TimCookCEO,Apple1InfiniteLoopCupertino,CA95014October23,2014DearMr.Cook,DesignedbyAppleinCaliforniahasanicerringtoitthanAssembledbyworkerspaidaboutadollarperhour,working11hourshifts,andsleepingeighttoaroomintheJabilCircuitcorporatedormitoriesinWuxi,China.But,nomatterhowyouspinitontheiPhonepackaging,youcontinuetoturnawayfromthehorridworkingconditionsandmiserlypayatyourChinesefactories.Justlastmonth,whileyoudisplayedthroughatwohoureventontheinsandoutsoftinyiPhone6andAppleWatchdesignbreakthroughshowcapableyourcompanyisofsolvingproblemsitcarestosolve,ChinaLaborWatchandGreenAmericarevealedintheirnewestreport,TwoYearsofBrokenPromiseshowyouhavefailedtoapplyevenamodicumoftheproblemsolvingfocusyoubringforproductdesigntotheserioushealthandsafety,environmental,andhumanrightsviolationsatChinesefactoriesassemblingtheiPhone.Thatsthepriceofaffordablephones,saysthecorporatistargument.Thiscouldbethecase,ifApplewasjustbarelyprofitable.But,asrevealedinarecentletterrespondingtoCarlIcahnscallformorestockbuybacks(yourespondtobillionairespleasmuchmoreoftenthanworkerspleas),Appleisplanningtohaverepurchased$130billionofitsownsharesbytheendofnextyear.Inshort,Appleissoprofitable,thatitdoesnotknowwhattodowith$130billionexceptbuybackstockfromitsshareholderstomaybeboostitsshareprice.Therearemanyalternatewayscouldhavespentitssurplusprofits.Forexample,whatifAppledecidedtoinvestthatexcess$130billionindignifiedworkingconditionsandlivingwages,insteadofunproductivelyusingtheirsurplustobuystocksbackfromthewealthy?Estimatesdiffer,butaccordingtoChineselaborwatchdogs,factoryworkersinApplessupplychainmakeaveragesalariesof,estimatingatthehighend,about$500permonthforabout80hoursofworkperweek.DoublingmonthlysalariesandcuttinghoursinhalfreformsthatwouldmakegreatstridestowardshavingChinesefactoriesmeetmodern,dignifiedstandardsofalivingwagefroma40hourworkweekwouldcost~$1500permonth(~$18,000peryear)foreachfactoryworker.Tohaveachievedthesereformsforthe300,000FoxconnworkerswhoassembledtheiPhone5swouldhavecost

Appleabout$5.4billionannually.Ifinsteadofbuyingbackstock,Applehaduseditsexcess$130billiontoendowafoundationtoachievethesereforms,itwouldhavepaidoutataconservativefivepercentinterest$6.5billionannually,enoughtodoublewagesandensurea40hourworkweekforhundredsofthousandsofiPhoneworkers,whileleavinga$1.1billionsurplusasanannualbudgetforensuringtopnotchhealth,safetyandenvironmentalstandardsatApplefactories.Thetechnologycompanythatleadsthewayinprofitsandproductdesigncould,withoutchanginganythingbuttheamountofexcess,unproductivemoneyitusestorepurchasestockfromwealthyshareholders,couldalsoleadthewayindignifiedworkingconditions,hoursandwages.Finally,someofApplesChinesefactoryworkersmaybecomeabletobuytheiPhonestheymanufacture.Thisgoestoshowthattoleratingpovertywagesisnotthepricewepayforaffordablephones.Rather,povertywagesandharmfulconditionsareaconsequenceoftoleratingoutrageousstockbuybacks.Youhadachoiceforthe$130billion:livingwagesforworkersorstockbuybacksformillionaires?Youchosebuybacks.Heresachallengeforthepresentandfutureuseofsurplusprofits:whynotletthecustomersdecide?JustastheyhaveconsumerinterestsinthinneriPhonesandsleekerMacBooks,theyalsohavehumaneinterestsinmoredignifiedworkingconditionsandmoreliveablewagesfortheworkersthatmaketheirproducts.Andyou,morethananyotherCEO,havethetechnologicalabilitytopollyourcustomersaboutwhoChineseworkersormillionaireshareholdersshouldreceiveApplesexcessmoney.AreyouscaredthattheymightThinkDifferentaboutthisissuethanCarlIcahn?Sincerely,

RalphNaderP.O.Box19312Washington,D.C.20036TimeForARaise.org