The twenty-first century: an era of technological innovation. Google. Apple. Facebook. Took the world by storm. They ‘gifted’ us with unfathomable gadgets, that at the time, seemed to be straight out of a Sci-Fi movie. Their adverse effects on the other hand, were not. Being a multi-billion dollar company with immense market power, there is no surprise that Apple is responsible for large shifts and change in the economic world. While known for revolutionizing the technology sector with their groundbreaking innovations, Apple is lesser known for the harmful radiation and its terrifying effects.
Firstly, the Iphone radiation catastrophe will affect employment status of American citizens. According to Don Reisinger, who has a degree in Business and Finance, Apple has impacted the US economy by providing two million citizens with job opportunities as well as being responsible for US developers earning more than $16 billion from the App Store (Reisinger 1). From these statistics it is evident that Apple has impacted the American economy immensely by not only providing millions of jobs to citizens but also giving developers a platform to release their apps, supply the general public with entertainment, connections and education. Due to the unsafety of radiation, their jobs are in an unstable state and even the possibility of losing them could cause much upheaval and confusion. Furthermore, the American economy and citizens are so economically dependent on Apple through jobs, bonds, shares, and investments that Apple potentially going out of business would ruin the economy as well as the lives of many US citizens. Additionally, this scandal will cause an immense shift in the income of many citizens. According to Zak Doffman, the CEO of Digital Barriers, a class action lawsuit has been filed against Apple and Samsung due to recent news that revealed their smartphones emit radiation that exceeds safety standards (Doffman 1). If this lawsuit persists, the chances that these citizens win against a multi-billion dollar company is slim and would waste an abundance of time and money. Furthermore, in the likelihood that Apple loses this lawsuit, the company will lose a significant amount of money which will make their stock price descent at an exponential rate, which will affect the lives of people all over the world. In conclusion, this transgression hasd and will continue to affect US citizens financially.
Secondly, the iphone radiation scandal will impact Apple, but not to an abhorrent level. According to an article published by Macrotrends, a “research website for long term investors,” soley consisting of charts, data and statistics, the highest closing price for Apple in 2021 was $146.16 in comparison to $29.48 in 2017 (Apple 1).This extreme contrast shows Apples growth and wealth creation over the past decade which proves that as Apple becomes even more wealthy, big, and powerful, it will become harder to control the company. Moreover, if Apple’s stock has already multiplied by 5 times in the span of 4 years, then the future holds no bounds. Hence, Apple may suffer in the short-term due to this infringement, however, the probability of Apple not bouncing back is low, due to its revenue and investors. Furthermore, Apple’s revenue is increasing per year. According to Apple’ fourth quarter results, Apple’s revenue was $59.7 Billion, a 1% increase from the last quarter (Gala 1). As Apple continues to surpass past achievements, it brings the concern that Apple is becoming too powerful for even the US Government to control, even with safety matters such as Iphone radiation. Apple is becoming too economically powerful as well as a dominant supplier in the hand-set market, which will make it nearly impossible for the US government to intervene, even if the matter is as significant as public safety.
Lastly, the Iphone radiation violation will affect the American government as Apple has created an abundance of revenue for the US government. According to Yuqing Xing, a National Graduate Institute for Policy Studies, “In addition, conventional trade statistics greatly inflate bilateral trade deficits between a country used as export-platform by multinational firms and its destination countries. Based on the value-added approach, the iphone trade would generate US$48 million trade surplus for the US.” ( Xing 1).This could be one of the many reasons the government has not intervened in this matter. Hence, this radiation scandal could affect the government as deeply as they would be losing an abundance of money. Moreover, this scandal could affect the US government's relationships with other countries. According to Andrew Batson, China research director for Gavekal Dragonomics, “Based on U.S. sales of 11.3 million iPhones in 2009, the researchers estimate Chinese iPhone exports at $2.02 billion” (Baston 4). If the lawsuit persists and Apple is found guilty, then there would be significant damage to China’s economy which would in turn change the already strained relationship between US and China.
In conclusion, even though the radiation is very harmful to people world wide due Apple’s effect on the employment and income of American citizens, increasing market power, and relationship with the US government, it is unlikely that any changes will be made. Hence, Apple despite impacting millions of people worldwide, will not be persecuted for their negligence.
“Apple - 39 Year Stock Price History: AAPL.” Macrotrends, www.macrotrends.net/stocks/charts/AAPL/apple/stock-price-history.
Gala. “Apple Reports Third Quarter Results.” Apple Newsroom (Singapore), 27 Mar. 2021, www.apple.com/sg/newsroom/2020/07/apple-reports-third-quarter-results/#:~:text=Cupertino%2C%20California%20%E2%80%94%20July%2031%2C,of%20%242.58%2C%20up%2018%20percent.
Batson, Andrew. “Not Really 'Made in China'.” Tech Supply Chain Exposes Limits of Trade Metrics , The Wall Street Journal, 2010, www.dallariva.org/csumba/mba602/2011%20Spr/Apple-Global%20Sourcing.pdf.
Doffman, Zak. “Samsung Galaxy And Apple IPhone 'Radiation Scandal' Attracts Class Action Lawsuit.” Forbes, Forbes Magazine, 27 Aug. 2019, www.forbes.com/sites/zakdoffman/2019/08/24/class-action-lawsuit-hits-samsung-and-apple-over-new-rf-emission-scandal/#1e5b2187262b.
Reisinger, Don. “Here's How Apple Is Impacting the U.S. Economy.” Fortune, Fortune, 4 May 2017, www.fortune.com/2017/05/04/apple-us-economy-impact/.
Xing, Yuqing, and Neal Detert. “How IPhone Widens the US Trade Deficits with the PRC?, by Yuqing Xing; Neal Detert.” GRIPS Discussion Papers, National Graduate Institute for Policy Studies, 2 Feb. 2010, https://ideas.repec.org/p/ngi/dpaper/10-21.html