Month: April 2020

Categories
Tech and Culture

A More Equitable Apple Business Model

Even Apple is having to face the coronavirus music. Product announcements, like last week’s new iPhone SE launch, are now subdued due to being online-only. It is having to convert WWDC to an online-only event. Device sales are predicted to be considerably lower YoY. Fortunately for them, they’re already investing in subscription based services to tide over customers that don’t want to buy new hardware every few months.

I was reading an FT news article detailing how Apple’s Chinese contract manufacturers were having to downsize, well, by not hiring as fast they usually do. Buried in that article was a slight conversation with one factory worker who mentioned that he might be able to get a whole week off in April this year, as compared to just a day in the past years. He was also not working overtime.

Wow. I mean, we all know how hard these contractors have to work to make sure we get our new iPhones on launch day, but this is the first time that it connected to me with the name of an actual person.

While we’re enjoying our work-from-home regimen and safely self-isolating, it’s easy to forget the human toll caused by our mindless consumerism. And, it’s not just physical products that drive this consumerism; we’re also mindless consumers when it comes to financial products.

Apple enjoys one of the, if not the, highest profit margins on its products. Those margins are shared, albeit unequally, with investors and employees vested in Apple’s stock. Over the past few years, the company has been aggressively buying back its own stock to further elevate the stock price and hence the gains for its investors in the short term. So much so that investors expect the company to consistently overshoot its own earnings guidance.

It doesn’t have to be like this — Apple could easily make the gains more equitable across its value chain. While it has been forced to look into labor practices in the past, and has resorted to steps such as installing anti-suicide nets in factories, it can and should do more. There is no justifiable reason to maintain high profit margins, while innovation stays low and stock buy-backs remaining high, and while factory labor still has to work over-time and not enjoy the same amount of holidays and time-off as any software engineer or executive in the company.

Would it really matter that much if the margins reduced a little? Our devices would still cost the same; perhaps the share price would take a little downward beating, but in the long term, it would balance out and the company might in-fact be forced to actually live up to its values of innovation and user-centricity. Investors tend to forget any short-term bumps. It is also probably not a bad idea to simply stop catering to investors that don’t take a long-term view after all.

We should start expecting a higher degree of leadership from companies like Apple.

Categories
Life and Personal Tech and Culture

Unpopular Opinions

We’re in the middle of a global pandemic. There’s no shortage of news about what’s going well and what isn’t. Even then, every now and then, something pops up on the various news channels that makes you stop and think. One of these things is how Amazon recently fired 2 employees for speaking out against the company — and I have seen one of the Tweets that, apparently, “broke the camel’s back” — it was a proclamation that the employee was making a contribution towards the well-being of the various warehouse employees on Amazon’s roster that, allegedly, aren’t being taken care of and are being forced to work in life-threatening conditions.

This is not something that all of us are unaware of — just this week, France compelled Amazon to only deliver/process orders for essential items as investigations revealed that a lot of warehouse employees were having to break social-distancing rules for the sake of shipping bottles of wine or other luxurious items like Nintendo Switches. In what sounds like verbal retaliation, Amazon has responded with a threat that it would completely stop its operations in France.

This kind of corporate behavior has become so normal and acceptable over the last 2 decades that the unpopular opinion now is to actually take a personal stand over issues that don’t align with personal values. When governments force better citizenship, they’re maligned. When private individuals do as much as voice their opinions outside of work in their private time, they’re found guilty of violating social media rules in the workplace.

While most people don’t go beyond the short-term impact of such punitive action against upholding a person’s identity and values, the long term impact is tremendous. People, evolutionally, have an urge to spread and validate their inherent values. While financial compensation and social acceptance is a way to successful limit these urges, these feelings have a way of boiling over and causing more harm than necessary.

In this hyper-connected world where all of our communications, down to where we are moving and which web pages we’re clicking on is traceable back to us, and is ultimately consequential to our work place and social acceptance, it becomes that much important to separate our humanity from our workplace obligations. To that end, we need to go back to how we expressed our opinions in the early days of the Internet, and where what we said or expressed was countered in a non-personal, reasonable manner.

This was especially true at universities and schools. We all had a webpage or two, where we expressed our thoughts, our plans, and ultimately, journaled our life and experiences. There were no repercussions for questioning politics or expressing an unpopular opinion that went against the University administration. At most, you would be referred to an independent ombudsman (person?) whose goal was to help both the parties.

Contrast that to now — people, especially those with good jobs at multinational organizations, seldom find the time or build a place to express themselves using their true identity. There have been countless instances of those that did so not recovering from the repercussions for a very long time. In fact, the bigger the company, the higher the chances of never being accepted anywhere else, and the greater the risk.

This is not how it’s supposed to be.

The more people avoid free expression, the more they flock to echo chambers that have the ‘other person with nothing to lose’ voicing their opinions that they could only look at for re-affirmation, but have no way to refine or to dilute towards the less radical. The algorithms at work tend to make this echo chamber ever bigger, and the same companies that ‘enable’ this ‘free expression’ build internal mono-cultures that dampen real expression by their own employees.

Those that continue to operate free blogs and voicing free opinion do so under the pretense of having nothing to lose, which is often a result of opting not to work for these companies or to de-prioritize career advancement in the traditional sense. After all, shouldn’t the top executive at Amazon be, in fact, supporting their warehouse workers and thanking the blogger instead of ignoring any punitive action taken against them by the company?

There is glimmer of hope that the world after this latest pandemic would be the world that uses the forced pause to reflect upon the values that make us human. Already, governments are stepping up efforts to better calibrate compensation for the delivery and healthcare workers according to their real contribution to the society. The world could certainly do with more equity and equality.

And more than anything, we need to make space for the unpopular opinion, for more often than not, the opinion is a result of having spent time pondering over things that no one else deemed necessary, or because someone had the courage to go against the grain.

Categories
Economy Featured Headline Life and Personal

Coronavirus Disease

It’s being said that this is the most challenging time in the history of the world since the second world war. Never before, in the lifetime of most of us, has the world collectively faced such a steep challenge that is impacting us from all sides.

This is the world after one of our worst fears — that of a global pandemic — is finally upon us.

And, boy, was the world unprepared.

The outbreak has been in the news since at least the beginning of 2020, at least, as far as my memory serves. It started with a closed phenomenon in a very specific part of China. within a couple weeks it was being classified as a global health emergency, and after weeks of news about travel bans in country after country, it was suddenly, one day, a global pandemic.

As I type this post, The Netherlands went from one lone case to more than 11,000 at last count. The health department can still not keep up with testing demands, and although it tries its best to supply daily updates, at this point the numbers mean nothing. After people largely ignored the potential of the outbreak to disrupt their lives, the government initially imposed a 3 week ‘soft’ shutdown of all cafes, restaurants, schools, and other P2P services like hair salons. Earlier this week, this was extended by another month, and things don’t look like they’ll be a whole lot different at that point. We’re in this for the long haul.

Whereas we blamed technology for creating distances between us, now we can blame a virus. There has been a lot of positives as well — people are helping each other out. Friends and families that never talked to each other, or seldom did, now invite each other for video calls, people are cooking more often at home – there’s not much to do when you can’t go out and socialize or work, there has been a sales uptick in board games, and companies are finally waking up to the fact that remote work doesn’t make anyone any less productive than being in an office (unpredictability and powerlessness does).

We have a family chat group where I very frequently share thoughts on politics as well as current affairs. My first message goes back to January 25th when I shared that there were 3 cases of infections in France. Three days later it was found in Germany. The Netherlands got its first positive case on the 27th of February. Over days and weeks, the messages gradually went from me sharing supposedly hyped up news to how we could keep each other safe and more aware about the virus’s spread. Knowledge is power.

Today, we are inundated with news and political discourse. Seek and ye shall find opinions about anything. The same is true of COVID-19, as it is now called. Up until a couple weeks ago, there were countries where this epidemic was being considered a hoax. This when thousands had already died and many were being hospitalized. You only get empathy for what you can see or experience, and this is why people did not understand the gravity of the situation. Even here in Amsterdam, people were casually watching movies, filling up cafes, and partying it up right up to the moment where everything was shut down. Only now, after 3 weeks, do you see people actively distancing themselves from others out in the public.

Every day brings some kind of dire news — ICUs falling short, healthcare staff running out of protective gear, working overtime, people losing jobs. While there have been instances of people banding together to thank the healthcare professionals, all the cheerleading can’t make up for the fact that they’re exasperated. They can’t isolate themselves, and while the rest of the privileged world could debate whether shutdowns are better or not compared to just letting people die, these professionals know that they’re up against a challenge that puts them front and center in the enemy’s crosshairs.

And yet, some countries and people have found this to be a good time to further divide others along religious or patriotic lines. The financial news is full of reports of one country strong-arming the other in exchange of humanitarian supplies, or any one leader sowing sectarian division and hence fortifying their voter base. Clearly, not everyone has risen to the challenge to leave this world better than how we found it.

So, what’s next? I don’t know. A huge part of me is optimistic that humanity would come out stronger and more cohesive after we’re done with this. People would get back to basics, care more about the planet — after all, the climate emergency is none any lesser important than this current crisis — yet, we didn’t stop polluting the planet until now. While the virus is killing the frail and the unfortunate, cities are seeing unprecedented levels of clean air and tranquil, empty city centers. Tourism has made a full-stop. The other part of me doesn’t have much faith in our collective memories. This too shall pass and we shall slowly ramp back up to our old ways — to flying to a new city for a ‘quick weekend break’, to sitting next to people and yet being distant, to not voting for policies that seek to empower everyone with wonderful health care and employment benefits.

Time will tell what’s next.

The best we could do is to stay positive and keep caring.