Low-cost iPhone named in China Labor Watch report

A report citing worker abuse at Apple supplier Pegatron mentions rumored iPhone with plastic coverProof of Apple's much-rumored, low-cost iPhone might have been revealed inadvertently in a new report.

Released today by watchdog group China Labor Watch, the report accuses Apple supplier Pegatron of several worker abuses, including safety violations, poor living conditions, and excessive overtime.

Page 11 of the 62-page report describes Pegatron as assembling cell phones and tablets for Apple. "Its assembled products include iPhone 4, iPhone 4s, iPhone 5, and low-priced plastic iPhones," the report said.

The long, difficult day in the life of one factory worker is detailed further in the report. Page 28 describes that worker's task with the plastic iPhone:

Today's work is to paste protective film on the iPhone's plastic back cover to prevent it from being scratched on assembly lines. This iPhone model with a plastic cover will soon be released on the market by Apple. The task is pretty easy, and I was able to work independently after a five-minute instruction from a veteran employee. It took around a minute to paste protective film on one rear cover. The new cell phone has not yet been put into mass production, so quantity is not as important.

The report's purpose apparently was to find out how a low-cost iPhone can be produced.

The executive summary specifically states: "Apple is preparing to release a cheap iPhone. Just how does a prosperous company like Apple produce a discounted version of its phones?" Another question asks: "So what is the competitive advantage that Pegatron has utilized to win Apple's order of the cheap iPhone?"

The report blames some of the violations on the rush to create a cheaper iPhone:

At this moment, in Shanghai, China, workers in Apple's supplier factory Pegatron are monotonously working long overtime hours to turn out a scaled-back, less expensive version of the iPhone. Six days a week, the workers making these phones have to work almost 11-hour shifts, 20 minutes of which is unpaid, and the remainder of which is paid at a rate of $1.50 an hour ($268 per month) before overtime. This is less than half the average local monthly income of $764 and far below the basic living wage necessary to live in Shanghai, one of costliest cities in China. So these workers rely on long overtime hours. If a worker does not finish three months at Pegatron, the dispatch company that got the worker hired will deduct a large portion of his wages.

The report goes on to highlight the labor violations claimed by China Labor Watch, which sent investigators to three Pegatron factories to conduct almost 200 interviews with workers from March to July.China Labor Watch said it found at least 86 labor rights violations, including 36 legal violations and 50 ethical violations, across 15 categories: dispatch labor abuse, hiring discrimination, women's rights violations, underage labor, contract violations, insufficient worker training, excessive working hours, insufficient wages, poor working conditions, poor living conditions, difficulty in taking leave, labor health and safety concerns, ineffective grievance channels, abuse by management, and environmental pollution.

In response to the report, Apple sent a statement to The Wall Street Journal in which it said it has been in contact with China Labor Watch to investigate the allegations. Pegatron CEO Jason Cheng said: "We will investigate [the allegations] fully and take immediate actions to correct any violations to Chinese labor laws and our own code of conduct."

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First look at the BMW i3 electric car

First look at the BMW i3 electric carFor the amount of fanfare and effort BMW gave to its i3 electric car, I would have expected something at least nearly competitive with the Tesla Model S. But BMW's vision for a clean, futuristic urban vehicle doesn't reach far beyond what has already been put on the market by Nissan, Mitsubishi, Ford, and Honda, at least when it comes to raw performance numbers.

With an electric vehicle, performance primarily means range. BMW estimates the i3 will go 80 to 100 miles between charges, putting it in the same class as the majority of electric cars launched in the last few years. From BMW's perspective, that range fits perfectly within the parameters it set out. As an urban vehicle, the i3 is meant to handle daily driving around a city. Especially in Europe, that range is more than adequate for the majority of people to make a daily commute and run errands.

That sort of range is a tougher sell in the U.S., even if most people don't actually drive further on a daily basis.

When it comes to style, the i3 may not fit the brand perception BMW has built up in the U.S. The i3 comes out as a premium small electric car, a five door hatchback. Small and premium remain uncomfortable partners in the minds of U.S. car buyers, although vehicles such as theLexus CT200h have begun to bridge that rift.The i3's hatchback style offers excellent utility, with the ability to carry four passengers and cargo. Adding to the utility of the i3 is the fact that BMW designed it from the ground up to be an electric car. As such, there are no intrusions into the cabin for legacy components such as a transmission. The cabin floor is flatter than in most gasoline cars, while BMW takes a minimalist approach to the dashboard. The result is equivalent cabin space to BMW's 3-series, despite the shorter overall length of the i3.

Similar to the i3 concept vehicle BMW displayed at the 2011 Frankfurt auto show, the production version uses carriage style doors, meaning the rear doors are rear-hinged. However, the production version uses a longer front door, so the rears are half-doors, similar to the Mazda RX-8 or Honda Element.

As a premium vehicle, the i3 shows off nicer interior materials than you would expect from the typical economy hatchback in the market. And BMW gives the i3's cabin a futuristic twist. Rather than an instrument cluster embedded into the dashboard in front of the driver, BMW carves out some of the extra dashboard space and sets up an LCD for all instrumentation display, kind of like a flatscreen TV standing atop a modern entertainment center.Likewise, stereo, phone, and navigation controls appear on another LCD panel sitting on the center of the dashboard. However, BMW keeps its standard iDrive controller mounted on a console between the front seats as an interface for the cabin tech features. In fact, current BMW owners with iDrive will find it easy to adapt to this version in the i3.

Adding to the idea that the i3 is a car of the future is its carbon fiber reinforced plastic body. BMW took great pains and a lot of investment to develop this high tech material for mass production. This body construction promises a lighter car, without sacrificing strength and safety, and is unique among the competition.

Despite the lightweight materials, though, the i3 doesn't get any better range than its electric competition, at least on paper. It makes you wonder why BMW went to all the trouble.

The electric drivetrain itself hasn't evolved much, at least when it comes to power and efficiency, than that which BMW released in its ActiveE vehicle. The ActiveE, based on the 1-series, is an electric vehicle that BMW offers for limited leasing, and is being used to gather performance data for electric drive technology.

The i3 gets a 22 kilowatt-hour lithium-ion battery pack. Like the ActiveE, its electric motor drives the rear wheels and produces 170 horsepower and 184 pound-feet of torque. That gets the i3 from zero to 62 mph in 7.2 seconds, a reasonable acceleration rate for most traffic situations, but not ground-breaking. Top speed is electronically limited to 93 mph.

Similar to the Tesla Model S, BMW activates braking regeneration when the driver merely lifts from the accelerator, slowing the car without applying the brakes. It makes for a different driving strategy than with a gasoline-powered car, one where most of the driving is done with the accelerator pedal, and very little with the brake pedal.

BMW says the i3 can be fitted with a range extender internal combustion engine, which would bring total range up to 186 miles. BMW has not specified which markets might offer the range extended version.

Battery recharge will take about 5 hours from a 240 volt source, or 30 minutes for an 80% charge from a DC fast charging station.

Selling points
With pricing at $41,000, the BMW i3 comes in slightly higher than its electric competition. Federal and state incentives can bring the total price down by almost $10,000. Although its technical specifications don't make it look much more attractive than other options, upscale buyers may be more attracted to the brand.

Test drives will be another factor. If the i3 holds up BMW's Ultimate Driving Machine mantra, it could win converts through a premium ride experience.

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