The ultimate gall of a heartless iPhone thief

An object of desire?

(Credit:
CNET)

One should never expect justice in life.

The best one can hope for is poetry.

And yet, just once or twice, both manage to collide with a deliciousness that moves the soul.

Here is the tale of a teenage girl who had her iPhone stolen.

As The New York Times composes it, the girl had her
iPhone 4S ripped from her by a teenage boy in Brooklyn's notoriously difficult Prospect Park.

iPhone theft is rather popular in New York. Indeed, Mayor Bloomberg recently suggested that it's responsible for an increase in crime in the city.

Anyway, the iPhone-less girl collared a couple of policemen, but the miscreant was not to be found.

However, the thief then decided that he'd try to get some money for the phone. So he met a man on a Flatbush street -- as you do.

The man asked to take a look at the phone. Perhaps he wanted to see whether Siri was still inside.

Then, he ran off with it.

Yes, this is slightly poetic. But we've only just begun.

You see, the boy thief was not very happy. After all, he'd had his recently acquired property stolen. So he went off in search of a policeman to report the crime.

I pause for your sound effects.

Thank you.

More Technically Incorrect

The police reacted with unusual efficiency. They corralled both the boy and the man who had taken Siri from him. But they still assumed the boy was the victim.

Are you ready for verse three?

The phone rang. It was the girl trying to do a deal to get her phone back. The police realized something might be amiss here. This seemed to be a miss who actually owned the phone.

So they waited for her to arrive in Flatbush. She recognized the boy's sneakers. They were pink.

I pause for your further sound effects.

The police decided it was time to play Solomon. They would slice the phone in two if one party didn't renounce their claim to the phone.

No, wait. They asked both the girl and the pink-sneakered boy to unlock the phone with the PIN code.

You're already there, aren't you? Both the actual thieves were brought to justice -- the actual kind. And the girl got her phone back.

There are several morals to this story.

One, don't steal iPhones if you're wearing pink sneakers.

Two, if someone does unto you as you have done unto someone else, take it onto the chin. It will help you understand the feelings of others.

Three, if you're the kind of New Yorker who thinks they can always get away with it, well, you can't. Not always.

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Egypt: Deadly clashes follow soccer riot verdict

Last Updated 4:48 p.m. ET

CAIRO Relatives and angry young men rampaged through the Egyptian city of Port Said on Saturday in assaults that killed at least 27 people following death sentences for local fans involved in the country's worst bout of soccer violence.

Unrest surrounding the second anniversary of Egypt's revolution also broke out in Cairo and other cities for a third day, with protesters clashing for hours with riot police who fired tear gas that encompassed swaths of the capital's downtown.

The divisive verdict and bloodshed highlight challenges being faced by President Mohammed Morsi, who took office seven months ago following an Egyptian revolution that ousted autocratic leader Hosni Mubarak. Critics say Morsi has failed to carry out promised reforms in the country's judiciary and police force, and claim little has improved in the two years after the uprising against Mubarak.

The Islamist leader, Egypt's first freely elected and civilian president, met for the first time with top generals as part of the newly formed National Defense Council to discuss the deployment of troops in two cities. The military was deployed to Port Said hours after the verdict was announced, and warned that a curfew could be declared in areas of unrest. The military was also deployed to the canal city of Suez, where protesters attacked the main security compound there after eight people were killed late Friday.

Smoke billows from a burning minibus belonging to a satellite channel after it was set on fire by Egyptian protesters outside the prison in Port said, Egypt, January 26, 2013. Twenty-one Egyptian football fans and club members were sentenced to death after a fatal post-match riot in Port Said last year, sparking new violence in the canal city that killed eight.

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AFP/Getty Images

Saturday's riot in Port Said stemmed from animosity between police and die-hard soccer fans know as Ultras, who also were part of the mass uprising against Mubarak that began on Jan. 25, 2011, and at forefront of protests against the military rulers who assumed temporary power after his ouster.

It also reflected tensions after the uprising that reached into all sectors of Egyptian life, even sports.

Survivors and witnesses said Mubarak loyalists had a hand in instigating last year's attack, which began Feb. 1 after Port Said's home team Al-Masry won a match, 3-1, against Cairo's Al-Ahly. Some say "hired thugs" wearing green T-shirts posing as Al-Masry fans led the attacks.

Others say, at the very least, police were responsible for gross negligence in the Feb. 1 soccer brawl that killed 74 Al-Ahly fans.

Families of the victims who died in last year's soccer violence react in court after the issuance of the death penalty for 21 accused in the Port Said incident, in Cairo, Egypt, Saturday, Jan. 26, 2013.

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AP/Ahmed Abd El-Latef, Shorouk Newspaper

Anger at police was evident in Port Said, home to most of the 73 men accused of involvement in the bloodshed, although the trial was held outside Cairo.

Judge Sobhi Abdel-Maguid did not give his reasoning when he handed down the sentences for 21 defendants. Executions in Egypt are usually carried out by hanging.

Verdicts for the remaining 52 defendants, including nine security officials, are scheduled to be delivered March 9. Some have been charged with murder and others with assisting the attackers. All the defendants — who were not present in the courtroom Saturday for security reasons — can appeal the verdict.

Supporters of those sentenced to death said they were being used as scapegoats. The rioters attacked the city's prison after the verdict was read live on state television to try and free the defendants. A police lieutenant and police officer were killed in the assault.

Residents also focused their anger against the government, attacking a power station, the governor's office and local courthouse. They staged a sit-in along the main road leading into the city and occupied a police station.

Security officials said a total of 27 people were killed and some 400 wounded, many by gunfire, throughout the city. The officials spoke on condition of anonymity because they weren't authorized to release the information.

Victims were killed when police fired tear gas, bird shot and other live ammunition at the mob. Two soccer players who died- one from Port Said's Al-Marikh club and the other a former player of its Al-Masry club — apparently were killed on their way to do training near the prison. One of the players was shot three times, a local health official said.

Some 220 kilometers (135 miles) away in Cairo, the divisive nature of the trial was on display.

Relatives of those killed at the soccer game erupted in joy in the courtroom after the verdict was announced.

Families yelled "Allahu Akbar!" Arabic for "God is great" and pumped their fists in the air. Others held up pictures of the deceased, most of whom were young men from Cairo's poor neighborhoods. One man fainted while others hugged. The judge smacked the bench several times to try to restore calm.

Supporters of Cairo's Al-Ahly celebrated the verdict in the team's club before heading toward Interior Ministry headquarters, which manages the police, for more protests.

Lawmakers had formed a fact-finding committee that found some evidence toward collusion from authorities, but the evidence was not conclusive.

Nine of those on trial are security officials, charged with assisting the attackers for failing to search for weapons as is customary and allowing known criminals to attend the game. One was a senior officer who locked the exit designated for Al-Ahly fans. Many victims suffocated or were trampled to death in the corridor trying to escape the violence. Others were thrown off bleachers, undressed, beaten with iron bars and had the words "Port Said" carved into their skin.

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Newtown Families March for Gun Control in DC

Jan 26, 2013 4:59pm

(YURI GRIPAS/AFP/Getty Images)

WASHINGTON, D.C. — Near-freezing temperatures didn’t stop several thousand gun-control activists from bearing their pickets today, carrying signs emblazoned with “Ban Assault Weapons Now” and the names of gun violence victims in a demonstration organized as a response to the mass shooting in Newtown, Conn. last month.

Walking in silence, the demonstrators trudged between Capitol Hill and the Washington Monument over a thin layer of melting snow. They were joined by politicians and some families of the Newtown victims.

March organizer Shannon Watts said the event was for the “families who lost the lights of their lives in Newtown, daughters and sons, wives and mothers, grandchildren, sisters and brothers gone in an unfathomable instant.”

“Let’s stand together and use our voices, use our votes to let legislators know that we won’t stand down until they enact common sense gun control laws that will keep our children out of the line of fire,” she told demonstrators.

Watts founded One Million Moms for Gun Control after the killing of 20 first graders and six adults at the Sandy Hook Elementary School in Newtown in December. In a profile with the New York Times, Watts said her 12-year-old son had suffered panic attacks after learning of last summer’s Aurora, Colo., theater shooting, leaving her at an impasse over how to talk to him about the latest tragedy.

Also among the speakers was a survivor of the 2007 Virginia Tech massacre, Collin Goddard.

“We need to challenge any politician who thinks it’s easier to ask an elementary school teacher to stand up to a gunman with an AR-15 than it is to ask them to stand up to a gun lobbyist with a checkbook,” he said.

The demonstration comes amid a push by progressive lawmakers to enact stricter gun control measures as a response to the trend of recent mass killings, although any hypothetical bill would likely face strong opposition in Congress.

Rep. Chris Van Hollen, D-Md., was among the demonstrators today.

“The idea that people need high-capacity magazines that can fire 30, 50, 100 rounds has no place in a civilized society,” he said. “Between the time we’re gathered here right now and this time of day tomorrow, across America, 282 Americans will have been shot.”

The congressman was quoting statistics compiled by the Brady Campaign to Stop Gun Violence.

INFOGRAPHIC: Guns by the Numbers

Last week President Obama proposed a sweeping overhaul of federal measures regulating gun ownership, including a universal background check system for sales, banning assault weapons,  and curbing the amount of ammunition available in weapon clips.

An ABC News/Washington Post poll released Thursday found 53 percent of Americans viewed Obama’s gun control plan favorably, 41 percent unfavorably. The division was visible today, as a handful of gun-rights advocates also turned out on the National Mall to protest what they believe would be infringements on their Second Amendment liberties.

ABC’s Joanne Fuchs contributed to this report.

SHOWS: Good Morning America World News

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Egypt deploys troops in Suez after 9 killed on anniversary of uprising

CAIRO/ISMAILIA, Egypt (Reuters) - Egypt's armed forces deployed troops in the city of Suez early on Saturday after nine people were shot dead during nationwide protests against President Mohamed Mursi, underlining the country's deep divisions as it marked the second anniversary of the uprising that toppled Hosni Mubarak.

Eight of the dead, including a policeman, were shot dead in Suez, and another was shot and killed in the city of Ismailia, medics said. Another 456 people were injured across Egypt, officials said, in unrest on Friday fuelled by anger at Mursi and his Islamist allies over what the protesters see as their betrayal of the revolution.

Mursi said the state would not hesitate in "pursuing the criminals and delivering them to justice". In a statement, he also called on Egyptians to respect the principles of the revolution by expressing their views peacefully.

The troops were deployed in Suez after the head of the state security police in the city asked for reinforcements. The army distributed pamphlets to residents assuring them the deployment was temporary and meant to secure the city.

"We have asked the armed forces to send reinforcements on the ground until we pass this difficult period," Adel Refaat, head of state security in Suez, told state television.

Friday's anniversary laid bare the divide between the Islamists and their secular rivals.

The schism is hindering the efforts of Mursi, elected in June, to revive an economy in crisis and reverse a plunge in Egypt's currency by enticing back investors and tourists.

Inspired by the popular uprising in Tunisia, Egypt's revolution spurred further revolts across the Arab world. But the sense of common purpose that united Egyptians two years ago has given way to internal strife that already triggered bloody street battles last month.

Thousands of opponents of Mursi massed on Friday in Cairo's Tahrir Square - the cradle of the revolt against Mubarak - to rekindle the demands of a revolution they say has been hijacked by the Muslim Brotherhood, the group from which Mursi emerged.

In Suez, the military deployed armored vehicles to guard state buildings, witnesses and security sources said, as symbols of government were targeted across the country.

Street battles erupted in cities including Cairo, Alexandria, Suez and Port Said. Arsonists attacked at least two state-owned buildings. An office used by the Muslim Brotherhood's political party was also torched.

"Our revolution is continuing. We reject the domination of any party over this state. We say no to the Brotherhood state," Hamdeen Sabahy, a popular leftist leader, told Reuters.

The Brotherhood decided against mobilizing for the anniversary, wary of the scope for more conflict after December's violence, stoked by Mursi's decision to fast-track an Islamist-tinged constitution rejected by his opponents.

The Brotherhood denies accusations that it is seeking to dominate Egypt, labeling them a smear campaign by its rivals.

'LEAVE! LEAVE! LEAVE!'

There were conflicting accounts of the lethal shooting in Suez. Some witnesses said security forces had opened fire in response to gunfire from masked men.

News of the deaths capped a day of violence that started in the early hours of Friday. Before dawn in Cairo, police battled protesters who threw petrol bombs and firecrackers as they approached a wall blocking access to government buildings near Tahrir Square.

Clouds of teargas filled the air. At one point, riot police used one of the incendiaries thrown at them to set ablaze at least two tents erected by youths, a Reuters witness said.

Skirmishes between stone-throwing youths and the police continued in streets around the square into the day. Ambulances ferried away a steady stream of casualties.

Protesters echoed the chants of 2011's historic 18-day uprising. "The people want to bring down the regime," they chanted. "Leave! Leave! Leave!" chanted others as they marched towards the square.

"We are not here to celebrate but to force those in power to submit to the will of the people. Egypt now must never be like Egypt during Mubarak's rule," said Mohamed Fahmy, an activist.

There were similar scenes in Suez and Alexandria, where protesters and riot police clashed near local government offices. Black smoke billowed from tires set ablaze by youths.

In Cairo, police fired teargas to disperse a few dozen protesters trying to remove barbed-wire barriers protecting the presidential palace, witnesses said. A few masked men got as far as the gates before they were beaten back.

Teargas was also fired at protesters who tried to remove metal barriers outside the state television building.

Outside Cairo, protesters broke into the offices of provincial governors in Ismailia and Kafr el-Sheikh in the Nile Delta. A local government building was torched in the Nile Delta city of al-Mahalla al-Kubra.

With an eye on parliamentary elections likely to begin in April, the Brotherhood marked the anniversary with a charity drive across the nation. It plans to deliver medical aid to one million people and distribute affordable basic foodstuffs.

Writing in Al-Ahram, Egypt's flagship state-run daily, Brotherhood leader Mohamed Badie said the country was in need of "practical, serious competition" to reform the corrupt state left by the Mubarak era.

"The differences of opinion and vision that Egypt is passing through is a characteristic at the core of transitions from dictatorship to democracy, and clearly expresses the variety of Egyptian culture," he wrote.

Mursi's opponents say he and his group are seeking to dominate the post-Mubarak order. They accuse him of showing some of the autocratic impulses of the deposed leader by, for example, driving through the new constitution last month.

"I am taking part in today's marches to reject the warped constitution, the 'Brotherhoodisation' of the state, the attack on the rule of law, and the disregard of the president and his government for the demands for social justice," Amr Hamzawy, a prominent liberal politician, wrote on his Twitter feed.

The Brotherhood says its rivals are failing to respect the rules of the new democracy that put the Islamists in the driving seat via free elections.

(Additional reporting by Tom Perry, Ahmed el-Shemi, Ashraf Fahim, Shaimaa Fayed and Yasmine Saleh in Cairo and Abdel Rahman Youssef in Alexandria; Writing by Tom Perry; Editing by Robert Woodward and Peter Cooney)

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Obama, Hollande hold phone talks on Mali offensive

WASHINGTON: US President Barack Obama voiced support Friday for France's military intervention in Mali and vowed to work with French counterpart Francois Hollande to tackle extremism across North Africa.

The two presidents discussed other "shared security concerns," including Algeria, Libya and Syria, during telephone talks, the White House said in a statement.

"The president expressed his support for France's leadership of the international community's efforts to deny terrorists a safe haven in Mali," it added.

In condemning a deadly hostage-taking operation by militants in Algeria last week, the two leaders "affirmed their mutual commitment to countering terrorism more broadly in North Africa," according to the statement.

Preliminary estimates from the Algerian authorities say 37 foreign hostages and 29 kidnappers died in an attack at the In Amenas gas field and in the military operation that followed.

Hollande also thanked Obama for his "significant support" of the effort in Mali, the White House said.

The US Air Force has deployed C-17 cargo planes to carry French troops and equipment to northern Mali, where they are trying to help flush out radical extremist fighters.

The United States also was providing intelligence to France, drawing on its network of satellites and surveillance drones.

Paris has asked Washington to help with refueling its warplanes taking part in the fight against militant fighters in Mali, but Obama's administration has yet to approve the request.

Obama and Hollande also "emphasized the need to rapidly establish" both an African-led military force in Mali and a "political roadmap that will lead to elections and restoration of democratic governance," the White House said.

The pair "condemned last week's terrorist act in Algeria," and "affirmed their mutual commitment to countering terrorism more broadly in North Africa."

Turning to Libya, in the wake of an uprising that toppled dictator Muammar Gaddafi in 2011, the two presidents "noted the importance of sustained assistance to Libya as it works to build effective security sector institutions," the statement added.

Hollande and Obama also spoke about Syria, "expressing their strong concern about the humanitarian crisis affecting not just Syria but also neighboring countries and reiterating their commitment to assisting the Syrian people achieve political transition to a post-Assad Syria," the statement said.

Syria's civil war has already claimed the lives of more than 60,000 people since March 2011, according to the United Nations, which has predicted that the number of Syrian refugees in neighboring countries will double to 1.1 million by June if the conflict does not end.

- AFP/fa

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How I misjudged Vine, and came to see it as a new artform

I'll admit it, I misjudged Vine. Here's why.

One of the first things I read about Vine, Twitter's new stand-alone video app for iPhone and
iPod Touch, was Jack Dorsey's gushing tweet about the service.

"Vine is the most exciting thing I've seen in a while," Dorsey, Twitter's co-founder (and also founder of Square), tweeted yesterday morning. "Not just because of the team, because it brings an entirely new art form to the world."

I have a huge amount of respect for Dorsey -- after all, this is a man who helped change the way the world communicates, and then repeated that success by helping change the way the world pays for things. But I tend to tune out when an executive is so effusive in touting one of his or her company's own products. And that's what happened here: I automatically discounted Dorsey's praise and ignored the possibility that Vine could, in fact, offer the world a new art form.

It's also true that I didn't spend enough time with the app at first, and as a result I misunderstood what it was. I saw it as a simple six-second video that looped. Clearly, the digerati had anointed it the Thing of The Day, but I chalked that up to its being launched by Twitter. I thought it was derivative, and even a little annoying -- that looping thing could drive you crazy. I tweeted that if Vine had been entirely a stand-alone product, and not launched by Twitter, that few would care. Once the buzz died down, people would quickly tire of yet another video app, and within a week or two, Vine would fade away.

Fast forward a few hours, though, to an instant message conversation I had with my CNET colleague Jennifer Van Grove. She confided that she had been thinking more about Vine, and that she'd come to "understand why this is interesting [and] why it could matter."

In a bit of stream of consciousness, Van Grove rattled off a few reasons why she thought Vine might actually have some value: It makes the mundane seem interesting without requiring much work by the user; With no play button, the app presented no barrier to entry; It felt like something Tumblr should have built; and it offered a lot of appeal to teens, along the lines of Snapchat. "As much as I wanted to stay this is stupid," Van Grove said, "when I used it, I had fun. I was surprised, and I will use it."

When I got home, I pulled out the app to show it to my wife, who hadn't seen it. As I did, I stumbled across some of the videos that had been selected as Editor's Picks. The first to catch my eye was one in which a banana at first appeared whole, and then frame by frame, disappeared a piece at a time, as if by magic. On a loop, it was particularly clever because as soon as the banana was gone, it would reappear, again and again.

Sadly, one current limitation of Vine is that there's no way to get an embeddable code for an individual post, unless you can find a tweet in which it was included. As a result, there's no easy way for me to show the banana video. Here, though is a Vine I shot myself, showcasing the ability to shoot several individual moments and splice them all together:

It's now clear to me that I radically misunderstood how Vine works. Sure, you can use it to shoot an uninterrupted video of up to six seconds, but how mundane is that? In fact, the tool's real value is that it lets you very easily craft a video comprising six seconds of individual moments cobbled together into a final product. That opens up a whole world of short story-telling possibilities. For example, a major book publisher posted a Vine today showcasing their upcoming releases. They could have just panned from one book to the next in an uninterrupted shot, but this was much more dramatic.

Sure enough, in the early going, almost all of the most interesting Vines make full use of the tool's stop-motion/extended GIF capability, including the very first one ever posted, by Twitter CEO Dick Costolo, of someone cooking a special dish. A personal favorite of mine -- alas, another that I can't embed here, showed a line appearing on a piece of paper, and then morphing onto someone's hand, curving around, hitting their palm and turning into the word "fin," as in what you might see at the end of an art film.

By now, I was thinking again about Dorsey's tweet from the morning. Maybe he wasn't so far off. Vine has limitations, and it's too early to tell if it will have legs, but I'm coming to the conclusion that this is in fact an all-new art form. Put in the hands of clever, artistic types, there's very likely to be a never-ending supply of fun, interesting videos coming along -- accompanied, of course, by an infinite number of pointless ones.

It's not that Vine doesn't have some real problems. I'm still not convinced about the looping thing, and I wonder if over time, they'll provide a way to turn that off when viewing a Vine. At the same time, there doesn't appear to be a way to share others' videos -- you can't tweet someone else's Vine, in other words. And it's going to be hard for the service to grow all that fast without enabling that kind of sharing. But I imagine these are features that will emerge over time.

Either way, though, I expect a whole community of people to emerge who will coalesce around interesting, innovative Vines. Recall that that's exactly how Instagram took off -- by giving people attracted to artistic photography an easy to use tool and, even more importantly, an easy way to share their own and see others' creations. Boom! Ninety million active users.

Will Vine hit 90 million users? We're a long, long, long way from there. But with Twitter behind it and an enthusiastic community, I'm not willing to bet against it. At least not anymore.

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FDA panel votes for more restrictions on Vicodin

WASHINGTONFederal health advisors want new restrictions on hydrocodone, the highly addictive ingredient found in Vicodin and other widely abused prescription painkillers.

The Food and Drug Administration's panel of drug safety specialists voted to subject hydrocodone drugs to the same restrictions as narcotics like oxycodone and morphine.

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Headlines: Vicodin may face tighter controls

The panel voted 19-10 in favor of the move, which is supported by the Drug Enforcement Agency. The FDA will weigh the vote in its decision-making process.

Hydrocodone is sold in combination pills like Vicodin, which mixes the drug with non-addictive painkillers like acetaminophen. The drug belongs to a family of drugs known as opioids, which include morphine, heroin, oxycodone, codeine and methadone.

Doctors prescribe the medicines to treat pain from injuries, surgery, arthritis and other ailments such as coughs.

Hydrocodone consistently ranks as the first or second most-abused medicine in the U.S. each year, according to the Drug Enforcement Agency.

Panelists who voted for new restrictions said it would send a signal to doctors about the potential dangers of hydrocodone drugs.

"I don't think reclassification is a panacea for the opioid abuse problem in this country, but I think it's an important step to get doctors to rethink their prescribing practices," said Mary Ellen Olbrisch, a professor at Virginia Commonwealth University.

The DEA has asked the FDA to reclassify hydrocodone as a schedule II drug, limiting which kinds of medical professionals can write a prescription and how many times it can be refilled. The Controlled Substances Act, passed in 1970, put hydrocodone combination drugs in the schedule III class, which is subject to fewer controls.

An April, 2012 Drug Enforcement Administration report showed that 42 tons of pure hydrocodone were prescribed across U.S. pharmacies in 2010, enough to give 24 5-milligram Vicodins to every person in the United States.

In 2011, U.S. doctors wrote more than 131 million prescriptions for hydrocodone, making it the most prescribed drug in the country.

Currently a prescription for hydrocodone-containing Vicodin can be refilled five times before the patient has to see a physician again. If the drug is reclassified patients could only receive a single 90-day prescription, similar to oxycodone. The drug could also not be prescribed by nurses and physician assistants.

Panelists who voted against the classification change said it would have unintended consequences, driving addicted patients to obtain the drugs illegally.

"If prescribing decreases, illicit opioid use will increase, with dire consequences," said Dr. John Mendelson, of St. Luke's Hospital in San Francisco. "I think this is a mistake and we will be back here with other problems."

Several physician and pharmacist groups also argued that new restrictions would burden medical professionals and disrupt patient care.

"Rescheduling the products to Schedule II would create significant hardships for all - leading to delayed access for vulnerable patients with legitimate chronic pain," said the National Community Pharmacists Association, in a statement.

The FDA is not required to follow the advice of its expert panelists, though their input is often critical in its decisions.

FDA officials closed the meeting by acknowledging the difficulty of combating hydrocodone abuse, while keeping the drugs available for patients who legitimately need them.

"There is an unquestioned epidemic of opioid abuse, overdose and death in this country, an epidemic we need to address as a society," said Douglas Throckmorton, FDA's deputy director for regulatory programs.

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Apple Drops Manufacturer Using Underage Workers

Apple has stopped doing business with a Chinese manufacturer after a report said it had employed 74 underage workers. According to Apple's Supplier Responsibility Report, which was released by the company Thursday, Guangdong Real Faith Pingzhou Electronics was employing workers under the age of 16.

"Our auditors were dismayed to discover 74 cases of workers under age 16 — a core violation of our Code of Conduct. As a result, we terminated our business relationship with PZ," the company says in the report.

Apple has now lost its spot as the most valuable publicly traded company, one year after it first firmly overtook ExxonMobil. Even though it announced a record number of iPhone and iPad sales in its last quarter earnings, its stock price has fallen over 12 percent.

Apple says it is working hard to improve labor conditions at the factories of its Chinese contractors. It said it also discovered that one of the region's labor agencies had conspired with the manufacturer, providing children to them and helping forge age-verification documents. Apple said in its report that it alerted the provincial government, which fined the agency and suspended its business license.

Apple To Start Making Some Mac Computers in America in 2013

"The children were returned to their families, and PZ was required to pay expenses to facilitate their successful return," Apple says in the report.

In an interview with Bloomberg, Apple's Senior Vice President of Operations, Jeff Williams, said child labor was being used more than companies care to admit. "Most companies, they either don't report on it at all, or they say they look for it and found none, or they obscure the data in some way," Williams told Bloomberg. "If they're not finding it, they're not looking hard enough."

ABC News' Bill Weir visited the factory of Apple's Foxconn supplier last year and did not see any underage workers. "But while we looked hard for the kind of underage and maimed workers we've read so much about, we mostly found people who face their days through soul-crushing boredom and deep fatigue," Weir wrote about his visit.

PHOTOS: Inside Apple's Factories in China

In the 37-page Supplier Responsibility Progress Report, which can be viewed here, Apple said there had been a 72 percent increase in facility audits. According to the report, Apple achieved an average of 92 percent compliance with the goal, for now, of a maximum 60-hour work week.

Apple vowed last year to improve working conditions at its manufacturing facilities in China, vowing to work specifically on reducing working hours for Chinese workers. In March 2012, the Fair Labor Association released a report on the poor conditions at Apple's Foxconn supplier. The organization gave a long list of recommendations to Apple and Foxconn, and both Apple and Foxconn agreed to follow them.

In August, the FLA said that that Foxconn had completed 280 action items on time or ahead of schedule. By July 1, 2013, Foxconn has promised to reduce workers' hours to 49 hours per week and stabilize pay -- though the limit is rarely enforced because workers often want to work overtime and make ends meet.

Apple announced in December that it would begin to make some of its Mac computers in America in 2013.

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North Korea to target U.S. with nuclear, rocket tests

SEOUL (Reuters) - North Korea said on Thursday it would carry out further rocket launches and a nuclear test that would target the United States, dramatically stepping up its threats against a country it called its "sworn enemy".

The announcement by the country's top military body came a day after the U.N. Security Council agreed to a U.S.-backed resolution to censure and sanction North Korea for a rocket launch in December that breached U.N. rules.

North Korea is not believed to have the technology to deliver a nuclear warhead capable of hitting the continental United States, although its December launch showed it had the capacity to deliver a rocket that could travel 10,000 km (6,200 miles), potentially putting San Francisco in range, according to an intelligence assessment by South Korea.

"We are not disguising the fact that the various satellites and long-range rockets that we will fire and the high-level nuclear test we will carry out are targeted at the United States," North Korea's National Defence Commission said, according to state news agency KCNA.

North Korea is believed by South Korea and other observers to be "technically ready" for a third nuclear test, and the decision to go ahead rests with leader Kim Jong-un, who pressed ahead with the December rocket launch in defiance of the U.N. sanctions.

China, the one major diplomatic ally of the isolated and impoverished North, agreed to the U.S.-backed resolution and it also supported resolutions in 2006 and 2009 after Pyongyang's two earlier nuclear tests.

Thursday's statement by North Korea represents a huge challenge to Beijing as it undergoes a leadership transition, with Xi Jinping due to take office in March.

China's Foreign Ministry called for calm and restraint and a return to six-party talks, but effectively singled out North Korea, urging the "relevant party" not to take any steps that would raise tensions.

"We hope the relevant party can remain calm and act and speak in a cautious and prudent way and not take any steps which may further worsen the situation," ministry spokesman Hong Lei told reporters at a regular press briefing.

North Korea has rejected proposals to restart the talks aimed at reining in its nuclear capacity. The United States, China, Russia, Japan and the two Koreas are the six parties involved.

"After all these years and numerous rounds of six-party talks we can see that China's influence over North Korea is actually very limited. All China can do is try to persuade them not to carry out their threats," said Cai Jian, an expert on Korea at Fudan University in Shanghai.

Analysts said the North could test as early as February as South Korea prepares to install a new, untested president or that it could choose to stage a nuclear explosion to coincide with former ruler Kim Jong-il's Feb 16 birthday.

"North Korea will have felt betrayed by China for agreeing to the latest U.N. resolution and they might be targeting (China) as well (with this statement)," said Lee Seung-yeol, senior research fellow at Ewha Institute of Unification Studies in Seoul.

U.S. URGES NO TEST

Washington urged North Korea not to proceed with a third test just as the North's statement was published on Thursday.

"Whether North Korea tests or not is up to North Korea," Glyn Davies, the top U.S. envoy for North Korean diplomacy, said in the South Korean capital of Seoul.

"We hope they don't do it. We call on them not to do it," Davies said after a meeting with South Korean officials. "This is not a moment to increase tensions on the Korean peninsula."

The North was banned from developing missile and nuclear technology under sanctions dating from its 2006 and 2009 nuclear tests.

A South Korean military official said the concern now is that Pyongyang could undertake a third nuclear test using highly enriched uranium for the first time, opening a second path to a bomb.

North Korea's 2006 nuclear test using plutonium produced a puny yield equivalent to one kiloton of TNT - compared with 13-18 kilotons for the Hiroshima bomb - and U.S. intelligence estimates put the 2009 test's yield at roughly two kilotons

North Korea is estimated to have enough fissile material for about a dozen plutonium warheads, although estimates vary, and intelligence reports suggest that it has been enriching uranium to supplement that stock and give it a second path to the bomb.

According to estimates from the Institute for Science and International Security from late 2012, North Korea could have enough weapons grade uranium for 21-32 nuclear weapons by 2016 if it used one centrifuge at its Yongbyon nuclear plant to enrich uranium to weapons grade.

North Korea has not yet mastered the technology needed to make a nuclear warhead small enough for an intercontinental missile, most observers say, and needs to develop the capacity to shield any warhead from re-entry into the earth's atmosphere.

North Korea gave no time-frame for the coming test and often employs harsh rhetoric in response to U.N. and U.S. actions that it sees as hostile.

The bellicose statement on Thursday appeared to dent any remaining hopes that Kim Jong-un, believed to be 30 years old, would pursue a different path from his father, Kim Jong-il, who oversaw the country's military and nuclear programs.

The older Kim died in December 2011.

"The UNSC (Security Council) resolution masterminded by the U.S. has brought its hostile policy towards the Democratic Peoples Republic of Korea (North Korea) to its most dangerous stage," the commission was quoted as saying.

(Additional reporting by Christine Kim in SEOUL, Ben Blanchard and Sui-Lee Wee in Beijing; Writing by David Chance; Editing by Raju Gopalakrishnan and Ron Popeski)

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N.Korea threatens South over UN sanctions

SEOUL: North Korea on Friday threatened "physical counter-measures" against rival South Korea over a tightening of UN sanctions against Pyongyang following its recent rocket launch.

"If the South Korean puppet regime of traitors directly participates in the so-called UN 'sanctions', strong physical countermeasures would be taken," the North's Committee for Peaceful Reunification of Fatherland said.

The warning, carried by the official Korean Central News Agency, came a day after North Korea threatened to conduct its third nuclear test and boost its capacity for a military strike on the United States.

"Sanctions amount to a declaration of war against us," said the committee, which is the prime state body responsible for inter-Korean dialogue and exchange.

While Thursday's threat had firmly targeted the United States, the latest warning focused Pyongyang's anger on the capitalist South.

"As long as the South Korean puppet traitors' regime continues with it's anti-DPRK (North Korea) hostile policy, we will never sit down with them," it said.

- AFP/fa

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