iPhone 5, Proview, Foxconn Now on Tim Cook’s Agenda

Reports have emerged regarding Tim Cook’s mysterious visit to China, with several sources confirming that Apple’s CEO is there on business.

"Tim is in China meeting with government officials. China is very important to us and we look forward to even greater investment and growth there," said Carolyn Wu, Apple’s China spokeswoman. Wu did not offer any details.

During a quarterly earnings call, last year Cook said China had become the company's second largest market trailing only the United States. 

Research carried out by IDC says the country is expected to become the world's largest smartphone market this year.

Apple currently has deals in place with two wireless operators in China to sell the iPhone. However, the California company hasn’t yet tapped China Mobile, the country’s largest provider of wireless services. It is believed this deal is now on Cook’s agenda for the iPhone 5.

Apple is also embroiled in a trademark dispute with Proview, a Chinese company that is hemorrhaging money, but is alleging that it owns the iPad trademark in the country.

One source close to Proview said, “He should be here to also understand more of the iPad issue and handle the situation.”

Finally, Apple’s CEO is in China to get personally involved with the reviewing of labor standards at assembly firms, sources indicate. One of those is the famous Foxconn Technology Group, which assembles most of Apple’s iPhones and iPads.

In light of Cook’s visit to China, a Hong Kong-based activist group published an open letter, demanding "that Apple ensure decent working conditions at all its suppliers".

In the letter, Students & Scholars Against Corporate Misbehavior cited "poverty wages" and long work hours.

Citing some of the workers they interviewed, the group said: "They describe their daily routine as work, eat and sleep. They described themselves as machines that repeated the same monotonous motion for thousands (of) times a day. With all its success in the global marketplace, Apple undoubtedly has (the) ability to rectify these problems."

Mark Natkin, managing director for Beijing-based Marbridge Consulting, believes Cook's visit should help clear up the company's image in China.

"I think they realize on multiple fronts, it's very important for them to establish strong relationships and then project the most positive image as possible," he said. "If they are smart, they will be working very hard to strengthen their government relations."

Posted in: Mobile Phone, Preview