The newest hashtag that is taking the Twitisphere by storm is #BendGate which was created to mock the new iPhone models. Earlier this week Apple released two new phones, the iPhone 6 and the iPhone 6 Plus. This year’s models boasted a bigger 4.7-inch (iPhone 6) and 5.5-inch (iPhone 6 Plus) display and an astonishing thinness of 6.9mm and 7.1 mm respectively. However, it did not take long for consumers to discover a major flaw that could seriously effect sales as well as Apple’s reputation.
Thousands of users across the world have reported that their new iPhone’s have bent after being kept in pockets for extended periods of time. As a long time fan of Apple products, I am rather shocked that Apple did not foresee this defect. Apple has a Value Proposition which promises high build quality in all of their products. However, with the discovery of this, the quality of Apple’s production is put into question.
iPhone 6 Plus Bend Test – Video Courtesy of Unbox Therapy
With the release of the Apple watch in early 2015, it is likely that the buzz around the iPhone 6 will have an affect on sales of the new watch. How will Apple recover from this tragic discovery? Only time will tell.
Screenshot by Claire Reilly/CNET
This article about CVS Caremark discontinuing the sales of tobacco products in their stores directly correlates to the ‘Stakehold Theory.’ Edward Freeman states that each company has a moral obligation to make sure the interests of all are met. The company CVS Caremark announced that they plan to stop selling tobacco products by October. The company did this with the goal of becoming more like a health care provider and less like a large retail business. Although by removing the sales of these products they would lose an estimated $2 billion dollars, CVS have decided, “cigarettes and providing health care just don’t go together in the same setting.”
What CVS is doing is a stark example of the ‘Stakehold Theory’ that Freeman was talking about. By limiting the sale of these products, CVS hopes to please the general public by doing what they believe is morally correct. However by taking this action, they also affect their profit. As a result of this it could in turn affect the company’s stockholders, which is what Milton Friedman was referring to in his writing. By doing this it prevents the company from making more profit. By doing the right thing they lose money, whether or not this is a beneficial business decision will only be discovered as time progresses.
Welcome to UBC Blogs. This is your first post. Edit or delete it, then start blogging!