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	<title>Brainstorm Tech: Technology blogs, news and analysis from Fortune Magazine &#187; Foxconn</title>
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		<title>Brainstorm Tech: Technology blogs, news and analysis from Fortune Magazine &#187; Foxconn</title>
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		<title>Report: Foxconn paid iPhone suicide&#039;s family $44,000 &#8211; updated</title>
		<link>http://brainstormtech.blogs.fortune.cnn.com/2009/07/27/ny-times-foxconn-paid-iphone-suicides-family-44000/</link>
		<comments>http://brainstormtech.blogs.fortune.cnn.com/2009/07/27/ny-times-foxconn-paid-iphone-suicides-family-44000/#comments</comments>
		<pubDate>Mon, 27 Jul 2009 11:17:39 +0000</pubDate>
		<dc:creator>Philip Elmer-DeWitt</dc:creator>
				<category><![CDATA[Apple 2.0]]></category>
		<category><![CDATA[Apple]]></category>
		<category><![CDATA[Foxconn]]></category>
		<category><![CDATA[iPhone]]></category>
		<category><![CDATA[Suicide]]></category>

		<guid isPermaLink="false">http://brainstormtech.blogs.fortune.cnn.com/?p=9249</guid>
		<description><![CDATA[Much has been written &#8212; especially in China &#8212; about the case of Sun Danyong, the 25-year-old Foxconn employee who jumped to his death from a 12th-story apartment in Shenzhen two weeks ago after being interrogated about a missing next-generation iPhone prototype.
The story cast a harsh light on working conditions at Foxconn &#8212; the brand [...]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=brainstormtech.blogs.fortune.cnn.com&blog=8466345&post=9249&subd=fortunebrainstormtech&ref=&feed=1" />]]></description>
			<content:encoded><![CDATA[<div class='snap_preview'><br /><p><img class="alignright size-full wp-image-9324" style="border:1px solid black;margin:5px 15px;" title="Foxconn logo" src="http://fortunebrainstormtech.files.wordpress.com/2009/07/picture-2.png?w=232&#038;h=98" alt="Foxconn logo" width="232" height="98" />Much has been <a href="http://www.techmeme.com/090721/p8#a090721p8">written</a> &#8212; especially in China &#8212; about the case of Sun Danyong, the 25-year-old Foxconn employee who jumped to his death from a 12th-story apartment in Shenzhen two weeks ago after being interrogated about a missing next-generation iPhone prototype.</p>
<p>The story cast a harsh light on working conditions at Foxconn &#8212; the brand name of Taiwan-based Hon Hai, one of the world&#039;s largest manufacturers of computer components &#8212; and the culture of secrecy that surrounds Apple (<a href="http://money.cnn.com/quote/quote.html?symb=AAPL">AAPL</a>) product development. (Apple issued a statement last week that it was &#034;saddened by the tragic loss of this young employee.&#034;)</p>
<p>Monday&#039;s <a href="http://www.nytimes.com/2009/07/27/technology/companies/27apple.html?_r=1&amp;pagewanted=all"><em>New York Times</em></a> moves the story forward in several new directions &#8212; including Foxconn&#039;s claim that products in Sun&#039;s charge had gone missing before and a report that the company has tried to make amends by giving Sun&#039;s girlfriend an Apple laptop computer and his family 300,000 renminbi, or more than $44,000.</p>
<p>[UPDATE: The <a href="http://www.google.com/hostednews/ap/article/ALeqM5gqapx2lK-uibyTOgsw-gXr-RMyHQD99NDH282">Associated Press</a>, quoting an unnamed Foxconn official, reported a higher figure Tuesday: $52,600 to the parents, plus $4,385 per year as long as either of them remains alive.]</p>
<p><span id="more-9249"></span></p>
<p>The <em>New York Times</em> piece, written by Shanghai-based business reporter David Barboza, summarizes the facts as we know them: that Sun was given 16 prototype iPhones in early July to deliver to R&amp;D but only 15 were received; that he complained to friends that he was beaten and humiliated by the factory&#039;s security team (a charge the security guard vehemently denies); and that shortly before he died, on the morning of July 16, Sun sent a text message to his girlfriend that said, in part,</p>
<blockquote><p>&#034;Dear, I’m sorry. Go back home tomorrow<a title="A picture of Mr. Sun and the message he sent, from shxb.net." href="http://www.shxb.net/html/20090723/20090723_181482.shtml" target="_blank"></a>. I ran into some problems. Don’t tell my family. Don’t contact me. I’m begging you for the first time. Please do it! I’m sorry.”</p></blockquote>
<p>James Lee, general manager of China operations at Foxconn, told the <em>Times</em> that his company had a duty to protect the intellectual property of its clients &#8212; not an easy thing to do in the hotbed of electronics piracy and counterfeiting that is Shenzhen.</p>
<p>Lee also claimed that this was not the first time the company had had problems with Sun Danyong. &#034;Several times he had some products missing, then he got them back,&#034; Lee told the <em>Times</em>. &#034;We don’t know who took the product, but it was at his stop.&#034;</p>
<p style="text-align:center;"><strong><a href="http://brainstormtech.blogs.fortune.cnn.com/2009/07/19/report-crippled-iphone-coming-to-china-in-september/">Report: Foxconn building &#039;crippled&#039; iPhone for Chinese market</a></strong></p>
<p>To defend his company against charges of unfair labor practices, Lee granted the <em>Times</em> a rare tour inside two Foxconn campuses, including the one where Sun worked. &#034;The campuses were so large,&#034; writes Barboza, &#034;they contained retail stores, banks, post offices and high-rise dormitories with outdoor swimming pools.&#034;</p>
<p>But perhaps the most telling section of the story is the part where the <em>Times</em> is interviewing Sun&#039;s family, and his older brother, Sun Danxiong, tells the paper about the gift of $44,000 and the Apple laptop for Sun&#039;s girlfriend.</p>
<blockquote><p>&#034;On Thursday, with his son Danxiong standing nearby, holding a box with Sun Danyong’s ashes, the father, Sun Yangdong, said Foxconn had treated the family well. But he said he was still in shock that his son could leap from a building because he was so gentle and tender.</p></blockquote>
<blockquote><p>Soon after, a security guard, who was joined by two men wearing Foxconn shirts, threatened to “beat up” a journalist’s translator if she persisted in asking the family questions. Foxconn officials later said the guard was not on their staff and might have been with the police bureau.&#034; (<a href="http://www.nytimes.com/2009/07/27/technology/companies/27apple.html?_r=1&amp;pagewanted=all">link</a>)</p></blockquote>
<p>According to Evan Osnos, writing for the <a href="http://www.newyorker.com/online/blogs/evanosnos/iphone-suicide/"><em>New Yorker</em></a>, Sun was an archetypal member of the Shenzhen factory world &#8212; a noticeably quiet young man who grew up in an isolated mountain village and moved to the city shortly after graduating from Harbin Institute of Technology, one of China’s best schools. Profiles of Sun in the Chinese language <em>Southern Daily</em> say his family was poor enough that Sun would erase the old pencil notes from his school notebooks so he could use them again and again.</p>
<p>Osnos quotes from a separate <em>Southern Daily</em> story about Gu Qinming, the security manager who interrogated Sun. Gu says he suspected the employee of lying, but denies having beaten or confined him. He says he merely jabbed Sun in the shoulder, asking, “Are you a man?”, after Sun allegedly blamed a female colleague for the missing phone. Gu, whose name, address and personal details were broadcast in China over the Internet, told <em>Southern Daily</em> that he is unable to return to his home.</p>
<p>Photo courtesy of <a href="http://arstechnica.com/apple/news/2006/06/4395.ars">ArsTechnica</a>.</p>
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		<slash:comments>4</slash:comments>
	
		<media:content url="" medium="image">
			<media:title type="html">Philip Elmer-DeWitt</media:title>
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		<title>iPhone suppliers expect to ship 10 million units by Q3 [Update]</title>
		<link>http://brainstormtech.blogs.fortune.cnn.com/2008/06/19/iphone-suppliers-expect-to-ship-10-million-units-in-q3-alone/</link>
		<comments>http://brainstormtech.blogs.fortune.cnn.com/2008/06/19/iphone-suppliers-expect-to-ship-10-million-units-in-q3-alone/#comments</comments>
		<pubDate>Thu, 19 Jun 2008 18:09:34 +0000</pubDate>
		<dc:creator>Philip Elmer-DeWitt</dc:creator>
				<category><![CDATA[Apple 2.0]]></category>
		<category><![CDATA[3G]]></category>
		<category><![CDATA[Apple]]></category>
		<category><![CDATA[Broadcom]]></category>
		<category><![CDATA[Component suppliers]]></category>
		<category><![CDATA[Foxconn]]></category>
		<category><![CDATA[Infineon]]></category>
		<category><![CDATA[iPhone]]></category>
		<category><![CDATA[iPhone 3G]]></category>

		<guid isPermaLink="false">http://fortuneapple20.wordpress.com/?p=760</guid>
		<description><![CDATA[
[Update: Barron's Eric Savitz suggests here that when DigiTimes writes "total shipments of 3G iPhones are expected to top 10 million units in the third quarter" it means BY the third quarter, not IN the third quarter. We suspect he is right. Headline and body of text corrected accordingly.]
With the simultaneous launch of the iPhone [...]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=brainstormtech.blogs.fortune.cnn.com&blog=8466345&post=7738&subd=fortunebrainstormtech&ref=&feed=1" />]]></description>
			<content:encoded><![CDATA[<div class='snap_preview'><br /><p><a href="http://fortuneapple20.files.wordpress.com/2008/06/images1.jpeg"><img class="alignright alignnone size-full wp-image-725" style="float:right;margin:5px 15px;" src="http://fortuneapple20.files.wordpress.com/2008/06/images1.jpeg?w=106&#038;h=128" alt="" width="106" height="128" /></a></p>
<p>[Update: Barron's Eric Savitz suggests <a href="http://seekingalpha.com/article/82030-apple-confusion-reigns-over-iphone-sales-projections">here</a> that when DigiTimes writes "total shipments of 3G iPhones are expected to top 10 million units in the third quarter" it means BY the third quarter, not IN the third quarter. We suspect he is right. Headline and body of text corrected accordingly.]</p>
<p>With the simultaneous launch of the iPhone 3G in 22 countries on July 11, Apple&#039;s Taiwanese suppiers are anticipating a bigger-than-expected ramp-up in the third quarter of 2008, according to a report Thursday in Taipei-based <a href="http://www.digitimes.com/news/a20080619PB200.html">DigitTimes</a>.</p>
<p>DigiTimes&#039; report is based on an article in the Chinese-language Commercial Times, a publication with unusually good sources among Apple&#039;s far-eastern component manufacturers and assemblers. It quotes an unnamed supplier to the effect that these component makers expect to ship 10 million units to Apple before Sept. 30.</p>
<p>Apple&#039;s (<a href="http://money.cnn.com/quote/quote.html?symb=AAPL">AAPL</a>) oft-repeated target is to sell 10 million iPhones in all of 2008. As of June 9, the company had sold 6 million first-generation iPhones, according to Steve Jobs. The company reported more than 3.7 million sold in 2007, which means some 2.3 million have already been sold so far this year.</p>
<p>DigiTimes also translates and reprints a list of the iPhone&#039;s suppliers that was compiled by Commercial Times. We&#039;ve copied it below. As <a href="http://www.appleinsider.com/articles/08/06/19/iphone_3g_component_suppliers_revealed_by_chinese_paper.html">AppleInsider</a> notes, Infineon (<a href="http://money.cnn.com/quote/quote.html?symb=IFX">IFX</a>), Broadcom (<a href="http://money.cnn.com/quote/quote.html?symb=BRCM">BRCM</a>) and Foxconn (Hon Hai) look like the big winners.</p>
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		<media:content url="" medium="image">
			<media:title type="html">Philip Elmer-DeWitt</media:title>
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		<title>Apple picks trusted supplier to assemble 3G iPhone</title>
		<link>http://brainstormtech.blogs.fortune.cnn.com/2008/03/28/apple-picks-trusted-supplier-to-assemble-3g-iphone/</link>
		<comments>http://brainstormtech.blogs.fortune.cnn.com/2008/03/28/apple-picks-trusted-supplier-to-assemble-3g-iphone/#comments</comments>
		<pubDate>Fri, 28 Mar 2008 15:39:01 +0000</pubDate>
		<dc:creator>Philip Elmer-DeWitt</dc:creator>
				<category><![CDATA[Apple 2.0]]></category>
		<category><![CDATA[3G]]></category>
		<category><![CDATA[Apple]]></category>
		<category><![CDATA[Foxconn]]></category>
		<category><![CDATA[iPhone]]></category>

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		<description><![CDATA[It should be no surprise that Apple has turned to Foxconn, the trade name for Hon Hai Precision Industry Co., to build the next generation iPhone.
China&#039;s Commercial Times reported early Friday that Foxconn was competing for the business, and the Dow Jones newswire, citing &#034;a person familiar with the situation,&#034; now reports that Apple (AAPL) [...]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=brainstormtech.blogs.fortune.cnn.com&blog=8466345&post=7477&subd=fortunebrainstormtech&ref=&feed=1" />]]></description>
			<content:encoded><![CDATA[<div class='snap_preview'><br /><p><a href="http://fortuneapple20.files.wordpress.com/2008/02/chinese-iphone.png" title="chinese-iphone.png"><img src="http://fortuneapple20.files.wordpress.com/2008/02/chinese-iphone.png" alt="chinese-iphone.png" align="right" hspace="15" /></a>It should be no surprise that Apple has turned to Foxconn, the trade name for Hon Hai Precision Industry Co., to build the <a href="http://apple20.blogs.fortune.cnn.com/2008/03/27/closing-in-on-the-3g-iphone/">next generation iPhone</a>.</p>
<p>China&#039;s <i>Commercial Times</i> reported early Friday that Foxconn was competing for the business, and the <i>Dow Jones</i> newswire, citing &#034;a person familiar with the situation,&#034; now reports that Apple (<a href="/quote/quote.html?symb=AAPL">AAPL</a>) has awarded the Taiwan-based firm the exclusive contract. (<a href="http://money.cnn.com/news/newsfeeds/articles/djf500/200803280536DOWJONESDJONLINE000436_FORTUNE5.htm">link</a>)</p>
<p>Apple has chosen a supplier it knows and trusts. Although it keeps a relatively low profile in the United States, Foxconn is one of the world&#039;s largest manufacturers of electronics and computer components. It built many of the first generation iPhones, as well as MacBook Pros, MacBook Airs, iPod nanos and Mac Minis.</p>
<p>It also makes motherboards for Intel (<a href="/quote/quote.html?symb=INTC">INTC</a>), Dell (<a href="/quote/quote.html?symb=DEL">DEL</a>) and HP (<a href="/quote/quote.html?symb=HPQ">HPQ</a>), Playstations for Sony (<a href="/quote/quote.html?symb=SNE">SNE</a>), Wii&#039;s for Nintendo, Xbox 360s for Microsoft (<a href="/quote/quote.html?symb=MSFT">MSFT</a>), cell phones for Motorola (<a href="/quote/quote.html?symb=MOT">MOT</a>) and Kindles for Amazon (<a href="/quote/quote.html?symb=AMZN">AMZN</a>).</p>
<p>Foxconn employs nearly half a million people and does most of its manufacturing in mainland China. It was China&#039;s largest exporter in 2007.</p>
<p>In 2006 the British press charged that it used abusive employment practices. Apple investigated those charges and declared them largely unfounded, although the company did find that some Foxconn employees were working longer than the 60 hours a week Apple&#039;s Code of Conduct finds acceptable.</p>
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			<media:title type="html">Philip Elmer-DeWitt</media:title>
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