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Apple sees increased demand for iPhone with climate change

Apple sees increased demand for iPhone and gain in brand reputation from climate change.

  • Published: January 23, 2019 3:03 PM IST
Apple Store Hong Kong Stock 1

Image Credit: Karthekayan Iyer

From increase in sea level to frequent droughts, the signs and dangers of climate change are increasingly familiar to human beings. A landmark report by United Nations last year warned that we have only 12 years to limit climate change. As with any impending catastrophic event, it also leads to business opportunities for a number of companies. Apple, for instance, says that changing climate could mean increased customer loyalty and demand for iPhones. That is one of the conclusions made by the company in a report detailing its business. The report was published on Tuesday by CDP, a nonprofit that collects information from companies about their environment impact.

Apple is among a number of big companies, including Walt Disney Co and Bank of America, that provide reports detailing climate-related risks and opportunities to the organization and reveal how their business could be impacted. In the report, Apple says that it would “more likely than not” benefit if various governments increased their rules around how power efficient electronics need to be. “Apple would be well positioned to benefit from such regulations, due to our ongoing focus on the energy efficiency of our products,” the company said in the report.

Business Insider reports that Apple estimates to make $2.3 billion in total sales if such a change comes into effect. The Cupertino-based company has also identifies increased severe weather events as an increase in demand for iPhones. “Mobile devices can serve as the backbone communication network in emergency and quasi-emergency situations,” Apple wrote.

“They can serve as a flashlight or a siren; they can provide first aid instructions; they can act as a radio; and they can be charged for many days via car batteries or even hand cranks. Over time, as people begin to experience severe weather events with greater frequency, we expect an increasing need for confidence and preparedness in the arena of personal safety and the well-being of loved ones,” the company said.

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Apple also says features like “SOS,” which allows iPhone and Apple Watch to contact emergency services easily will lead to “increased customer loyalty and demand.” Apple notes that the positive impact from climate change could be as large as $920 million and the number has been calculated by adding an additional hypothetical of 0.5 percent to its current brand value as estimated by Interbrand.

Apple also sees itself being successful in making products which are attractive to people who are concerned about climate change or increase in electricity prices. Like other companies, it also sees risks to business that could be caused by climate change. Apple says that severe weather events could cause a strain in infrastructure systems needed to manufacture and sells its products. It says that being environmentally conscious adds to its reputation.

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  • Published Date: January 23, 2019 3:03 PM IST