Bits Blog: Apple Takes Aim at Providers of Under-Age Laborers

Bits Blog: Apple Takes Aim at Providers of Under-Age Laborers

Labor recruiters in China last year knowingly provided underage workers to a supplier that built parts for products from Apple and other companies.

That finding was included in Apple’s 2013 report on labor conditions at its suppliers, where more than 1.5 million workers make or assemble the ingredients that go into the iPhone, iPad and other products. The report, posted late Thursday night, is the latest installment in the company’s annual assessment of how well its suppliers are complying with Apple’s code of conduct, which dictates standards for workplace safety and other labor conditions. The 2013 report is the result of 393 audits at Apple suppliers, the comp any said.

Apple said it found no cases of underage workers at its final assembly suppliers in 2012 â€" including big companies like Foxconn â€" but it discovered such violations deeper within its network of suppliers at subcontractors. Apple described in the report how “dishonest third-party labor agents” in China work to skirt Apple’s policy against underage laborers. In January of last year, Apple said it audited a company that makes circuit board components found in Apple’s and other companies’ products, Guangdong Real Faith Pingzhou Electronics Co., and discovered 74 cases of workers who were under the age of 16.

As part of the investigation, it found that Shenzhen Quanshun Human Resources Co., a large labor agency in China’s Shenzhen and Henan provinces, had provided the children to the maker of circuit board parts, conspiring with their families to forge documents to represent them as older than they were. Apple said it reported the labor agency to the provincial governments, which fined the agency and revoked its license. The children were returned to their families, Apple said in the report.

The report said Apple’s audits showed 92 percent compliance with its policy of a 60-hour maximum workweek.

Belkin to Buy Linksys Router Maker From Cisco

Belkin to Buy Linksys Router Maker From Cisco

PLAYA VISTA, Calif. (AP) â€" Belkin, a maker of smartphone cases and computing accessories, said Thursday that it is buying the home networking business unit of Cisco, including the Linksys router brand.

Privately held Belkin, based in Playa Vista, Calif., did not disclose the purchase price, nor did Cisco Systems Inc. The deal is expected to close in March.

Belkin intends to maintain the Linksys brand, as well as honor warranties on current and future Linksys products. The company said that after the acquisition, it will account for about 30 percent of the U.S. retail home and small-business networking market.

Cisco has been moving away from products it sells directly to consumers, and it laid out a strategy last month to become a leading supplier of information technology to big businesses.

In 2011 it shuttered its consumer-oriented Flip video camera business. Last year, it bought NDS Group Ltd., a U.K. software firm that helps cable and satellite TV companies deliver content to subscribers' digital video recorders, tablets, smartphones and other devices.

Hilton Romanski, vice president of corporate business development for Cisco, said in a blog post Thursday that Belkin and Cisco will continue to have a strategic relationship in dealing with service providers.

"We are confident that we have found the best buyer in Belkin," he said. "We look forward to witnessing Belkin's growth as they bring Linksys into their family."

Belkin CEO Chet Pipkin said the company's ultimate goal is to be "the global leader in the connected home and wireless networking space," saying this acquisition was an important step.

Cisco shares fell 5 cents in after-hours trading to $ 20.97 following the announcement, after closing up 40 cents, about 2 percent, at $ 21.02 in the regular session.

Storm and Pension Costs Leave Verizon With Bigger Loss

Storm and Pension Costs Leave Verizon With Bigger Loss

Verizon Communications is still adding plenty of customers and selling a lot of phones, but the impact from Hurricane Sandy and pension costs sank the company’s quarterly earnings.

The company on Tuesday reported a fourth-quarter loss of $ 4.22 billion, or $ 1.48 a share, more than double the loss a year ago. Damages from Hurricane Sandy cost 7 cents a share, and pension charges reduced earnings by $ 1.55 a share, Verizon said. Revenue climbed to $ 30.05 billion, a 5.7 percent increase compared with a year ago.

Analysts had expected adjusted earnings of 50 cents a share, compared to actual adjusted earnings of 45 cents a share, and revenue of $ 29.75 billion, according to Thomson Reuters.

“Verizon seized growth opportunities in the fourth quarter to cap a year of solid progress across the entire business,” said Lowell McAdam, chief executive of Verizon, in a statement. “We delivered a total return of 13.2 percent to shareholders in 2012, and we enter 2013 ready to accelerate the momentum we’ve achieved and create significant shareholder value in the years to come.”

The company, based in New York, said that its wireless business was growing. Over the quarter, it sold 9.8 million smartphones, compared with 7.7 million in the same quarter a year ago, and added 2.1 million contract subscribers, the most valuable type of customer, versus 1.2 million a year ago. The company said its new shared data plans helped increase the money it made from subscribers; average monthly revenue from each account grew 6.6 percent to $ 146.80.

Verizon Wireless, the largest American wireless carrier, is leading the race to build out its fourth-generation network, called LTE, which is faster and more efficient than its predecessor. The company has deployed LTE in 476 cities; AT&T, the second-biggest American carrier, is in a distant second with 135 cities.