Wednesday, February 23, 2011

Apple faces succession questions

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Apple faces a shareholder revolt

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The health of Apple's chief executive is set to top the agenda at the company's annual general meeting, later today.

A group of shareholders is calling on the firm to make public its management succession plan.

Apple's charismatic founder, Steve Jobs, is currently on his third medical leave of absence since being diagnosed with pancreatic cancer in 2004.

Meanwhile, the company is being run by chief operating officer, Tim Cook.

Although shareholders are sympathetic to Mr Jobs' ill health, some are pressing for greater clarity about Apple's future leadership.

Those calls are being led by the Central Laborers' Pension Fund, of Jackson, Illinois.

It holds nearly 11,500 Apple shares, worth around $4 million (�2.4m).

The fund wants Apple to name possible long-term successors, something the company is unwilling to do.

Visionary leader

Such is Mr Jobs reputation as a hand-on, visionary leader, that his prolonged absence from the Cupertino headquarters is seen as potentially damaging.

"Given recent rumours about his poor health, the pressure is increasing on Apple to reassure shareholders and industry watchers that there is a future beyond Steve Jobs," said Gartner analyst Carolina Milanesa.

However, she dismissed the notion that his continued absence meant Apple would lose its way.

"There is more to Apple than Steve Jobs," she said.

Despite his absence, Mr jobs has been spotted visiting the Apple campus since January.

He also attended a recent dinner for technology leaders, hosted by US President Barack Obama.



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Microsoft update &#39;kills&#39; mobiles

Microsoft has withdrawn a software update for its Windows Phone system after it made some handsets unusable.

The problem appears to have affected a small number of mobiles made by Samsung.

Owners reported their phones crashing, and in some cases failing to start up altogether.

Microsoft said it was working to fix the issue and would send out a new update as soon as possible.

The download in question was the first update for Windows Phone since it launched last October.

"In some circumstances it renders the phone completely unusable and can't be restored to a previous version," said Leigh Geary, editor of Coolsmartphone.com.

"It is going to portray Microsoft in a bad light," he added.

Angry users shared their experiences of installing it on user forums.

"I've got an unmodified Samsung Omnia 7, now bricked," wrote one contributor to Microsoft's Answers site.

"My phone is currently unusable, even after hard reset," another user wrote on the same site.

Technical issue

In a statement, Microsoft said: "We have identified a technical issue with the Windows Phone update process that impacts a small number of phones.

"We have temporarily taken down the latest software update for Samsung phones in order to correct the issue and as soon as possible will redistribute the update."

Samsung Omnia owner Alex Roebuck tried to upgrade, but found his phone became unusable.

He said it was unclear if he should take up the issue with his network provider or Microsoft.

"I do not want to be without my handset, so I have decided to wait for a few days to see if a solution can be found, either by Microsoft or the hacker community," he told BBC News.

The update problem comes at a bad time for Microsoft, as it attempts to grow its share of the lucrative smartphone market.

The company recently announced a partnership with Nokia to manufacture handsets running the Windows Phone operating system.



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&#39;Poisoned&#39; workers turn to Apple

Chinese workers injured while making touchscreens for mobile devices, including iPhones, have written to Apple asking it to do more to help them.

137 workers suffered adverse health effects following exposure to a chemical, known as n-hexane.

They claim that the Taiwanese factory owner has not given them enough compensation.

Apple did not offer comment on the letter.

Five workers, including 27-year-old Jia Jingchuan, have signed a letter to chief executive officer Steve Jobs, asking Apple to offer more help over the incidents.

They say that the factory owner has not given enough compensation, has pressured those who took compensation to give up their jobs and failed to offer assurance that workers who may suffer fresh illnesess will have medical bills taken care of.

Long-term damage

Wintek, the Taiwanese company that owns the factory, said that it used the chemical in place of alcohol because it evaporated more quickly and speeded up production of touch screens.

It has now reverted to using alcohol to clean screens.

Workers exposed to n-hexane experienced faintness and tiredness, sweaty hands and feet, numbness in hands and swelling and pain in feet. Some claim they are still suffering ill-effects.

Experts say that daily exposure to n-hexane can cause long-term damage.

In its annual report, published last week, Apple acknowledged the incident.

"In 2010 we learned that 137 workers at the Suzhou facility of Wintek, one of Apple's suppliers, had suffered adverse health effects following exposure to n-hexane, a chemical in cleaning agents used in some manufacturing processes," the report read.

"We required Wintek to stop using n-hexane and to provide evidence that they had removed the chemical from their production lines," it said.

Apple said it also asked the firm to provide adequate ventilation in the factory. It will monitor the plant and will reaudit the facility later this year.

Wintek also supplies components to a number of other companies, including Nokia and HTC.

This is not the first problem Apple has experienced with its Chinese factories.

Its annual report also references an incident at its main China supplier Foxconn's factory, where over a dozen workers committed suicide.

"We were disturbed and deeply saddened to learn that factory workers were taking their own lives," the report read.

It said "suicide prevention specialists" were working with Foxconn to improve conditions.



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