Sadly, this is not limited to iPhones, smartphones, or even electronics. It is the general working condition in China across all industries. In broader anthropological terms, its a right of passage from pre to post industrialization.
China is still a predominantly agricultural society, but they are growing and evolving as a society. The US went through this phase, as did every other post-industrial nation. Autoworkers in Detroit think they're exploited making only $80K a year because they envy their educated boss who makes much more. Thats BS. These are the true exploited workers of the world, exploited to our benefit. And where does this occur? In a communist workers' paradise!
This is why my Irish, coal mining descendants formed labor unions, for safe working conditions, not so that they would pay less in retirement contributions than private workers.
We, as in the post-industrial world, could help, but we don't. If we do, the price of our consumer goods go up. No, nothing is going to get better until those people can form their own union that doesn't have a yellow star in its logo, but thats not happening any time soon.
It will happen though. Freedom is the longing of the human heart and liberty is its birthright. Someday, when China reaches its full economic might, that oppressive government is going to be overthrown and then real change will begin.
But to point fingers at Jobs before he's even buried cheapens the problem. Your PC contributes to it, your shoes, your clothes, the internet you use, the television you watch, the ATM you withdraw money from. Don't use your own technology bigotry to hide from the shame we all share. No one's hands are clean.