthur Huang, said that the 30% base wage increase takes effect immediately. Foxconn admits that it hopes to earn the respect of its workers and raise efficiency with the pay increase while offsetting rising costs on the Chinese mainland. The company’s shares fell by 2% following the announcement (in a market down just 0.4%, relatively), worried perhaps that the raise would erode operating profits. All this comes as more Foxconn deaths — now at 12 — are being reported. Family of Yan Li, a Foxconn engineer, claims that their son died of exhaustion after working non-stop for 34-hours, then returning for another 12-hours after a 10-hour break. Police have already ruled out suicide and homicide in the case. Nevertheless, Yan Li’s family is demanding 250,000 yuan (about 25 times the worker’s annual base salary) in compensation. Foxconn accepts no responsibility in the matter saying it would only pay out “humanitarian terms” to the family.

Foxconn increases wages by 30 percent as deaths continue to mount originally appeared on Engadget on Wed, 02 Jun 2010 02:04:00 EDT. Please see our terms for use of feeds.

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The highest ranking official in the Guangdong province of China has called for improved conditions for workers in light of the recent slew of suicides at Hon Hai Precision Manufacturing, also known as Foxconn. Wang Yang, the provincial party secretary in the province where the suicides have taken place, said that the government must work together with the company to “take effective measures to prevent similar tragedies from happening again,” While it’s still not clear what is causing the deaths, Wang called for measures such as increasing sports and leisure activities for the workers, and improving communication between worker and employer. “Labor unions in private firms should be improved to facilitate better working conditions and more harmonious relations between workers and employers,” he said, speaking at a conference in Shenzhen on Saturday, just about one day after Foxconn announced it would increase wages of workers up to 20 percent.

Top Chinese official calls for improved worker conditions in response to Foxconn deaths originally appeared on Engadget on Sun, 30 May 2010 14:47:00 EDT. Please see our terms for use of feeds.

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After a string of highly localized suicides at Foxconn’s manufacturing campus captured the world’s attention — again — the company has decided to increase worker wages by about 20 percent. Foxconn says that the pay raise had been planned for some time but did not say when it would be implemented. Mind you, a 20% bump in the third quarter is not unusual as Foxconn ramps up production for the holidays. In fact, Foxconn has given raises by as much as 50% in the past according to Vincent Chen, analyst at Yuanta Securities in Taipei. At the moment, Foxconn entry-level line workers are paid 900 yuan (about $131.80) per month — remuneration that exceeds the local minimum wage in the area. And that’s before bonuses and that oh-so tempting overtime pay are factored in. It’s also worth noting that Foxconn is said by a factory worker surnamed Wang, to pay 100,000 yuan (about 10 times a worker’s annual base salary) to families of suicide victims — a sum he says has tempted some to their death.

Update: CEO Terry Guo is being quoted as saying that Foxconn plans to relocate some facilities and about a fifth of its Shenzhen workforce (that’s about 80,000 people based on the 400k estimates tossed around) to western parts of China so that the workers can be closer to their families. Meanwhile, Sony, Nokia, and Nintendo, all Foxconn customers, have joined Apple, Dell, and HP in expressing their public concern over the working conditions in Foxconn.

Foxconn raising wages, relocating 20 percent of Shenzhen workers closer to home (updated) originally appeared on Engadget on Fri, 28 May 2010 06:34:00 EDT. Please see our terms for use of feeds.

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On an 84-degree day (29 C) at a Chinese factory housing some 400,000 workers, at least 2 of them were enjoying the Foxconn swimming pool. We know this because the notoriously secretive Foxconn CEO, Terry Gou, was showing off some of the workers’ facilities to the press to assure the world that he was not operating a sweatshop. Foxconn has received a great deal of attention lately after a rash of suicide attempts this year left 2 workers seriously injured and 9 people dead. While these numbers are relatively low compared to World Health Organization data showing a suicide rate of about 14 deaths per 100,000 Chinese, Foxconn contends that there were only one or two suicides a year previously at its Shenzhen factories. Today Gou announced that Foxconn has 70 psychiatrists and 100 voluntary workers trained to help prevent suicide. Great, problem solved.

As you probably know, Foxconn is behind the assembly of many major consumer electronics brands including HP, Nokia, Dell, and Apple — the latter two have come out with statements expressing their respective concern. Apple had this to say:

“We are saddened and upset by the recent suicides at Foxconn. We’re in direct contact with Foxconn senior management and we believe they are taking this matter very seriously. A team from Apple is independently evaluating the steps they are taking to address these tragic events and we will continue our ongoing inspections of the facilities where our products are made.”

And Dell this:

“We expect our suppliers to employ the same high standards we do in our own facilities. We enforce these standards through a variety of tools, including the Electronics Industry code of conduct, business reviews with suppliers, self-assessments and audits.”

During today’s press event, Tang Wenying, a young Foxconn line supervisor said, “This is a good place to work because they treat us better than many (other) Chinese factories.” And that may be the most worrisome aspect of this: Foxconn, by all accounts, provides some of the best conditions for the Chinese workers it employs. What does that say about the anonymous (and thus, invisible) chain of small suppliers and secondary assembly facilities nobody reads about?

Update: HP says that it is also investigating “the Foxconn practices that may be associated with these tragic events.”

Apple, Dell, and HP comment on suicides as Foxconn CEO shows off the pool originally appeared on Engadget on Wed, 26 May 2010 06:43:00 EDT. Please see our terms for use of feeds.

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