It looks like Apple has discovered a groundbreaking technology that can actually help the company to bring down the exorbitantly high price of its products. And if not, then obviously increase its profit margin.
Apple Inc. (NASDAQ:AAPL) not only strives for the security of its users but also safeguarding our planet. The company is reportedly paving the way for a revolutionary technology that could transform global manufacturing of iPhone, iPad and Mac and Watches. Besides, it may have a direct impact on the exorbitant price of iPhone Apple has been facing criticism for long.
The Cupertino giant is backing a joint venture between aluminium giants Alcoa Corp. and Rio Tinto Group aimed at eliminating greenhouse gases in manufacturing aluminium. The Alcoa-Rio joint venture, named Elysis, is aimed at developing this technology on a larger scale and it is expected to commercialize in 2024.
Aluminium is one of the most important and widely used metals which can found in everything from aeroplanes to window frames and is a key material in Apple’s own devices. Currently, Aluminium is produced through a metal smelting process which involves burning carbon, and thereby producing carbon dioxide and other toxic emissions. We don’t think that any tech giant has taken a true initiative to mitigate the harmful impacts of global warming.
The new method is cost-effective plus eco-friendly. The developments would definitely prove to be more than beneficial for Apple as it would relieve its Aluminium investments by par considering Apple has partnered with the two Aluminium giants. Apple has been forging its chassis frame from Aluminium, including some internal components too.
It is totally unsure that Apple might slash down the price of iPhone or its other devices in future, but this could definitely feel invigorating to the company. It has already proved its strong standing in the form of an environmentally friendly firm and now it has joined a venture that is aimed at producing an important element of its products. Seems it has killed two birds with one stone.
This way of Aluminium manufacturing is about to change after more than 130 years with this major breakthrough. The newly evolved method will eliminate the direct greenhouse gases from the smelting process, releasing oxygen instead of carbon dioxide in the process. While Alcoa and Rio are developing the technology, Apple said it “helped facilitate” the collaboration and will also offer technical support to its partners. Apple, along with the two aluminium companies, and the Canadian and Quebec Governments will collectively invest a total of $144 million to fund further research and development into the technology. The project will be based in Montreal and have a research facility within Quebec.
Although Apple is known for investing billions of dollars in new technologies and manufacturing processes, the company rarely discusses them in public. However, the company did set aside a $5 billion pool which was meant for manufacturing investments in the U.S. Apple also invested $578 million to build sapphire crystal screens for iPhones but the project eventually failed. Apple is investing almost US$10 million in Elysis which is almost a raindrop compared to the above investments, but this could have a huge impact on company’s environmental efforts.
Apple appears to be playing its cards wisely. The recent aluminium tariff threats and Trump Administration environmental policy rollbacks might have led to the public disclosure of this announcement. Moreover, Apple has clearly become more eco-conscious recently as it has been making deliberate strides towards sustainability. Last month, the company announced that all of its facilities run entirely on clean energy. Also, the company revealed it re-cycler robot called Daisy that disassembles iPhones and recovers its valuable elements.
With the ever-increasing pollution hazards and drastic climate-changes, our environment is already approaching towards a dark abyss. Reducing the environmental threats has never been more important and that responsibility lies on both people and industries. Organisations should pay more heed to re-use and re-cycle rather than manufacture products altogether. Apple said it hopes to make products entirely from recycled materials. The company also cut down its total greenhouse gas emissions by 2 million metric tons between 2016 and 2017.