* Dismisses talk of sweatshop conditions at Foxconn
* Jobs says investigating "troubling" situation
* Blasts Adobe's Flash again
(Adds more comments from paragraph 17)
By Alexei Oreskovic
RANCHO PALOS VERDES, Calif., June 1 Apple Inc
(AAPL.O) Chief Executive Steve Jobs finds "troubling" a string
of worker deaths at Foxconn, the contract manufacturer that
assembles the company's iPhones and iPads, but said its factory
in China "is not a sweatshop."
Jobs was making his first public comments about apparent
employees' suicides at a complex operated by the unit of Hon
Hai Precision Industry (2317.TW), which also counts
Hewlett-Packard (HPQ.N) and Dell DELL.O among its clients.
At this year's All Things Digital conference, an annual
gathering of A-list technology and media executives in
California, Jobs sniped at Adobe Systems Inc's (ADBE.O)
"waning" Flash technology, vowed not to get into a search
battle with Google (GOOG.O), and waxed lyrical about the future
of tablet PCs.
Jobs also talked about how he conceived the iPad even
before the iPhone. Apple released the iPad in April and it has
quickly defined the tablet computer market, selling more than 2
million units in the first 60 days. [ID:nN31178032]
But a string of deaths at Foxconn's (2038.HK) base in
southern China, which critics blame on stressful working
conditions, threatens to cast a shadow over the device's
"It's a difficult situation," Jobs, dressed in his
customary black turtleneck and jeans, said on stage. "We're
trying to understand right now, before we go in and say we know
The iPad's momentum has helped drive share gains.
Apple last week overtook long-time nemesis Microsoft
(MSFT.O) to become the world's largest technology company by
market value -- an event unthinkable a decade ago -- and
Apple's shares have spent much of 2010 hitting new highs.
Shares of Cupertino, California-based Apple rose 1.5
percent on Tuesday to end at $260.8 on the Nasdaq.
"For those of us that have been in the industry a long
time, it's surreal. But it doesn't matter very much, it's not
what's important," Jobs said. "It's not what makes you come to
work every morning."
Jobs has appeared at the event in previous years, but not
since 2007. Much has changed for Apple -- and its helmsman --
in that period. A pancreatic cancer survivor, the company's
founder underwent a liver transplant a year ago.
The company's growing clout and business ambitions have
also increasingly put it at the center of several high-profile
disputes and in the regulatory spotlight.
The U.S. Justice Department is making preliminary inquiries
into whether Apple unfairly dominates the digital music market
through its iTunes store, sources say. [ID:nN26211752]
Hostility between Apple and Adobe has been brewing for
months. Apple has criticized Flash as a buggy battery hog,
while Adobe has accused Apple of exerting tyrannical control
over developers creating programs for the iPhone and iPad.
"We didn't start off to have a war with Flash or anything
else. We just made a technical decision," he said.
Adobe's Flash multimedia technology allows video and
interactive media on the Web
Jobs also addressed criticisms about Apple's decision to
only offer the iPhone in the United States on the AT&T (T.N)
wireless network, which is often faulted for sluggish
Without explicitly naming AT&T, Jobs acknowledged in
response to a question that the network was having "troubles,"
but said he believed quality would improve.
"I'm convinced that any other network had you put this many
iPhones on it would have had the same problems," he said.
Asked if there might be advantages to offering the iPhone
in the U.S. on more than a single wireless carrier, Jobs said
that there might be, but declined to provide further details.
Some tech blogs have speculated Verizon Wireless could soon
offer the iPhone, which continues to be the standard-bearer in
the smartphone market amid growing competition from handsets
running Google's (GOOG.O) Android platform.
Apple is widely expected to unveil its newest iPhone next
Monday, when Jobs delivers his keynote address at its
developers conference in San Francisco.
Consumers may already have gotten a sneak peak of the next
iPhone after a prototype, famously lost by an Apple employee at
a bar earlier this year, was purchased and displayed online by
a technology blog.
Jobs said there was debate about whether the phone was
simply picked up after being left at the bar, or actually
stolen out of the employee's bag.
"This is a story that's amazing," Jobs said. "It's got
theft. It's got buying stolen property. It's got extortion. I'm
sure there's sex in there somewhere. Somebody should make a
movie out of this."
(Additional reporting by Gabriel Madway; Editing by Edwin Chan
and Anshuman Daga)