Apple's iPhone 15 Launch: Insights into the Global Economy

As the highly anticipated iPhone 15 range hits the shelves, investors eagerly anticipate its impact on Apple's stock. However, beyond the excitement surrounding the launch, there are significant implications for the global economy that should not be overlooked. UBS analyst Michelle Laliberte highlights three key takeaways from this event.

Consumers Embrace Experiences

Contrary to expectations, the modifications introduced by Apple align with a growing trend amongst consumers: a preference for investing in experiences rather than material possessions. Laliberte notes that the company is banking on consumers' desire to explore virtual reality, aiming to capitalize on this demand through the release of their $3,499 Vision Pro headset.

To enhance the virtual reality experience, the iPhone 15 Pro now boasts "spatial video" capabilities, enabling users to enjoy immersive 3D videos captured on their phones through the Video Pro headset. This revolutionary feature adds a whole new dimension to reliving holiday memories.

In an interview with gaming-media outlet IGN, Apple executives also emphasize that the iPhone 15 Pro doubles as the ultimate gaming console. With its A17 Pro chip enabling more detailed graphics, users can expect a superior gaming experience unparalleled by any other device on the market.

The Rise of the Circular Economy

Additionally, Apple's latest launch demonstrates a significant step towards embracing the circular economy.

Apple's Sustainable Innovations with the iPhone 15

Apple has made a significant stride towards sustainability with the introduction of the iPhone 15 by replacing its Lightning connector with a USB-C connector port. This change was mandated by the European Union to combat electronic waste. However, it is clear that Apple is embracing a more circular model that aims to eliminate waste altogether.

The iPhone 15 Pro and Pro Max boast batteries made with 100% recycled cobalt, which marks a groundbreaking achievement for the company. Apple has committed to using recycled cobalt in all its designed batteries by 2025. This move reflects a larger trend among companies to shift away from relying on scarce materials and find more sustainable alternatives.

The Enduring Legacy of Globalization

Contrary to the prevailing notion that globalization is on the decline, the iPhone 15 proves that we are not quite there yet. Many companies have sought to reconfigure their supply chains to reduce geographical distances and associated risks. However, Apple remains committed to global operations.

While Apple plans to procure its chips from a US-based factory in the near future, the current reality is that its supply chains remain as global as ever. This is clearly demonstrated by Apple's use of the A17 Pro chip, which is the first-ever 3-nanometer chip employed in an iPhone. Despite being designed in the US, Apple still relies on Taiwan Semiconductor Manufacturing (TSM) for production.

"The chip was designed by Apple in the US but manufactured in Taiwan, and the iPhone itself is largely assembled in China. This intricate global supply chain is essential for the production of the world's most advanced technologies," writes Laliberte.

In conclusion, Apple's sustainable advancements with the iPhone 15 are commendable. By implementing changes such as using recycled cobalt in batteries and maintaining a global supply chain, Apple continues to lead with innovative and conscious practices.