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Yuen Chung Kwong

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apple

my reaction to something Steve Jobs said in his present- ation of iphone 4, illustrates my problem with him and apple specifically, and with modern life generally:

the new iphone is 24% thinner

the statement is correct of course, but this is because the previous model had a curved back, so that its thickest part was fairly thick but the thin part quite thin; the new model is flat both front and back, and the overall volume of the new phone is slightly reduced, as is the weight

I react badly to such tactics, because I immediately associate this with the propaganda technique used in communist countries, e.g. after June 4th a PRC government spokeswoman said blatantly: no one was killed in Tiananmen Square on that day--the statement was actually correct: demonstrators blocking streets leading to the square were shot, but by the time the soldiers entered the square itself all resistances had ceased, and it was unnecessary to open fire

similarly, the statement "iphone 4 is the thinnest smart phone" is correct, but it is also wider/longer than Nokia E72, Blackberry, etc; so what's the big deal? the way Apple fans followed Jobs has always reminded me of some cult leader, or red commissar, and as you know, the audience reacted very positively to steve jobs's presentation, and the market reacted very well to his products; my personal ma ladjustment only means I am out of tune with modern life and do not know how to please people, so I do not try

added on 18/1/11 so steve jobs takes another medical leave, less than two years after his liver transplant; in fact signs of deterioration in his health was showing in his photos for the second half of 2010; I would guess there is a high chance he would not be able to resume full time work as Apple CEO after the current treatment

which brings me to another irritating company propaganda story: after Akamai's lewin died in a 911 plane crash, the conversation was 1. he was very important to Akamai 2. his death would have just small impact on Akamai; I have every reason to expect that people would say 1. SJ is very important to Apple 2. his absence would have just small impact on Apple

oh yes, before I forget, if good economic news comes out, wall street would rise, but if poor new comes out, bernanke would cut interest rate, and wall street would also rise...

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added on 7/7/10

just found another example http://www.thestar.com/article/832397--market-flooded-with-older-model-iphones about a huge no. of iphones, some just a year old, being recyled:

Steve Dowling, a spokesman for Cupertino, Calif.-based Apple, said all of the electronic waste collected by his company is processed domestically and not shipped overseas. Internationally, the devices are recycled in the region where they are collected.

Apple accepts iPhones and other devices from customers for recycling at its retail stores. And it provides a free mailer to send in old products, he said.

BuyMyTronics.com and Gazelle also say their waste isn’t sent to developing countries.

“Everything is recycled in first-world countries,” even if that means losing out on some financial gain, Mosley said. “We turn down a lot of business.”

Eric Hikade, 34, the vice-president of products for KaChing Group Inc., waited 90 minutes to buy his new iPhone. He was able to recoup half the price of the phone by selling his old one on Gazelle...

I have no doubt Downing was telling the truth, but how relevant? the iphones people trade in at Apple stores are not "electronic waste"; they would be refurbished and sold through various channels, mostly outside USA; later they will be processed as electronic waste, outside USA - so Apple does export electronic waste, just indirectly - not that there is anything particularly wrong with it, but what he said was still more propaganda than information

Foxconn

After a series of well publicized worker suicides, Foxconn, the taiwan contractor that employes 600,000 people in Shenzhen alone and assembles huge numbers of iphone, ipads, laptops etc for apple and other hightech companies, decided to increase worker salary by 112%, and apple will chip in by giving Foxconn 1-2% of its profits in the near future

Very kind? sure, but it also means Foxconn has been badly underpaying its workers, in order to suppress costs so that it could keep product pricess low and profit high for apple; it is estimated that 500$ iphones and ipads only cost apple 200$, and for each piece Foxconn only earns 12-15$, which is why sacrificing 1-2% of profit by apple makes some a difference for worker salary

the salary change is bound to spread, as the Honda strike settlement has already indicated; many small factories owned by HK and Taiwan businessmen in the region would not be able to survive, but that might not be such a bad thing; for too long businesses have found going into China for exploitation of cheap labour an easy solution, and now they will have to be more inventive, and to invest more in their own regions;

the same applies to  Singapore, which will have to import fewer workers from China to fill positions shunned by its own people, if more china workers can find better paying jobs at home

US follows China

several years ago when my son and I were discussing how things had changed from my generation to his, I said "America has become more and more like China"; like him, you probably have difficulty understanding what I mean; but consider these:

1. the Ivy League used to have students like George Bush,born to privileged families and not used to hard academic work; - nerds like Richard Feyman went to MIT;

today such pampered upper class scions have virtually no chance to get into harvard/ yale: there are simply too many asians (and jews) with high SAT scores and Advanced Placement credits fighting for admission; they have become like Beida/ Qinghua, instead of gentlemanly prep schools like George Bush found at Yale

2. a company like Dell enjoyed a period when it seemed to be able to do no wrong; then suddenly, it seems to be able to do nothing right; how can a company's management so quickly change for the worse? a similar change is taking place with Goldman Sachs; in reverse, HP and Apple went through periods when they seemed to be able to do nothing right, and suddenly start to ride high;

 if you know anything about China, this ought to remind you of cultural revolution; first someone, lin biao, jiang qing, etc, could not no wrong, and then everything he/she did was wrong

Favorite Sayings:-

      

 History repeats, first time as tragedy, second time as farce - Marx

 Those who forget their history are condemned to repeat it - Santayana

 Those who remember history are also condemned to repeat it - Yuen

 Oscar Wilde was wrong about cynics knowing price not value; cynics know value is always less than price - Yuen

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Yuen Chung Kwong