shiny, gleaming gadgets in our sunday morning cover story. reporter: if you are one of the 37 million people who bought an i-phone over the holidays, have you ever wondered about working conditions in the chinese factories where they re made? when you were there, were there nets around the building to prevent further suicide? there was, yes. reporter: ahead on sunday morning, a controversial bite out of apple. osgood: with oscar season upon us, we re going hollywood. to start us off on our red carpet countdown lesley stahl talks with the nominated director whose latest film represents a total change of pace. reporter: martin scorsese s new film hugo got 11 oscar nominations this past week without a single punch thrown or gun fired. so hugo, no stabbing, no shooting, no gun fire. no one gets whacked. is martin scorsese going soft on us? you know, have i mellowed in a sense? reporter: later on sunday morning, the maestro of movie mayhem tells us why he made hugo,