Apple Inc. revealed some labor violations in its supply chain, which included employing under-age workers and also abuses of migrant employees attracted by recruiters to work in factories manufacturing the companys devices.
Apple Inc. disclosed that 23 employees under the age of 16 when hired were found. In addition there was discrimination of women at four of the companys facilities. According to Apple Inc.s eight annual internal audit, 451 multiple-levels reviews were made by the company in its supply chain. The conducted reviews covered facilities in which about 1.5 million people work. Apple made an official announcement saying that it is doing everything possible to eliminate the use of the so-called conflict minerals. In addition, the company also explained that 95% of the facilities have been compelled to keep work to less than 60 hours weekly.
The annual internal audit report in question discloses the behind-the-scenes work of the company, which includes manufacturing Apples devices, from the mining process of minerals used in components, to assembly lines located in China, where the final products are put together. A record 150.3 million iPhone units and 71 million iPad units were reported to have been sold by the company in its latest fiscal year.
The production of many other technology companies, including Hewlett-Packard Co. and Dell Inc. has been relocated from the U.S. to Asia for more than twenty years now. One of the main reasons for this shift in production of many electronic parts is the less expensive labor force in Asia compared to the U.S. As reported by Bloomberg, labor-rights groups have been criticizing Apple over the last few years over issues at suppliers varying from excessive overtime to a series of suicides at Foxconn plants. The Chief Executive Officer of the company – Mr. Tim Cook has been recently bragging about his plans to add more work in the U.S.
Apple Inc.s shares fell by 0.01% on Wednesday to settle at $535.92, marking a one-year change of +14.54%. According to CNN Money, the 44 analysts offering 12-month price forecasts for Apple Inc. have a median target of $587.50, with a high estimate of $777.00 and a low estimate of $360.00. The median estimate represents a +9.62% increase from the last closing price.
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