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, his very first family film. >> osgood: score skazy's film does pay tribute to remarkable machines that were operating in high gear many years ago. seth doane will be rewinding us back through time. >> reporter: a mechanical work of art. and centuries old mystery. do people even know when you're talking about when you say i've written a book about an atomic-on. >> i just keep talking. usually i do say that it's a wind-up mechanical figure. >> reporter: the wonder of the automaton later on sunday morning. >> osgood: brad pit is a movie star very much of our own time so much so that he's up for several oscars. lee cowan this morning will pay him a visit. >> reporter: his latest film money ball is up for six oscars. for brad pitt, it hits close to home. >> there are so many comparisons between money ball and the movie industry as a whole. the idea that if you avoid the star system, you can find as equally talented people for far less money and yet they hire me. >> reporter: brad pitt on money ball, fame and family later on sunday morning. >> osgood: also this morning anthony mason introduces us to the briish singer rumer. rita braver shows us the fashions of designer tory burch. steve hartman takes us to a sub terrainian open house and more. but first here are the headlines for this sunday morning the 29th of january, 2012. the florida republican primary is tuesday. and the latest poll now puts mitt romney well ahead of opponent newt gingrich. last night a former candidate herman cain through his support behind gingrich calling him a patriot, a man who isn't afraid of bold ideas. republican presidential hopeful rick santorum has canceled today's campaign events to be in philadelphia where his three-year-old daughter bella is now hospitalized. the child has a serious genetic condition. about 300 occupy oakland protestors were arrested last night after a day-long demonstration ended violently. police used tear gas to disperse a crowd trying to seize an empty convention center. u.n. inspectors this morning began touring iran's nuclear facilities. iran wants to prove its atomic goals are peaceful, a claim other nations including the united states have rejected. the pentagon even wants to start building conventional bomb because the current weapons can't penetrate the underground bankers that house many of iran's nuclear labs. friends, family and fans gathered in los angeles yesterday at a memorial service to singer etta james. stevie wonder performed and christina aguilera sang james's signature song "at last." now for today's forecast. most of us should expect another mild day. it's been a mostly mild winter. that's how january will end. the week ahead looks mild, even farm in some spots. with just a few showers here and there. >> ahead, we're going hollywood with hugo's oscar- nominated director martin scorsese. and money ball's oscar even in this high-tech age, our most popular electronic devices are largely made by hand. many hands as it turns out, hands that often are very overworked. as industry critics contend. our sunday morning cover story is reported now by martha teichner. >> reporter: just try to imagine 37 million i-phones. that's how many apple sold in just the last three months of 2011. on tuesday it announced revenue of more than 46 billion dollars for the quarter ending december 31. tim cook, the man who replaced the late steve jobs as ceo of apple, told wall street analysts the company couldn't keep up with global demand for the new i-phone 4-s. we didn't guess high enough, he said. the world is is in love with everything apple. but here's a question: have you ever wondered where all that stuff gets made? >> i have never thought, ever, in a dedicated way about how they were made. >> reporter: for performer mike daisy, that is the centerpiece of a monologue: the agony and the ectasy of steve jobs. >> it is a city of 14 million people and is larger and denser than new york city. it's the third largest city in all of china. it's a place where almost all of your toys come from. >> reporter: the show is an on- stage expose of working conditions in a factory in this city in china owned by a company called foxconn which manufactures electronics under contract for practically every major brand you can name including apple. >> foxconn is the biggest company you've never heard of. foxconn makes over 50% of all the electronics in the world. >> reporter: the foxconn plant in china employs more than 400,000 people. >> you've never been to the economic engines of china, these giant buildings, backed up with people. they're just staggering. it almost takes your breath away. >> reporter: daisy went to the city. foxconn wouldn't let him in so he stood outside the main gate with his translator talking to workers at shift change. >> my first two hours of my first day at that gate, i met workers who were 14 years old. i met workers who were 13 years old. i met workers who were 12. do you really think apple doesn't know? >> reporter: but what was news were the suicides. >> while i was there, i was there in may and june 2010. that's really the peak of when the suicides were happening. with the kind of terrible regulate where week after week workers would go up on the roofs of these buildings and throw themselves off the buildings. >> reporter: when you were there, were there nets around the buildings to prevent further suicides? >> there were, yes. >> reporter: you saw those? >> i did. >> reporter: what did that look like looking up and seeing them? >> it looked a lot like the nets you would put out to catch fish. >> despite the suicides at foxconn we begin to question the harsh management methods that drives workers to commit suicide. >> reporter: debbie chan is a project manager for students and scholars against corporate miss behavior, a labor watchdog group based in hong kong. sacom reported 18 foxconn workers committed suicide in 2010 and more tried. >> we began to interview the workers. many of them told us they have work pressure. if they make some mistakes they would be punished. >> reporter: foxconn responded that the suicide rates at its plants in china was actually lower than the national average. but the world had noticed. even comedian steven colbert commented. >> a tragic state of affairs. in response foxconn has taken action to ensure the mental health of their employees by making them sign a pledge vowing not to kill themselves. done and done. >> reporter: this is what steve jobs had to say. >> foxconn is not a sweat shop. when you go to this place and it's a factory but, my gosh, i mean, they've got restaurants and movie theaters and hospitals and swimming pools. i mean, it's... for a factory it's a pretty nice factory. >> reporter: so what then would drive workers to suicide? the pressure to produce especially to keep up with demand for a hot device like a new i-phone, according to mike daisy. >> the official workday in china is eight hours long. i never met anyone who heard of an eight-hour shift. everyone i talked to worked 12- hour shifts, much longer than that often. 14 hours a day, 15 hours a day. while i was in the country a worker in foxconn died after working a 34-hour shift. >> reporter: we have repeatedly asked apple for comment and been told no. we have repeatedly asked foxconn for access to its plant. no reply. instead, we were referred to a london-based consulting firm: impacts limited, paid by apple but only to address child labor issues among its suppliers. >> in my experience they have approached this particular topic of dealing with child labor is at the very top end of industry thoughts. >> reporter: this woman is is director of operations. asked if she had been sent to foxconn. >> we haven't been into foxconn. >> reporter: if you go to foxconn's website you discover it's part of a huge taiwan-based conglomerate called hand hi precision industry company with plants all over the world including the united states. foxconn employs approximately a million people throughout china, not just in schennjenn. it claims to follow strict industry standards of conduct and to respect its work force. >> a lot of companies have codes of conduct or standards that they apply to their factory partners in china. what we've learned is a lot of those standards are aspirational in nature. the market practices that a lot of these factories employ are well below those standards. >> reporter: ed spalding heads a consulting firm that helps companies in china improve working conditions. he won't say whether he works with apple and foxconn or talk about them specifically. it's important to note that they are by no means the only electronics makers implicated. >> it is common for factories to hide working hours, to somehow coach workers on what to say, when auditors come to the factory. >> reporter: on january 13 for the first time, apple released a list of its major suppliers and, with it, its annual supplier responsibility report showing that in 2011 it conducted 80% more audits than in 2010. the company's supplier code of conduct limits workers to a 60- hour six-day week. by apple's own data, only 38% of its suppliers complied. for sacon, apple's efforts are not good enough. >> every time when we sent reports, statements to them, we did not even get any reply. from this kind of experience, we think that apple is the most arrogant company. >> reporter: on thursday after a damning front page story in the "new york times," apple's ceo tim cook e-mailed his staff. any suggestion that we don't care is pateently false and offensive to us, he wrote. we are attacking problems aggressively. it would be easy to look for problems in fewer places and report prettier results, but those would not be the actions of a leader. and that's just the point for mike daisy. why are we talking about apple here as opposed to, say, microsoft or dell or sam sung or any of the other companies that contract with the foxconns of the world? >> apple has said for decades that it wants to be a leader. i think far from apple, you know, sort of complaining that people have expectations of them, i think they should be delighted that people actually expect them to lead and to rally the rest of the industry. >> reporter: so where does that leave us? in 2012, it's virtually impossible to stop buying and using electronics made in chinese factories for apple or for anybody else. >> our devices are so beautiful. especially the apple devices. they're so gorgeous looking. it seems as though they were made by a machine. but the reality is they're assembled by hand, by thousands of people who work with their fingers putting together the tiny components. so much of our world is actually hand made. even though it looks so modern. it's built from the bones of this labor. we need to actually understand that. ♪ mckinley is the man >> osgood: next the man behind the mountain. it just wouldn't go away. my doctor diagnosed it as fibromyalgia, thought to be the result of overactive nerves that cause chronic widespread pain. lyrica is believed to calm these nerves. i learned lyrica can provide significant relief from fibromyalgia pain. and for some people, it can work in as early as the first week of treatment. so now i can plan my days and accomplish more. lyrica is not for everyone. lyrica may cause serious allergic reactions or suicidal thoughts or actions. tell your doctor right away if you have these, new or worsening depression, or unusual changes in mood or behavior, or any swelling or affected breathing or skin, or changes in eyesight, including blurry vision or muscle pain with fever or tired feeling. common side effects are dizziness, sleepiness, weight gain, and swelling of hands, legs and feet. don't drink alcohol while taking lyrica. don't drive or use machinery until you know how lyrica affects you. with less pain, i'm feeling better now that i've found lyrica. ask your doctor if lyrica is right for your fibromyalgia pain. >> my fellow citizens, this country >> osgood: now a page from our sunday morning almanac. january 29, 1843, 169 years ago today. the day william mckinley, the future president, was born in ohio. as a young sergeant in the civil war, mckinley braved confederate fire to bring coffee and hot meals to union soldiers in the battle of antietam. after the war he rose through the republican ranks to become the governor of ohio. ♪ when he gets to washington and the democrats will run ♪ ♪ the republicans, mckinley paves the way ♪ > he won his party's presidential nomination in 1896 and triumphed over democrat william jennings brian at the polls ♪ hurrah, hurrah, mckinley is the man ♪ >> reporter: mckinley's inaugural festivities were the first to be filmed by thomas edison, no less. ♪ marching with mckinley to victory ♪ > as president, mckinley led the u.s. to victory in the spanish-american war. he won re-election in 1900 with new york's governor theodore roosevelt as his running mate. but during a visit to the pan american exposition in buffalo in 1901, mckinley was shot by an anarchist. and despite early hopes he would survive, the president died of his wounds eight days later. edison's cameras rolled again, this time to document mckinley's funeral procession. and his burial in canton, ohio. though overshadowed by his flamboyant vice president teddy roosevelt who succeeded him, william mckinley is hardly forgotten. the mountain named for him in alaska is the tallest in the land while his portrait graced the $500 bill. and in his most recent honor, the fictional ohio high school in the tv series "glee" bears his name. for president william mckinley for a whole new generation. coming up? >> does it feel soft on? >> yeah, it feels nice. >> osgood: fashion forward with designer tory burch. more important to do. en he g he wasn't focused on his future. but fortunately, somebody else was. at usaa we provide retirement planning for our military, veterans and their families. now more than ever, it's important to get financial advice from people who share your military values. for our free usaa retirement guide, call 877-242-usaa. with less chronic osteoarthritis pain. imagine living your life with less chronic low back pain. imagine you, with less pain. cymbalta can help. cymbalta is fda-approved to manage chronic musculoskeletal pain. one non-narcotic pill a day, every day, can help reduce this pain. tell your doctor right away if your mood worsens, you have unusual changes in mood or behavior or thoughts of suicide. antidepressants can increase these in children, teens, and young adults. cymbalta is not approved for children under 18. people taking maois or thioridazine or with uncontrolled glaucoma should not take cymbalta. taking it with nsaids, aspirin, or blood thinners may increase bleeding risk. severe liver problems, some fatal, were reported. signs include abdominal pain and yellowing skin or eyes. tell your doctor about all your medicines, including those for migraine and while on cymbalta, call right away if you have high fever, confusion and stiff muscles or serious allergic skin reactions like blisters, peeling rash, hives, or mouth sores to address possible life-threatening conditions. talk about your alcohol use, liver disease and before you reduce or stop cymbalta. dizziness or fainting may occur upon standing. ask your doctor about cymbalta. imagine you with less pain. cymbalta can help. go to cymbalta.com to learn about a free trial offer. you bet. wow. man: do your simple return with the turbo tax federal free edition, and now get our free one-on-one expert tax advice live by phone or chat. get the federal free edition at turbotax.com. >> osgood: this morning we continue our look at fashion forward clothing with a look at a designer whose styles seem to fit a generation of women to a t. rita braver takes us to the runway. >> i love the sweaters. what a fun way to tie in a whole outfit. >> reporter: tory burch is hard at work getting ready for her high-profile runway show during new york's upcoming fashion week. creating the kinds of clothes she's known for: sophisticated but not too serious. clothes that are a lot like tory burch. >> i think women want to have fun with how they dress. they want to create their own individual style. i want our clothes to be able to help them do that. >> reporter: her trademark bright color and easy-to-wear pieces have made her a fashionson phenomenon in eight short years. it's a couture look with a lower price tag, pieces that range in the hundreds rather than thousands of dollars. >> i thought we could really have an interesting concept if we took this idea of a luxury lifestyle brand but made it more accessible. >> reporter: her line with its distinctive double-t logo is now in hundreds of department stores, not to mention 65 tory burch boutiques across the world. >> addict. >> reporter: at 25 she's now got 1500 employees and does more than half a billion dollars a year in business. success even she has trouble believing sometimes. the fashion critics for a major newspaper called you, quote, the most influential fashion designer in america today. that's a pretty high praise there. >> that's when i look around my shoulder and ask, who is she talking about? no, i don't know. that's a huge compliment. wow. >> reporter: in fact, tory robin been-burch has led a golden life growing up on a horse farm in valley forge pennsylvania. >> i don't think i had a dress on until my senior prom. >> reporter: she got her sense of style from her glamorous globe-trotting parents. >> i know one of these has a special meaning for you. >> oh, yes. my mother in cuba in the leopard bikini. >> reporter: she is a constant presence in tory's world. >> i am so unbelievable proud of my daughter. >> reporter: tory even named her top-selling ballerina flat riva after her mom who was also an inspiration for the tuneics that are considered tory's most iconic pieces. >> tuneics have been around for centuries as you know. i'm very happy that all of a sudden they're mine. >> reporter: tory cut her fashion teeth working for designers like ralph laurent, vera wang. but she longed to create her own label. did it ever occur to you, oh, my god, this is really hard. i can't even begin to think about doing this. >> several times. i worked out of my apartment for the first two years. i had three boys and three stepdaughters that were all quite young running around so it was chaos. >> reporter: but theers why that golden part comes in again. she was lucky enough to have her fashion line financed with help from her businessman husband chris burch and other family members and friends. >> new york style setter tory burch is being hailed as the next big thing in fashion. >> reporter: then in 2005 oprah featured her work. >> again it's great for different body types. >> very nice. >> thank you. >> hard to define how much she helped us. the next day we had eight mill