Power Grid Issues Plaguing China May Result in Supply Chain Problems
With global warming looking overheard and an increase in the number of natural disasters coupled with rising sea levels around the world, there aren’t many positive things you can say about global climate change. But tech giant, Apple has found a silver lining – iPhone sales. In a recently published report, the tech giant suggested that safety features like “SOS,” which connects iPhone and Apple Watch users with emergency services, could spur “increased customer loyalty and demand” in the face of catastrophic weather events.
“Over the past few years, for example, we enabled iPhones to receive Wireless Emergency Alerts, including alerts from the National Weather Service and local law enforcement. These alerts also appear on the Apple Watch. We also offer a free ‘find friends’ app. And a fast-access flashlight,” the company wrote.
The company also said it’s well-positioned to benefit from a new power-efficiency rules, which could be introduced as governments grapple with the carbon footprint. Apple believes this could be the boost needed to drive iPhone sales – which they project to be up by $2.3 billion.
Despite their hopeful attitude, Apple does admit that global warming isn’t something we want, but it will be something we need to deal with. The company identifies several climate-related risks to its business, including potential risks to the infrastructure it needs to manufacture and sell its products – which could potentially cost them $300 million.
It’s a pretty fair concern. Catastrophic weather events can wreak havoc with supply chains. For example, back in 2011, massive floods in Thailand caused a global shortage of hard drive disks. With Thailand being the second biggest manufacturer of HDDs, the floods severely damaged factories belonging to Western Digital. This resulted in prices almost doubling overnight. So it’s understandable why Apple would be worried about facing a similar event.
Apple also points out that being environmentally aware is crucial for its reputation. They worry that if perceived otherwise, it could “reduce people’s inclination ot purchase from, invest in, or work for Apple.” Of course, some critics point out that if Apple were really concerned about its environmental credentials, they could simply start by making their products (laptops specifically) easier for customers and third party technicians to repair or recycle, which would drastically lower the company’s electronic waste footprint.
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