tag:theconversation.com,2011:/us/topics/samsung-1118/articlesSamsung – The Conversation2024-03-19T18:17:35Ztag:theconversation.com,2011:article/2256042024-03-19T18:17:35Z2024-03-19T18:17:35ZSmart rings’ ultra-precise movement tracking takes wearable technology to the next level<figure><img src="https://images.theconversation.com/files/581943/original/file-20240314-26-1uz986.jpg?ixlib=rb-1.1.0&rect=0%2C0%2C6382%2C4248&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/male-hands-blue-velvet-box-containing-2053213751">Vigen M / Shutterstock</a></span></figcaption></figure><p>There is a lot of hype about smart rings right now – <a href="https://www.cnet.com/tech/mobile/samsung-galaxy-ring-everything-we-know-so-far/">Samsung is due to release a Galaxy ring</a>, and there is unsubstantiated speculation that <a href="https://www.forbes.com/sites/davidphelan/2024/02/27/apple-developing-ring-to-beat-samsung-galaxy-ring-report-claims/?sh=4195d8954e2c">Apple is considering a ring too</a>. But why would you want a smart ring in the first place?</p>
<p>The short answer is that they are likely to fulfil the same health and activity tracking as a watch, leaving your wrist free for a more fashionable or traditional timepiece.</p>
<p>But they can also track the your body’s movements much more precisely than other wearable technology, and record detailed information about the movement of your hands. This could allow you to control and interact with other technology in new ways – but also raise even more concerns about privacy.</p>
<p>The <a href="https://ouraring.com/">Oura ring</a> has been available since 2015 and one of us, Max, has been wearing one for more than five years. He does this to track sleep and activity data during times when he does not want to wear a watch (including sleeping). These rings track changes in your body temperature, heart rate, heart rate variability (the time intervals between heart beats), blood oxygen levels, and physical activity. A smart watch can also do much of this. </p>
<p>It is expected that the Galaxy Ring will do the same (at least that is what one of <a href="https://www.cnet.com/tech/mobile/smart-ring-competition-heats-up-with-samsungs-announcement-of-galaxy-ring/">their announcements focuses on</a>), and be added to its health and fitness range.</p>
<p>Meanwhile, <a href="https://www.patentlyapple.com/2023/08/apple-has-won-a-major-smart-ring-patent-designed-to-control-companion-device-uis-speed-scroll-documents-use-in-air-gesture.html">Apple’s patent application</a> indicates that its version may do more than monitor health. It may help control other devices, and vibrate to give users notifications.</p>
<h2>Benefits all round?</h2>
<p>Fingers are better than wrists at making specific gestures. With many more finger gesture options than arm positions, and finger gestures being the primary mode of interaction for VR (virtual reality) headsets, one probable future for smart rings is to control other devices. This would allow for the more precise detection of actions like pinching and pointing. </p>
<p>Multiple rings could work together to achieve this, with other devices. Apple’s ring patent, for example, implies that rings could be worn in different bands along the length of a single finger (not an uncommon choice with normal rings), allowing a company to know how your finger is angled. If communicating with a watch, smart rings could detect finger and hand position in relation to your arm. This potentially provides more precise interactions with VR headsets.</p>
<p>In being able to carefully track fingers, rather than wrists, smart rings might allow technology companies to understand, model, and help improve many more activities, especially in situations where cameras and sensors are less likely to be found. </p>
<p>One example of this is learning to play classical guitar, which does not involve as much strumming with the whole arm or at the wrist, but where all the skill is in the fingers. Bringing sensors closer to the body’s more dexterous touch sensors means that technology companies can more closely understand what you are doing. </p>
<h2>Status symbols</h2>
<p>Rings are jewellery, often worn to be seen. Apple is well known for making aesthetics a priority in its products. While the Galaxy ring looks a lot like the Oura Ring, it’s likely that Apple will consider the importance of personalisation and style.</p>
<p>Rings are not just worn on fingers, of course. Could rings for piercings, that go inside the body to some extent, like those on our ears or lips, give us additional data on ourselves? </p>
<figure class="align-center ">
<img alt="Woman runner using smart watch." src="https://images.theconversation.com/files/582558/original/file-20240318-18-3tco3t.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/582558/original/file-20240318-18-3tco3t.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=398&fit=crop&dpr=1 600w, https://images.theconversation.com/files/582558/original/file-20240318-18-3tco3t.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=398&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/582558/original/file-20240318-18-3tco3t.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=398&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/582558/original/file-20240318-18-3tco3t.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=501&fit=crop&dpr=1 754w, https://images.theconversation.com/files/582558/original/file-20240318-18-3tco3t.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=501&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/582558/original/file-20240318-18-3tco3t.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=501&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Smart watches have found a particular use in fitness and health monitoring.</span>
<span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/young-fitness-woman-runner-checking-time-705175816">Ground Picture / Shutterstock</a></span>
</figcaption>
</figure>
<p>There might also be value in incorporating smart technology into other adornments. There are already smart products <a href="https://www.businessinsider.com/guides/tech/best-smart-jewelry?r=US&IR=T">designed to be worn as necklaces</a>. Potentially necklaces could help monitor stress levels because stress is closely linked to breathing patterns. There has also been a <a href="https://www.fastcompany.com/90853727/this-bra-tracks-your-vital-signs">smart bra</a>.</p>
<h2>Rings signify attachment</h2>
<p>The most well-known association that a ring has is as a gift of commitment and attachment. Researchers have looked at how we can use digital technology to <a href="https://doi.org/10.1145/634067.634252">communicate with loved ones who are not physically present</a>. Apple’s smart ring patent includes haptic feedback (where technology applies forces or vibrations to the user to simulate the experience of touch).</p>
<p>Smart wedding rings could be used to transmit messages between partners – to let one of them know the other is thinking about them. For example, an interaction such as twisting the ring could make your partner’s ring vibrate.</p>
<p>However, new smart devices will generate new forms of data and tracking, raising important questions about privacy and ethics. As with other wearable technology, there may be things people do not want to track. Imagine a message from your workplace telling you: “We see you aren’t typing at your desk right now.” </p>
<p>Social problems are also a possibility. If smart technology was incorporated into wedding rings, it could give people a way of tracking what their partners were doing even more closely than smartphones can.</p>
<p>These questions highlight the importance of governments focusing on the <a href="https://www.rai.ac.uk/">responsible use of AI</a>, as well as responsible innovation. <a href="http://ico.org.uk/about-the-ico/media-centre/news-and-blogs/2023/11/be-smarter-than-your-smart-tech/">Research shows</a> that over half of British people (52%) feel like they do not know how their personal data is being collected and used.</p>
<p>Companies could create more targeted advertising based on changing circumstances, as when someone learns they are pregnant. Some regions of the world even offer cheaper life insurance to people with better health data from wearables.</p>
<p>What we should ask is: what is responsible and irresponsible for companies to track and try to infer about people from their wearables? This question should be at the forefront of thinking in the big tech companies.</p><img src="https://counter.theconversation.com/content/225604/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Horia Maior receives funding from UKRI Engineering and Physical Sciences Research Council. </span></em></p><p class="fine-print"><em><span>Max L Wilson receives funding from the UKRI Engineering and Physical Sciences Research Council, and the European Union, as well as past research funding support from Google Research.</span></em></p><p class="fine-print"><em><span>Steve Benford receives research funding from The Engineering and Physical Sciences Research Council, UKRI and the European Union. He has previously received funded from Unilever to research smart mirrors.</span></em></p>Smart rings can collect information about us that smartphones and smart watches struggle to.Horia Maior, Assistant Professor, Computer Science, University of NottinghamMax L Wilson, Associate Professor of Human-Computer Interaction, University of NottinghamSteve Benford, Professor of Collaborative Computing, University of NottinghamLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/2254652024-03-13T12:28:21Z2024-03-13T12:28:21ZWhat we know so far about the rumoured Apple smart ring<figure><img src="https://images.theconversation.com/files/581294/original/file-20240312-18-nq5gb9.jpg?ixlib=rb-1.1.0&rect=5%2C0%2C3858%2C2583&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">A generic image of a smart ring in use.</span> <span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/modern-payment-new-technology-payments-using-691766359">Fotos593 / Shutterstock</a></span></figcaption></figure><p>Samsung officially announced the launch of a new smart ring-shaped wearable device, Galaxy Ring, as <a href="https://www.youtube.com/watch?v=J7x0E0hLaJ8">part of its Galaxy Unpacked event</a> earlier this year. The ring, expected to be on sale in late summer 2024, will be able to monitor the user’s health parameters and provide insights based on the health metrics observed, which is very similar to what a smartwatch can do.</p>
<p>The global smart ring <a href="https://exactitudeconsultancy.com/reports/34772/smart-ring-market/">market is expected to grow</a> from USD$314.52 billion (£246.3 billion) in 2023 to USD$2,570.30 billion (£2,012 billion) by 2030. So it is no surprise that Apple is now rumoured to be <a href="https://www.forbes.com/sites/davidphelan/2024/02/27/apple-developing-ring-to-beat-samsung-galaxy-ring-report-claims/?sh=53a35fbd4e2c">applying for its smart ring patents</a> and is expected to have the product ready in time to compete with Samsung’s release.</p>
<p>But it might be surprising to learn that neither Samsung nor Apple are pioneers in this new wearable technology. <a href="https://ouraring.com/">Oura was launched in 2015</a> with a Kickstarter campaign for the first generation ring.</p>
<p>Now on its third generation, with the fourth one expected in 2024, this smart ring can measure respiratory rate, heart rate, health rate variability (HRV), blood oxygen levels, and body temperature. The ring also has an accelerator that logs the user’s activity and movement. However, the main question is: is wearable technology worth it?</p>
<h2>What is wearable technology?</h2>
<p>Wearable devices come in many shapes and sizes, including smart watches and sports watches, fitness trackers, head-mounted displays, smart jewellery, smart clothing, and even <a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9185336/">implantable devices</a>.</p>
<p>Technological advances have enabled manufacturers to access low-cost, low-power sensor technology and develop this variety of devices. At a minimum, wearable devices are equipped with sensors, software and connecting technology.</p>
<p>The sensors gather information from the person wearing the device, and the software gathers the data and sends it to a device with processing capacity via a wireless connection. The ecosystem on which wearable technology works is <a href="https://www.oracle.com/uk/internet-of-things/what-is-iot/">known as the Internet of Things (IoT)</a>. It is the same principle as smart technology used at home, on devices such as thermostats that can be operated from a mobile device outside the home, or smart speakers, but applied at a personal level. It is important to note that mobile devices do not process the data; it is usually sent to “the cloud” for processing, and the mobile device displays the data to the user.</p>
<p>What makes an IoT solution even more attractive is the interpretation of the data gathered by the sensors. For example, the <a href="https://ouraring.com/oura-experience">Oura Ring and the Oura Membership</a> allow users to monitor their sleep, manage stress and predict when they might get sick by monitoring body temperature and heart rate. This is all possible due to analysis of the data collected by the ring. </p>
<p>With advances in artificial intelligence (AI), it is expected that in 2024, there will be a <a href="https://www.cnet.com/tech/mobile/what-to-expect-from-smartwatches-in-2024-more-ai-new-health-features-and-more/">boost in health tracking</a>.</p>
<figure class="align-center ">
<img alt="Smart watch and smart phone." src="https://images.theconversation.com/files/581298/original/file-20240312-22-xfl78v.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/581298/original/file-20240312-22-xfl78v.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=401&fit=crop&dpr=1 600w, https://images.theconversation.com/files/581298/original/file-20240312-22-xfl78v.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=401&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/581298/original/file-20240312-22-xfl78v.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=401&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/581298/original/file-20240312-22-xfl78v.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/581298/original/file-20240312-22-xfl78v.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/581298/original/file-20240312-22-xfl78v.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Smart rings are unlikely to replicate the functionality of smart watches and other devices.</span>
<span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/data-synchronization-health-book-between-smartwatch-188507768">Alexey Boldin</a></span>
</figcaption>
</figure>
<h2>Benefits and drawbacks</h2>
<p>Smart rings come with sensors similar to those of a smartwatch. However, because of their proximity to large blood vessels in the fingers, smart rings can provide more accurate readings than smartwatches, because they can use the capillaries (small blood vessels) in your finger to get their readings. Another advantage of smart rings is that they have a longer battery life than smartwatches. However, smart rings are unlikely to come with GPS or a screen.</p>
<p>In terms of price, the cheapest version of the Oura ring starts at £299 and users must pay a membership fee of £5.99 per month, with the first month free. This is required to get all the benefits of data analysis. However, the ring will still work with the Oura mobile app. The most affordable version of the AppleWatch, the SE version, starts at £219, while the Samsung Galaxy Watch6 Bluetooth starts at £239.</p>
<p>Smart rings can’t and won’t be able to replicate the functionality offered by a smartwatch. However, they represent an attractive choice for users interested in health tracking, who also want a simple device with minimalistic features. <a href="https://www.cnet.com/tech/mobile/samsungs-surprise-galaxy-ring-whos-the-wearable-actually-for/">Bryan Ma</a>, the Vice President of devices research at International Data Corporation, has said: “The idea behind such rings is not so much about being cheaper than smartwatches, but instead being a much smaller and discrete device for use in cases like sleep tracking.”</p>
<h2>The future of wearable technology?</h2>
<p>Wearable technology will continue evolving, with a strong focus on health monitoring. For example, Microsoft has been <a href="https://duoskin.media.mit.edu/">exploring smart tattoos</a> as the next generation of wearable tech since 2016. However, due to the labour intensive fabrication technique for gold leaf, which is used in the tattoos, researchers are now focusing on more robust, advanced, and inexpensive materials.</p>
<p>Researchers at the University of Washington have also <a href="https://www.washington.edu/news/2024/02/07/smart-earrings-can-monitor-temperature/">developed the thermal earring</a>. This was able to measure the user’s earlobe temperature but shows promise for other areas of monitoring, including for eating and exercise. Although not commercially available, this device demonstrates how engineers are developing new ideas for wearable devices.</p>
<p>Under Armour already sells <a href="https://www.underarmour.com/en-us/t/connected-shoes-page.html">running shoes embedded with Bluetooth and sensors</a> that track run statistics such as distance and pace. The shoes also measure running from metrics such as cadence (steps per minute), ground contact time, foot strike angle and stride length. </p>
<p>The app provides real time audio coaching, but only focuses on cadence. In future, we can expect to see advances in <a href="https://www.feelgoodcontacts.com/blog/smart-contact-lenses-of-the-future">smart contact lenses</a>, <a href="https://shop.jakcom.com/products/jakcom-n3-smart-nail-chip">smart nails</a>, <a href="https://www.nordicsemi.com/Nordic-news/2018/02/beam-smart-button">smart buttons</a>, and many more.</p>
<h2>Is wearable technology worth it?</h2>
<p>The expected increase in the market size of this technology shows users’ interest in monitoring their health and improving their lifestyle. Developments in the Internet of Things, in general, have improved our way of life and supported our wellbeing.</p>
<p>Connected devices collect, track, and store user data, which is the primary purpose of the technology. What users need to know is that many wearable devices share data with third party apps and services, and it is often unclear how this data is being used. The data can be sold to other companies or utilised for different purposes without the user’s knowledge or consent. Moreover, <a href="https://www.cnbc.com/2016/01/08/theres-a-hack-for-that-fitbit-user-accounts-attacked.html">wearable devices can be hacked</a>.</p>
<p>With this in mind, and as we have done with all new technology, users must consider the advantages of wearable technology and determine if the risks are worth taking. If security and data privacy are a concern, users are encouraged to follow all security recommendations provided by experts and manufacturers to protect their devices and research more on how their data is used and shared.</p><img src="https://counter.theconversation.com/content/225465/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Erika Sanchez-Velazquez does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>What are the benefits and drawbacks of putting smart technology into a ring?Erika Sanchez-Velazquez, Deputy Head of School, Computing and Information Science, Anglia Ruskin UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/2149562023-10-05T03:34:32Z2023-10-05T03:34:32ZShould you charge your phone overnight? Will ‘overcharging’ make it explode? Common battery myths debunked<figure><img src="https://images.theconversation.com/files/552250/original/file-20231005-25-od3clj.jpg?ixlib=rb-1.1.0&rect=29%2C44%2C2466%2C1710&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><span class="source">Shutterstock</span></span></figcaption></figure><p>In the world of lithium-ion batteries, smartphones take centre stage. Yet they’ve also sparked an ongoing debate: does prolonged (or overnight) charging wreak havoc on your battery?</p>
<p>A number of factors determine a phone battery’s lifespan, including its manufacturing age and its chemical age. The latter refers to the battery’s gradual degradation due to variables such as fluctuations in temperature, charging and discharging patterns and overall usage.</p>
<p>Over time, the chemical ageing of <a href="https://ieeexplore.ieee.org/stamp/stamp.jsp?arnumber=8720247">lithium-ion batteries</a> reduces charge capacity, battery lifespan and performance.</p>
<p><a href="https://support.apple.com/en-au/HT208387">According</a> to Apple:</p>
<blockquote>
<p>A normal [iPhone] battery is designed to retain up to 80% of its original capacity at 500 complete charge cycles when operating under normal conditions.</p>
</blockquote>
<p><a href="https://www.sciencedirect.com/science/article/pii/S0959652620354342">Research has found</a> a 2019 smartphone battery could, on average, undergo 850 full charge/discharge cycles before dropping to below 80% capacity. This means only <a href="https://ieeexplore.ieee.org/abstract/document/7299844">80%</a> of the initial battery capacity remains after about two to three years of use. At this point the battery begins to deplete noticeably faster. </p>
<h2>Should you charge your phone overnight?</h2>
<p>Most new-generation smartphones will <a href="https://au.anker.com/blogs/chargers/how-long-does-it-take-for-a-phone-to-charge-from-0-100">take</a> somewhere between 30 minutes <a href="https://www.androidauthority.com/samsung-galaxy-s23-charging-speed-3287167/">and two hours</a> to charge fully.</p>
<p>Charging times vary depending on your device’s battery capacity – larger capacities require more time – as well as <a href="https://batteryuniversity.com/article/bu-409-charging-lithium-ion">how much power</a> your charger supplies. </p>
<p>Charging your phone overnight is <a href="https://ieeexplore.ieee.org/abstract/document/7299844">not only unnecessary</a>, it also accelerates battery ageing. Full charging cycles (going from <a href="https://link.springer.com/article/10.1007/s42341-021-00357-6">0%–100%)</a> should be avoided to maximise your battery’s lifespan.</p>
<p><a href="https://www.samsung.com/ae/support/mobile-devices/battery-protection-feature-in-samsung-s23-series/">Samsung</a> says:</p>
<blockquote>
<p>charging your battery up to 100% too frequently may negatively impact the overall lifespan of the battery.</p>
</blockquote>
<p>Similarly, keeping <a href="https://support.apple.com/en-us/HT208710">iPhones</a> at full charge for extended periods may compromise their battery health.</p>
<p>Rather than a full top-up, it’s recommended to charge your battery up to <a href="https://link.springer.com/article/10.1007/s42341-021-00357-6">80%</a> and not allow it to dip under <a href="https://www.samsung.com/uk/support/mobile-devices/how-can-i-optimise-and-extend-the-battery-life-on-my-samsung-galaxy-smartphone/">20%</a>. </p>
<h2>Can your phone be overcharged?</h2>
<p>In theory, lithium-ion batteries can be overcharged. This can lead to <a href="https://esa.act.gov.au/be-emergency-ready/lithium-ion-batteries">safety risks</a> such as the battery overheating and catching fire. The good news is most modern phones have an in-built protection that automatically stops the battery from charging further than 100% – preventing any damage from overcharging. </p>
<p>However, each time a battery drops to 99% (due to apps running in the background) it will “<a href="https://whatthetech.tv/what-is-battery-trickle-and-why-is-it-making-your-phone-die/">trickle charge</a>”: it will start charging again to maintain a fully charged state.</p>
<p>Trickle charging can wear a battery down over time. That’s why many manufacturers have features to regulate it. Apple’s <a href="https://support.apple.com/en-au/HT210512">iPhones</a> offer functionality to delay charging past 80%. <a href="https://www.samsung.com/ae/support/mobile-devices/battery-protection-feature-in-samsung-s23-series/">Samsung’s Galaxy</a> phones provide the option to cap the charge at 85%.</p>
<h2>Can your phone explode from charging?</h2>
<p>It’s very unlikely your smartphone will explode as a result of charging – especially since most phones now have automatic protections against overcharging.</p>
<p>Still, over the years we have seen <a href="https://www.firstpost.com/india/shocking-school-girl-dies-after-mobile-phone-explodes-in-her-hand-12503252.html">several</a> <a href="https://www.nbcnews.com/tech/tech-news/samsung-finally-explains-galaxy-note-7-exploding-battery-mess-n710581">reports</a> of phones exploding unexpectedly. This usually <a href="https://iopscience.iop.org/article/10.1088/1742-6596/1952/3/032037/pdf">happens as a result</a> of manufacturing faults, poor-quality hardware or physical damage.</p>
<p>Lithium-ion phone batteries <a href="https://www.fire.nsw.gov.au/page.php?id=9389">overheat when</a> the heat generated during charging is unable to dissipate. This may cause burns or, in extreme cases, lead to a fire.</p>
<p>Also, these batteries operate effectively within a <a href="https://link.springer.com/article/10.1007/s42341-021-00357-6">temperature</a> range of 0°C to 40°C. They may expand at <a href="https://www.mdpi.com/2227-9717/10/6/1192">higher ambient temperatures</a>, potentially causing a fire or explosion.</p>
<p>Using an incorrect, faulty or poor-quality <a href="https://iopscience.iop.org/article/10.1088/1742-6596/1952/3/032037/pdf">charger or cable</a> can also lead to overheating, fire hazards and damage to the phone itself.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/phone-wet-and-wont-turn-on-heres-how-to-deal-with-water-damage-hint-soaking-it-in-rice-wont-work-158633">Phone wet and won't turn on? Here's how to deal with water damage (hint: soaking it in rice won't work)</a>
</strong>
</em>
</p>
<hr>
<h2>Tips to enhance your battery’s lifespan</h2>
<p>Although your phone probably has in-built safety mechanisms to protect its battery, taking a cautious approach will make it last even longer. Here are some ways to protect your phone’s battery:</p>
<ol>
<li><p>install the latest software updates to keep your phone up-to-date with the manufacturer’s battery efficiency enhancements</p></li>
<li><p>use original or certified power chargers, as the power delivery (amps, volts and watts) in off-market chargers can differ and may not meet the required safety standards</p></li>
<li><p>avoid exposing your phone to high temperatures – <a href="https://www.apple.com/batteries/maximizing-performance/">Apple</a> and <a href="https://www.samsung.com/us/support/answer/ANS00076952/">Samsung</a> say their phones work best at 0°C to 35°C ambient temperatures</p></li>
<li><p>limit your charging to 80% of the full capacity and don’t let it dip below 20%</p></li>
<li><p>don’t leave your phone charging for an extended period, such as overnight, and disconnect it from the power source if the battery reaches 100%</p></li>
<li><p>keep your phone in a <a href="https://support.apple.com/en-gb/guide/iphone/iph301fc905/ios">well-ventilated</a> area while it’s charging and avoid placing it or the charger under a blanket, pillow or your body while it’s connected to a power source</p></li>
<li><p>monitor your battery health and use to identify unusual trends, such as taking an excessive time to charge, or rapid draining</p></li>
<li><p>if you notice your phone is heating up excessively, or has a bulging or swollen back, get an authorised service centre to check and repair it.</p></li>
</ol>
<p>If you want specific details about your particular phone and battery, the best option is to follow the manufacturer’s guidelines.</p>
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Read more:
<a href="https://theconversation.com/its-2022-why-do-we-still-not-have-waterproof-phones-185775">It's 2022. Why do we still not have waterproof phones?</a>
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<img src="https://counter.theconversation.com/content/214956/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Ritesh Chugh does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Plus 8 tips for maximising your battery’s lifespan.Ritesh Chugh, Associate Professor - Information and Communications Technology, CQUniversity AustraliaLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1905902022-09-14T12:23:49Z2022-09-14T12:23:49ZWhy Apple can hold the line on iPhone prices, as smartphones defy soaring inflation and keep getting relatively cheaper<figure><img src="https://images.theconversation.com/files/484435/original/file-20220913-3906-odsi4i.jpg?ixlib=rb-1.1.0&rect=264%2C233%2C3552%2C2495&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Apple chose not to raise prices on its new iPhone.
</span> <span class="attribution"><a class="source" href="https://newsroom.ap.org/detail/AppleEvent/0f115ebea2b143abb160fad31758d497/photo?Query=iPhone%2014&mediaType=photo&sortBy=arrivaldatetime:desc&dateRange=Anytime&totalCount=260&currentItemNo=0">AP Photo/Jeff Chiu</a></span></figcaption></figure><p><a href="https://www.wsj.com/articles/us-inflation-consumer-price-index-january-2022-11644452274">Inflation in the U.S. is surging</a> to near a 40-year high, with prices on food, fuel and pretty much everything seeming to rise more every month. </p>
<p>Smartphones may be an exception.</p>
<p>Apple, for example, recently announced its new versions of the iPhone and other gadgets, and <a href="https://www.cnbc.com/2022/09/07/apples-biggest-iphone-surprise-no-us-price-hikes.html">turned a lot of heads</a> when it said it wouldn’t charge more despite higher costs to make the devices. </p>
<p>This is puzzling because <a href="https://www.forbes.com/sites/laurendebter/2022/05/02/companies-rush-to-raise-prices-while-they-still-can">companies typically raise prices</a> in line with inflation – or at least enough to cover the increased costs of making their products. </p>
<p>Consumer price data tells an even more befuddling story. The latest consumer price index data suggests <a href="https://www.bls.gov/news.release/cpi.t02.htm">smartphone prices are actually down</a> 20.4% in August from a year ago, according to an index released on Sept. 13, 2022. That’s the biggest drop of any detailed expenditure item the Bureau of Labor Statistics tracks, and contrasts with the overall 8.3% increase in prices. </p>
<p>What’s going on? </p>
<p>As <a href="http://businessmacroeconomics.com/">an economist</a> teaching <a href="https://www.bu.edu/questrom/">business school students</a>, I enjoy exploring and explaining these economic puzzles. I believe there are two basic explanations – one for the data and another for Apple. </p>
<h2>Why consumer prices on smartphones fell</h2>
<p>The story behind the consumer price index data is easier to explain, if a bit technical. </p>
<p>The 20% drop over the past year isn’t unusual for smartphones. In fact, according to the index, they almost always go down from month to month. Since the end of 2019, smartphone prices have come down a whopping 40%. </p>
<p><iframe id="Avb61" class="tc-infographic-datawrapper" src="https://datawrapper.dwcdn.net/Avb61/2/" height="400px" width="100%" style="border: none" frameborder="0"></iframe></p>
<p>And though smartphones are showing the biggest drop in the index, tech gear more broadly – from computers to smartwatches – also tend to fall over time. In the previous 12 months, televisions are down 19% and what the government calls <a href="https://www.bls.gov/news.release/cpi.t02.htm">information technology commodities are down 8.8%</a>. </p>
<p>Part of the reason for their steady decline is found buried in the <a href="https://www.bls.gov/cpi/factsheets/telephone-hardware.htm">Bureau of Labor Statistics website</a>. The consumer price index tries to measure a <a href="https://www.bls.gov/opub/hom/cpi/data.htm">constant quality</a> of goods and services in the economy. This means it seeks to track the price changes of the exact same set of goods and services each month. It’s comparing the price today with the price of the exact same thing a month or year ago. </p>
<p>For most goods, it’s not really an issue because their quality doesn’t change much over relatively small periods of time. For example, an apple you bite into today is pretty much the same as an apple you ate a year ago. </p>
<p>Smartphones and other technology-heavy gadgets are different. Because smartphones <a href="https://www.technologyreview.com/2020/03/05/905500/smartphone-innovation-in-the-third-decade-of-the-21st-century/">are constantly improving in quality</a> – with the latest updates of an iPhone or Samsung Galaxy <a href="https://www.nytimes.com/2007/06/27/technology/27apple.html">awaited breathlessly</a> every year – it is more difficult to ensure you’re comparing prices of products of the exact same quality. </p>
<p>For rapidly improving items, the Bureau of Labor Statistics uses what are called “<a href="https://www.bls.gov/cpi/quality-adjustment/questions-and-answers.htm">hedonic regression models</a>” to estimate these changes in quality over time. Hedonic models measure the same amount of satisfaction. While this sounds complicated, the goal is simple: to figure out how much each new smartphone feature changes the price. </p>
<p>As a consumer, you are essentially doing this whenever you decide whether it is worth paying the extra money for that marginally <a href="https://www.cnn.com/cnn-underscored/electronics/iphone-14-should-you-upgrade">better camera or extended battery life</a> when buying a new phone. </p>
<p>And so, the 20.4% drop doesn’t mean you’re going to pay less for a new smartphone. But it does suggest you’re getting 20% more bang for your buck versus the same phone a year earlier. <a href="https://www.washingtonpost.com/technology/2022/09/08/iphone-14-hands-on/">Whether it’s worth it</a> is another question.</p>
<h2>Why Apple kept prices flat</h2>
<p>That brings us to why Apple didn’t change its prices, even as the quality of the iPhone improved and supply chain costs went up. </p>
<p>Beyond the quality issues, one of the main ways supply chain problems are affecting phones is in the <a href="https://www.bloomberg.com/news/newsletters/2022-08-19/the-chip-shortage-isn-t-over-quite-yet">shortage of computer chips</a>. If there is any product dependent on computer chips, it is smartphones. The shortage has resulted in <a href="https://www.consumerreports.org/buying-a-car/global-chip-shortage-makes-it-tough-to-buy-certain-cars-a8160576456/">delays to produce cars, trucks</a> and <a href="https://www.bloomberg.com/news/articles/2022-04-21/chip-starved-firms-are-scavenging-silicon-from-washing-machines">many other consumer items</a>. </p>
<p>The shortage has also increased the price of semiconductor parts. The U.S. government’s producer price index shows the price of <a href="https://fred.stlouisfed.org/series/WPU11784711">semiconductor parts like chips and wafers</a> steadily rising since the COVID-19 pandemic began in 2020, after falling for years. Chip prices <a href="https://www.usnews.com/news/technology/articles/2022-05-13/samsung-in-talks-to-hike-chipmaking-prices-by-up-to-20-bloomberg-tv">are likely going up 20% in the next year</a>.</p>
<p>For these and other reasons, <a href="https://www.cnbc.com/2022/09/06/apple-iphone-14-pro-price-bump-expected-over-last-years-models.html">analysts were expecting</a> Apple to increase its prices. </p>
<p>Instead, Apple released its latest iPhone models at the same prices as the last two models, or <a href="https://www.apple.com/iphone-14/">US$799 for the iPhone 14</a> and $999 for the pro version. Keeping prices constant during inflationary times means iPhones are getting relatively cheaper.</p>
<p>So why isn’t Apple increasing prices? Is it just being kind to its customers, who have fueled <a href="https://www.investopedia.com/apple-s-5-most-profitable-lines-of-business-4684130">tremendous profits</a> for the company <a href="https://www.statista.com/statistics/267728/apples-net-income-since-2005/">over the past decade</a>?</p>
<p>Probably not. </p>
<p>With a <a href="https://www.cnbc.com/2021/04/28/apple-price-hikes-and-services-growth-produced-a-42point5percent-gross-margin.html">gross profit margin of over 40%</a> – meaning that’s how much it makes over the cost of producing all its products and services – Apple can probably afford to absorb increased chip and other component costs. </p>
<p>My best guess, since the smartphone market is fairly competitive, is that Apple is keeping prices the same to build market share in the U.S. – <a href="https://9to5mac.com/2022/09/02/iphone-us-market-share/">beyond the record 50% it recently hit</a> – so the iPhone remains <a href="https://www.counterpointresearch.com/global-top-10-smartphones-2021/">one of the best-selling smartphones</a>.</p>
<p>So while the cost of almost everything we buy is rising, you can take some comfort in knowing at least one item is getting both better over time and not succumbing to an inflationary price spiral.</p><img src="https://counter.theconversation.com/content/190590/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Jay L. Zagorsky does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Despite the highest inflation rates in 40 years, Apple chose not to raise prices on its gadgets. More bizarre, the consumer price index suggests smartphones are 20% cheaper than a year ago.Jay L. Zagorsky, Clinical associate professor, Boston UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1857752022-06-30T02:55:26Z2022-06-30T02:55:26ZIt’s 2022. Why do we still not have waterproof phones?<figure><img src="https://images.theconversation.com/files/471543/original/file-20220629-16-df6uym.jpeg?ixlib=rb-1.1.0&rect=26%2C44%2C5964%2C3943&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><span class="source">Shutterstock</span></span></figcaption></figure><p>While manufacturers have successfully increased the water-repelling nature of smartphones, they are still far from “waterproof”. A water-resistant product can usually resist water penetration to some extent, but a waterproof product is (meant to be) totally impervious to water.</p>
<p>Last week, Samsung Australia was <a href="https://www.accc.gov.au/media-release/samsung-australia-to-pay-14m-penalty-for-misleading-water-resistance-claims">fined A$14 million</a> by the Australian Federal Court over false representations in ads of the water resistance of its Galaxy phones. The tech giant admitted that submerging Galaxy phones in pool or sea water could corrode the charging ports and stop the phones from working, if charged while still wet. </p>
<p>Similarly, in 2020, Apple was fined <a href="https://www.cnet.com/tech/mobile/apple-fined-12m-dollars-by-italy-over-iphone-water-resistance-claims/">€10 million</a> (about A$15.3 million) in Italy for misleading claims about the water resistance of iPhones.</p>
<p>It’s very common for phones to become damaged as a result of being dropped in water. In a 2018 survey in the US, <a href="https://www.statista.com/statistics/959492/us-top-common-smartphone-damage-cause/">39%</a> of respondents said they’d dropped their phones in water. <a href="https://www.consumeraffairs.com/news/damaged-devices-a-fact-of-life-for-most-smartphone-users-100614.html">Other</a> <a href="https://www.consumeraffairs.com/news/damaged-devices-a-fact-of-life-for-most-smartphone-users-100614.html">surveys</a> have had similar results. </p>
<p>So why is it in 2022 – a time where technological marvels surround us – we still don’t have waterproof phones?</p>
<h2>Waterproof vs water-resistant</h2>
<p>There’s a <a href="https://www.iec.ch/ip-ratings">rating system</a> used to measure devices’ resistance against solids (such as dust) and liquids (namely water). It’s called the Ingress Protection (IP) rating. </p>
<p>An IP rating will have two numbers. In a rating of IP68, the 6 refers to protection against solids on a scale of 0 (no protection) to 6 (high protection), and 8 refers to protection against water on a scale of 0 (no protection) to 9 (high protection).</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/471066/original/file-20220627-13-hyrp6k.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="Chart showing International Electrotechnical Commission's IP Ratings Guide" src="https://images.theconversation.com/files/471066/original/file-20220627-13-hyrp6k.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/471066/original/file-20220627-13-hyrp6k.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=600&fit=crop&dpr=1 600w, https://images.theconversation.com/files/471066/original/file-20220627-13-hyrp6k.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=600&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/471066/original/file-20220627-13-hyrp6k.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=600&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/471066/original/file-20220627-13-hyrp6k.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=754&fit=crop&dpr=1 754w, https://images.theconversation.com/files/471066/original/file-20220627-13-hyrp6k.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=754&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/471066/original/file-20220627-13-hyrp6k.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=754&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">The International Electrotechnical Commission is the body behind the IP ratings guide.</span>
<span class="attribution"><span class="source">International Electrotechnical Commission</span></span>
</figcaption>
</figure>
<p>Interestingly, the benchmark for the water-resistance rating varies between manufacturers. For example, Samsung’s IP68-certified phones are <a href="https://www.samsung.com/global/galaxy/what-is/water-resistant/">water-resistant</a> to a maximum depth of 1.5m in freshwater for up to 30 minutes, and the company cautions against beach or pool use. Some of <a href="https://support.apple.com/en-au/HT207043">Apple’s iPhones</a> with an IP68 rating can be used at a maximum depth of 6m for up to 30 minutes. </p>
<p>Yet both <a href="https://www.samsung.com/au/support/warranty/">Samsung</a> and <a href="https://support.apple.com/en-au/HT207043">Apple</a> are unlikely to consider repairing your water-damaged phone under their warranties.</p>
<p>Moreover, IP rating testing is done under <a href="https://discussions.apple.com/thread/251513569">controlled</a> laboratory conditions. In real-life scenarios such as boating, swimming or snorkelling, factors including speed, movement, water pressure and alkalinity all vary. So, gauging a phone’s level of water resistance becomes complicated.</p>
<h2>How are phones made water-resistant?</h2>
<p>Making a phone water-resistant requires several components and techniques. Typically, the first <a href="https://www.cnet.com/tech/mobile/how-does-waterproofing-work-apple-iphone-7-samsung-galaxy-s7-sony-xperia/">point of protection</a> is to form a physical barrier around all ingress (entry) points where dust or water could enter. These include the buttons and switches, speakers and microphone outlets, the camera, flash, screen, phone enclosure, USB port and SIM card tray. </p>
<p>These points are <a href="https://ieeexplore.ieee.org/stamp/stamp.jsp?arnumber=8671469">covered and sealed</a> using glue, adhesive strips and tapes, silicone seals, rubber rings, gaskets, plastic and metal meshes and water-resistant membranes. After this, a layer of ultra-thin polymer <a href="https://www.conformalcoating.co.uk/index.php/materials/nano-coatings/%22%22">nanocoating</a> is applied to the phone’s circuit board to help repel water.</p>
<p>Nevertheless, a phone’s water resistance will still <a href="https://www.phonearena.com/news/phone-not-waterproof-water-resistant-forever_id115587">decrease</a> with time as components age and deteriorate. Apple <a href="https://support.apple.com/en-au/HT207043">admits</a> water- and dust-resistance are not permanent features of its phones.</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/471544/original/file-20220629-19-pektlc.jpeg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="Phone gets flushed in a toilet bowl" src="https://images.theconversation.com/files/471544/original/file-20220629-19-pektlc.jpeg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/471544/original/file-20220629-19-pektlc.jpeg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/471544/original/file-20220629-19-pektlc.jpeg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/471544/original/file-20220629-19-pektlc.jpeg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/471544/original/file-20220629-19-pektlc.jpeg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/471544/original/file-20220629-19-pektlc.jpeg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/471544/original/file-20220629-19-pektlc.jpeg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Many people drop their phones down the toilet – be careful!</span>
<span class="attribution"><span class="source">Shutterstock</span></span>
</figcaption>
</figure>
<p>Cameras are not entirely impervious to water, but some can tolerate submersion a lot better than smartphones. Often that’s because they’re relatively simpler devices. </p>
<p>A smartphone has much more functionality, which means internal components are more sensitive, fragile, and must be built into a smaller casing. All of these factors make it doubly difficult to afford phones a similar level of water resistance.</p>
<p>Adding water resistance to phones also <a href="https://inshorts.com/en/news/waterproof-phones-would-cost-2030-more-xiaomi-1466431118612">increases their price</a> for consumers (by 20% to 30%, according to Xiaomi’s co-founder). This is a major consideration for manufacturers – especially since even a small crack can render any waterproofing void.</p>
<h2>Keeping devices dry</h2>
<p>Apart from nanocoating on the internal circuit boards, applying <a href="https://www.techradar.com/au/news/phone-and-communications/mobile-phones/why-aren-t-all-our-smartphones-waterproof-right-now-1327692">water-repellent coating</a> to the exterior of a phone could boost protection. <a href="https://www.p2i.com/solutions/">Some</a> <a href="https://www.hzo.com/solutions/protection-capabilities/">companies</a> are working on this technology for manufacturers. </p>
<p>Future phones <a href="https://www.sciencedirect.com/science/article/abs/pii/S003039922031327X">might also have</a> circuitry that’s fabricated directly onto (waterproof) silicone material using laser writing techniques, and further coated with water-repellant technologies.</p>
<p>For now, however, there’s no such thing as a <em>waterproof</em> phone. If your phone does find itself at the bottom of a pool or toilet and isn’t turning on, make sure you take the best steps to ensure it dries out properly (and isn’t further damaged).</p>
<p>You can also buy a waterproof case or dry pouch if you want to completely waterproof your phone for water activities.</p>
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Read more:
<a href="https://theconversation.com/phone-wet-and-wont-turn-on-heres-how-to-deal-with-water-damage-hint-soaking-it-in-rice-wont-work-158633">Phone wet and won't turn on? Here's how to deal with water damage (hint: soaking it in rice won't work)</a>
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<img src="https://counter.theconversation.com/content/185775/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Ritesh Chugh does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Our GoPros tend to fare relatively well submerged underwater — so why isn’t it the same with our smartphones?Ritesh Chugh, Associate Professor - Information and Communications Technology, CQUniversity AustraliaLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1785162022-03-09T18:09:49Z2022-03-09T18:09:49ZWhy Apple, Disney, IKEA and hundreds of other Western companies are abandoning Russia with barely a shrug<figure><img src="https://images.theconversation.com/files/450817/original/file-20220308-17181-yumwpg.jpg?ixlib=rb-1.1.0&rect=134%2C239%2C3761%2C2354&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Muscovites rushed to buy furniture and other goods from IKEA before it closed its Russian stores.</span> <span class="attribution"><a class="source" href="https://newsroom.ap.org/detail/RussiaWarUkraineEconomy/bfef81caccce40939ef2963011fdafb2/photo?Query=russia%20close%20store&mediaType=photo&sortBy=creationdatetime:desc&dateRange=Anytime&totalCount=10&currentItemNo=7">AP Photo/Vladimir Kondrashov</a></span></figcaption></figure><p>Many companies in the U.S. and elsewhere have been quick to sever ties to Russia – going well beyond applying the <a href="https://www.bloomberg.com/news/articles/2022-02-28/sanctions-imposed-so-far-on-russia-from-the-u-s-eu-and-u-k">sanctions ordered by their governments</a>. </p>
<p>IKEA, Nike and H&M are <a href="https://edition.cnn.com/2022/03/03/business/ikea-h-and-m-russia/index.html">temporarily closing their Russian stores</a>. Disney, Sony and Warner Bros. <a href="https://www.theguardian.com/film/2022/mar/01/disney-and-warner-bros-pause-film-releases-in-russia-over-ukraine-invasion">paused the release of new films</a> in Russia. Apple, Samsung and Microsoft <a href="https://www.cnet.com/news/apple-microsoft-and-other-tech-companies-stop-sales-in-russia/">stopped selling their products there</a>. McKinsey, Ernst & Young and many other top <a href="https://www.wsj.com/articles/big-auditors-to-leave-russia-amid-invasion-of-ukraine-11646666419?mod=djemCFO">accounting</a> and <a href="https://www.ft.com/content/6c412673-d65e-4e75-adbb-08146c42387c">consulting firms</a> said they are leaving the Russian market – possibly for good. </p>
<p>In all, <a href="https://som.yale.edu/story/2022/over-200-companies-have-withdrawn-russia-some-remain">over 300 companies have announced plans</a> to close stores, reassign staff or stop selling products in Russia since the invasion began on Feb. 24, 2022, according to a running tally by Yale management professor Jeffrey Sonnenfeld. Most recently, <a href="https://www.cnn.com/2022/03/08/business/mcdonalds-pepsi-coke-russia/index.html">McDonald’s</a>, <a href="https://www.nytimes.com/live/2022/03/08/business/stocks-economy-inflation-ukraine">Starbucks</a> and Coca-Cola joined the list on March 8, 2022, announcing they would close stores and cease sales.</p>
<p>In some ways, these decisions fit in with a <a href="https://theconversation.com/how-corporate-ceos-found-their-political-voice-83127">recent trend in which companies have increasingly staked out</a> public positions on often controversial social and political issues, such as restrictions on trans rights and ability to vote. As <a href="https://business.rice.edu/person/douglas-schuler">business professors</a> <a href="https://scholar.google.com/citations?user=k7slUggAAAAJ&hl=en&oi=ao">who study why</a> companies engage in activism, we feel the same factors that have driven those decisions to speak out are at work over Ukraine. </p>
<p>But we also believe Ukraine stands out for one important reason: For many of these companies, it may have been one of the easiest stands they’ve ever taken – even if there is a financial cost.</p>
<h2>Taking a stand</h2>
<p><a href="https://www.doi.org/10.1177/0022242920937000">Corporate sociopolitical activism</a> – the technical term we use – entails companies making public declarations or taking actions about significant social or political issues that extend beyond their core business. </p>
<p>Until relatively recently, <a href="https://theconversation.com/how-corporate-ceos-found-their-political-voice-83127">companies rarely took stands</a> on social or political issues. </p>
<p>That didn’t really change until the 2000s, when LBGTQ rights were under attack and major companies such as <a href="https://www.reuters.com/article/us-walmart-arkansas-analysis-idUSKBN0MT13E20150402">Walmart spoke out</a> against bills that would have allowed discrimination.</p>
<p>Since then, there’s been a <a href="https://qz.com/work/1797058/2020-is-the-year-corporate-activism-and-global-political-risk-converge/">surge in companies taking proactive stands</a> on issues ranging from climate activism and racism to abortion and voting rights. </p>
<p>For example, in the wake of the murder of George Floyd by police in Minneapolis in 2020, hundreds of CEOs <a href="https://www.cnbc.com/2020/06/11/ceos-unveil-plans-against-racial-inequality-after-george-floyd-death.html">signed a pledge</a> against racial discrimination and <a href="https://www.ceoaction.com/purpose/">created an organization dedicated</a> to diversity, equity and inclusion. In 2021, the CEOs of Dell, American Airlines, Southwest Airlines and AT&T <a href="https://www.npr.org/2021/04/02/983709091/these-are-the-businesses-speaking-out-against-texass-newly-proposed-election-law">spoke out against a Texas bill</a> aimed at making it more difficult for citizens to vote. </p>
<p>Others have taken more decisive action. <a href="https://www.npr.org/2021/09/08/1035045952/lyft-uber-will-pay-drivers-legal-fees-if-theyre-sued-under-texas-abortion-law">Uber and Lyft</a> said they would pay to defend their drivers if they got sued under a Texas law that allows anyone to sue a person who helps someone get an abortion. And in 2016, <a href="https://www.cnbc.com/2017/03/27/bathroom-bill-to-cost-north-carolina-376-billion.html">PayPal and the NCAA pulled business</a> from North Carolina after the state passed a bill limiting LGBTQ protections.</p>
<p><a href="https://www.mckinsey.com/industries/consumer-packaged-goods/our-insights/great-expectations-navigating-challenging-stakeholder-expectations-of-brandsexpectations-of-brands">Surveys show</a> <a href="https://www.ipsos.com/sites/default/files/ct/publication/documents/2021-11/ipsos-global-trends-2021-report.pdf">today’s consumers expect</a> <a href="https://www.5wpr.com/new/wp-content/uploads/pdf/5W_consumer_culture_report_2020final.pdf">companies to live up</a> to the <a href="https://certusinsights.com/wp-content/uploads/2019/10/Markstein-Social-Responsibility-_-Certus-Insights-Research-_.pdf">values they espouse</a> in their press releases, and big corporate groups such as the Business Roundtable even began <a href="https://www.businessroundtable.org/business-roundtable-redefines-the-purpose-of-a-corporation-to-promote-an-economy-that-serves-all-americans">urging companies</a> to focus on creating value for everyone – not just shareholders. </p>
<figure class="align-center ">
<img alt="a crowd marches in a city street behind a banner that reads justice for George" src="https://images.theconversation.com/files/451007/original/file-20220309-20-12axmhb.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/451007/original/file-20220309-20-12axmhb.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/451007/original/file-20220309-20-12axmhb.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/451007/original/file-20220309-20-12axmhb.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/451007/original/file-20220309-20-12axmhb.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/451007/original/file-20220309-20-12axmhb.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/451007/original/file-20220309-20-12axmhb.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Many companies spoke out against racism after George Floyd’s murder inspired months of protests, like this one on the first anniversary of his death.</span>
<span class="attribution"><a class="source" href="https://newsroom.ap.org/detail/RacialInjustice-MinnesotaProtests/b9a714aa8e5c4a0d8981cff7ae70176f/photo?Query=George%20Floyd%20protest&mediaType=photo&sortBy=creationdatetime:desc&dateRange=Anytime&totalCount=11555&currentItemNo=113">AP Photo/Christian Monterrosa</a></span>
</figcaption>
</figure>
<h2>Why companies speak out</h2>
<p>More specifically, <a href="https://www.econbiz.de/Record/don-t-mix-business-with-politics-understanding-stakeholder-reactions-to-corporate-political-activism-appels-moritz/10012303252">research</a> has identified <a href="https://www.doi.org/10.5465/amr.2018.0084">three major factors</a> that typically drive a company’s decision to pursue corporate activism: employee beliefs, consumer pressure and the <a href="https://hbr.org/2018/01/the-new-ceo-activists">CEO’s personal involvement</a> or conviction. </p>
<p>It’s not always clear what is driving corporate decisions to suspend operations in Russia, but it seems as if all three factors are at play. </p>
<p>IKEA, for example, <a href="https://about.ikea.com/en/newsroom/2022/03/03/ikea-pauses-operations-in-russia-and-belarus">cited the support and security</a> of its workforce in announcing its “pause” in Russia and a donation of 20 million euros for humanitarian assistance for those displaced by the war. After a #BoycottMcDonald’s <a href="https://www.mashed.com/789748/heres-why-boycott-mcdonalds-is-trending-on-twitter/">began trending on Twitter</a> to protest its presence in Russia, the fast-food chain said it was temporarily closing its stores there. And Tesla CEO Elon Musk <a href="https://www.vox.com/recode/22958373/ukraine-russia-starlink-spacex-elon-musk">agreed to provide Ukraine</a> with free satellite internet after a Ukrainian official requested it on Twitter. </p>
<figure class="align-center ">
<img alt="People stand outside a restaurant-looking building with yellow arches spelling an M as they wait to eat McDonalds for the first time." src="https://images.theconversation.com/files/450993/original/file-20220309-13-1co2myw.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/450993/original/file-20220309-13-1co2myw.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=387&fit=crop&dpr=1 600w, https://images.theconversation.com/files/450993/original/file-20220309-13-1co2myw.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=387&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/450993/original/file-20220309-13-1co2myw.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=387&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/450993/original/file-20220309-13-1co2myw.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=486&fit=crop&dpr=1 754w, https://images.theconversation.com/files/450993/original/file-20220309-13-1co2myw.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=486&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/450993/original/file-20220309-13-1co2myw.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=486&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">McDonald’s has been in Russia since it opened its first store in Moscow in 1990.</span>
<span class="attribution"><a class="source" href="https://newsroom.ap.org/detail/RussianMcDonalds1990/bdb02160f3c742118e8ef29ed8288b48/photo?Query=McDonald%27s%20russia&mediaType=photo&sortBy=arrivaldatetime:asc&dateRange=Anytime&totalCount=159&currentItemNo=3">AP Photo</a></span>
</figcaption>
</figure>
<h2>A corporate no-brainer</h2>
<p>But ultimately, the decision whether or not to sever a relationship with a country – even if temporarily – is very different from taking a stand on an anti-trans measure.</p>
<p>Even so, the speed with which U.S. and other Western companies have abandoned Russia is something we’ve never seen in our lifetimes. And it suggests the decision was likely a no-brainer. </p>
<p>For one thing, Russia’s invasion has been met with widespread revulsion in the West. And even before the war, the public’s perception of Russia in Western countries <a href="https://www.pewresearch.org/fact-tank/2020/02/07/russia-and-putin-receive-low-ratings-globally">was very low</a>. </p>
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<p>One post-invasion poll found that 86% of Americans <a href="https://poll.qu.edu/poll-release?releaseid=3837">saw the invasion as unjustified</a> – with broad bipartisan agreement – and another showed that half of the respondents would <a href="https://www.live5news.com/2022/03/07/poll-finds-majority-want-russian-oil-ban-divided-biden/">compare the actions of Vladimir Putin</a> with those of Adolf Hitler. </p>
<p>And governments including those like <a href="https://www.dw.com/en/german-chancellor-olaf-scholz-announces-paradigm-change-in-response-to-ukraine-invasion/a-60932652">Germany</a> that have close commercial ties to Russia have strongly condemned its actions and joined unprecedented sanctions. About 80% of Germans said they approved of their government’s decision to sanction Russia and export weapons to Ukraine – or said it didn’t go far enough.</p>
<p>Ultimately, the Russian market is just not that big for companies in the U.S, such as <a href="https://appleinsider.com/articles/22/03/04/what-apple-risks-by-stopping-all-sales-operations-in-russia">Apple</a> and <a href="https://deadline.com/2022/03/disney-ukraine-theme-parks-disneyplus-1234973007/">Disney</a>. For others, such as McDonald’s, which has been <a href="https://www.bloomberg.com/news/articles/2022-03-08/mcdonald-s-faces-tough-questions-with-large-exposure-to-russia?sref=Hjm5biAW">in Russia since 1990 and has about 850 locations there</a>, days of pressure finally persuaded company officials they had to pull out. </p>
<p>On many hot-button social issues like <a href="https://news.gallup.com/poll/350174/mixed-views-among-americans-transgender-issues.aspx">trans rights</a> and <a href="https://www.pewresearch.org/fact-tank/2021/09/13/key-facts-about-americans-and-guns/">gun control</a>, the general public is split almost right down the middle, meaning taking a stand could alienate a lot of consumers. </p>
<p>But on the issue of Russia’s invasion of Ukraine, many companies likely were more worried about the <a href="https://www.nbcnews.com/business/consumer/mcdonalds-us-brands-pressure-stop-business-russia-rcna18990">risks to their reputation</a> were they to do nothing. With so many other companies pulling out, it likely seemed better to explain to shareholders and customers back home <a href="https://edition.cnn.com/2022/03/02/business/companies-pulling-back-russia-ukraine-war-intl-hnk/index.html">why they’re leaving</a> than <a href="https://www.bbc.com/news/business-60660006">why they’re staying</a>.</p><img src="https://counter.theconversation.com/content/178516/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>The authors do not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Over 300 companies so far have closed stores, reassigned staff or halted sales in Russia in the two weeks since the invasion began.Douglas Schuler, Associate Professor of Business and Public Policy, Rice UniversityLaura Marie Edinger-Schons, Professor of Sustainable Business, University of MannheimLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1755072022-02-16T14:25:20Z2022-02-16T14:25:20ZHow companies should respond to U.S.-China tensions and global supply chain disruptions<figure><img src="https://images.theconversation.com/files/444875/original/file-20220207-19-15vhn9p.jpg?ixlib=rb-1.1.0&rect=0%2C217%2C5000%2C2417&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Tesla vehicles are parked outside of a building during a meeting between Tesla CEO Elon Musk and Chinese Premier Li Keqiang in Beijing in 2019. Tesla is a company with both high reliance on North American technology and Chinese supply chains.</span> <span class="attribution"><span class="source">(AP Photo/Mark Schiefelbein)</span></span></figcaption></figure><p><a href="https://www.nytimes.com/article/us-china-tensions-explained.html">Ongoing tensions between the United States and China</a> have affected many companies around the world, including those in Canada.</p>
<p>Canada’s relationship to China has suffered due to the <a href="https://www.cnbc.com/2021/09/24/huawei-cfo-meng-wanzhou-to-be-released-after-agreement-with-us-in-fraud-case.html">legal saga involving Huawei executive Meng Wanzhou</a>. The COVID-19 pandemic has also made it very clear that a reliance on Chinese suppliers — for companies everywhere — can have disastrous consequences when these <a href="https://hbr.org/2020/09/global-supply-chains-in-a-post-pandemic-world">supply chains are interrupted</a>. </p>
<p>In this challenging and uncertain time, many companies are trying to reorganize their supply chains and reduce dependencies that are vulnerable to <a href="https://www.international.gc.ca/trade-commerce/economist-economiste/analysis-analyse/supply-chain-vulnerability.aspx?lang=eng">political tensions and rising costs</a>. </p>
<p>While the pandemic <a href="https://www.barrons.com/articles/the-lessons-companies-need-to-learn-from-the-supply-chain-crisis-51634574031">has already compelled many companies to become more agile</a> — for example by increasing their number of suppliers — business leaders must now start thinking about the long-term implications of increased uncertainty in the markets since volatility is likely here to stay.</p>
<p>Our ongoing research suggests two factors are most important when making decisions on how to respond to the U.S.-China trade war: location and supply chain dependence, and technology. </p>
<h2>Ending dependence on two fronts</h2>
<p>The first factor deals with how much dependence companies have on Chinese suppliers and customers. China offers a uniquely complete <a href="https://thediplomat.com/2021/11/chinas-supply-chain-bottlenecks-winners-and-losers/">combination of supply chains</a> and <a href="https://www.scmp.com/economy/china-economy/article/3158753/chinas-expanding-middle-class-starting-look-lot-us-its-not">a growing middle class</a> that fuels high demand for almost any good. </p>
<p>According to a United Nations report, China is home to almost every industry and its companies offer almost the <a href="https://unstats.un.org/unsd/publication/seriesm/seriesm_4rev4e.pdf">full range of products and services</a> in each of these industries. </p>
<p>The second factor is technology dependence. In some industries, blazing a trail on the technology frontier is key to success. North America is still the <a href="https://www.visualcapitalist.com/national-innovation-the-most-innovative-countries-by-income/">leading region for many of these technologies</a> (including <a href="https://www.nationmaster.com/nmx/ranking/number-of-patents-in-the-biotechnology-sector">biotechnology</a>, <a href="https://thespoon.tech/europe-the-u-s-israel-which-country-might-be-next-to-approve-cultured-meat/">cultured meat</a> and <a href="https://www.investmentmonitor.ai/ai/ai-index-us-china-artificial-intelligence">artificial intelligence</a>) and it’s increasingly concerned about its intellectual property falling into Chinese hands.</p>
<p>Recent restrictions on Chinese researchers in Canadian universities are one example of <a href="https://www.cbc.ca/news/politics/china-canada-universities-research-waterloo-military-technology-1.5723846">protectionist actions</a> spurred by these concerns.</p>
<p>In the future, companies that deal with North American technologies in cutting-edge areas will probably have to avoid delivering to China or using this technology in collaborations with any Chinese companies.</p>
<h2>Low vs. high Chinese dependence</h2>
<p>Companies with different degrees of dependence on Chinese supply chains and North American technologies are likely to behave very differently. We walk through the four scenarios.</p>
<p>Companies with low reliance on both North American technology and Chinese supply chains tend to relocate their manufacturing facilities to a third, low-wage country, <a href="https://www.gpminstitute.com/publications-resources/Global-Payroll-Magazine/august-september-2016-issue/features-minimum-wage-debate-across-china-india-and-vietnam">such as Vietnam and India,</a> because it’s easy to find alternative production sites and to access technology.</p>
<figure class="align-right zoomable">
<a href="https://images.theconversation.com/files/444814/original/file-20220207-21-uxau20.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="A man in a mask walks by a Samsung sign." src="https://images.theconversation.com/files/444814/original/file-20220207-21-uxau20.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=237&fit=clip" srcset="https://images.theconversation.com/files/444814/original/file-20220207-21-uxau20.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/444814/original/file-20220207-21-uxau20.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/444814/original/file-20220207-21-uxau20.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/444814/original/file-20220207-21-uxau20.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/444814/original/file-20220207-21-uxau20.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/444814/original/file-20220207-21-uxau20.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">A visitor walks near the logo of Samsung Electronics at semiconductor exhibition in Seoul.</span>
<span class="attribution"><span class="source">(AP Photo/Lee Jin-man)</span></span>
</figcaption>
</figure>
<p><a href="https://displaysolutions.samsung.com/main/index">Samsung’s display business</a>, offering digital signage and hospitality displays, is an example. Samsung’s reliance on Chinese supply chains is low because it owns a relatively complete supply chain ranging from upstream activities (inputs to products, such as chip design) to downstream activities (outputs such as products, like smartphones). </p>
<p>In short, Samsung designs, manufactures and markets its own products. The reliance on North American technology is also low because the technology required to produce display devices is not limited to North America. As a result, Samsung has shifted its manufacturing of IT and mobile displays from China to India, <a href="https://www.ft.com/content/4d8285a2-eff0-11e9-ad1e-4367d8281195">avoiding tariffs and higher wages in China</a>. </p>
<figure class="align-right ">
<img alt="A man's hards hold a black smartphone." src="https://images.theconversation.com/files/444815/original/file-20220207-25-u5wgf1.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=237&fit=clip" srcset="https://images.theconversation.com/files/444815/original/file-20220207-25-u5wgf1.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/444815/original/file-20220207-25-u5wgf1.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/444815/original/file-20220207-25-u5wgf1.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/444815/original/file-20220207-25-u5wgf1.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/444815/original/file-20220207-25-u5wgf1.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/444815/original/file-20220207-25-u5wgf1.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">In this 2019 photo, a Google Hardware executive holds a new Pixel 4 phone in Mountainview, Calif.</span>
<span class="attribution"><span class="source">(AP Photo/Jeff Chiu)</span></span>
</figcaption>
</figure>
<p>But companies with high dependence on Chinese supply chains could have a hard time leaving China. Take Google’s Pixel phone as an example. </p>
<p>In 2019, Google decided to relocate the manufacturing of the Pixel phone from China to <a href="https://www.forbes.com/sites/jeanbaptiste/2019/08/28/google-to-move-pixel-smartphone-production-out-of-china-to-an-old-nokia-factory-in-vietnam-report/?sh=1a65267f4f6c">Bac Ninh in northern Vietnam</a> to avoid tariffs into the U.S., an important market for its phones. Two years later, Google reversed the decision and started producing the new smartphone in China due to supply chain problems amid increasing <a href="https://www.gizmochina.com/2021/08/21/google-pixel-6-and-6-pro-will-be-made-in-china-due-to-covid-19-restrictions/">uncertainty from pandemic-related restrictions</a>. </p>
<h2>Relocations to North America</h2>
<p>Companies with a high reliance on North American technology and a relatively low reliance on Chinese supply chains, on the other hand, are likely to relocate manufacturing to North America. </p>
<figure class="align-right zoomable">
<a href="https://images.theconversation.com/files/444820/original/file-20220207-999-fjex6z.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="A man in a mask walks into a building with a TSMC logo on the front of it." src="https://images.theconversation.com/files/444820/original/file-20220207-999-fjex6z.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=237&fit=clip" srcset="https://images.theconversation.com/files/444820/original/file-20220207-999-fjex6z.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=415&fit=crop&dpr=1 600w, https://images.theconversation.com/files/444820/original/file-20220207-999-fjex6z.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=415&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/444820/original/file-20220207-999-fjex6z.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=415&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/444820/original/file-20220207-999-fjex6z.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=522&fit=crop&dpr=1 754w, https://images.theconversation.com/files/444820/original/file-20220207-999-fjex6z.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=522&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/444820/original/file-20220207-999-fjex6z.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=522&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">A person walks into the TSMC headquarters in Hsinchu, Taiwan, in October 2021.</span>
<span class="attribution"><span class="source">(AP Photo/Chiang Ying-ying)</span></span>
</figcaption>
</figure>
<p>For instance, <a href="https://time.com/6102879/semiconductor-chip-shortage-tsmc/">TSMC, one of the world’s leading semiconductor foundries</a>, uses substantial American technologies and equipment, including advanced equipment for <a href="https://aip.scitation.org/doi/10.1063/1.4863412">ultraviolet lithography</a>. Therefore, the Taiwanese company decided to build a new <a href="https://pr.tsmc.com/english/news/2033">advanced chip factory in Arizona</a>, a decision closely connected to its dependence on both U.S. technology and customers. </p>
<p>Companies with high reliance on both North American technology and the Chinese supply chain face the biggest challenges. They have no choice but to keep operating in both countries while navigating political risks and market turbulence. </p>
<p>Tesla is a prime example. While dependent on its research and development in the U.S. to enhance its leading technology position, China’s supply chain benefits Tesla with manufacturing speed, cost and proximity to the Chinese market. That leaves companies like Tesla with no choice but to navigate political tensions and stay present in both markets. </p>
<figure class="align-center ">
<img alt="People warning face masks look at a Tesla." src="https://images.theconversation.com/files/444827/original/file-20220207-15-6gb8s9.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/444827/original/file-20220207-15-6gb8s9.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/444827/original/file-20220207-15-6gb8s9.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/444827/original/file-20220207-15-6gb8s9.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/444827/original/file-20220207-15-6gb8s9.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/444827/original/file-20220207-15-6gb8s9.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/444827/original/file-20220207-15-6gb8s9.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Visitors look at a Tesla vehicle on display at a trade show in Beijing in September 2020.</span>
<span class="attribution"><span class="source">(AP Photo/Mark Schiefelbein)</span></span>
</figcaption>
</figure>
<p>As a result, Tesla has built and expanded a <a href="https://www.reuters.com/business/autos-transportation/tesla-invest-188-mln-expand-shanghai-factory-capacity-beijing-daily-2021-11-26/">factory in Shanghai</a>. Additionally, it has promised to conduct more <a href="https://www.forbes.com/sites/panosmourdoukoutas/2020/01/21/tesla-is-changing-china-will-china-change-tesla/?sh=4e9916ca79f4">research and development activities in China and to recruit local talent for local design</a>.</p>
<p>The COVID-19 pandemic has been another wake-up call for business leaders that should have prompted them to consider the importance of technological progress and supply chain security. While we don’t know how long the pandemic and its restrictions will endure, successful companies think ahead and build resilience and flexibility into their operations.</p><img src="https://counter.theconversation.com/content/175507/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Steven Zhou receives funding from NSFC. </span></em></p><p class="fine-print"><em><span>Abby Jingzi Zhou, Christiaan Röell, Felix Arndt, and Xiaomeng Liu do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Research suggests that two factors are most important when making decisions on how businesses should respond to the U.S.-China trade war: location and supply chain dependence, and technology.Felix Arndt, John F. Wood Chair in Entrepreneurship, University of GuelphAbby Jingzi Zhou, Associate Professor, International Business, University of NottinghamChristiaan Röell, Lecturer in International Business, University of SheffieldSteven Shijin Zhou, Associate Professor, International Business, University of NottinghamXiaomeng Liu, PhD Student, International Business, University of NottinghamLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1740732022-02-04T13:28:21Z2022-02-04T13:28:21ZEconomic migration: the root problem is not smugglers but global inequality<figure><img src="https://images.theconversation.com/files/444122/original/file-20220202-27-1adpxe1.jpg?ixlib=rb-1.1.0&rect=152%2C39%2C4262%2C2461&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">A group of migrants crossing the Channel in a small boat headed in the direction of Dover, Kent.</span> <span class="attribution"><a class="source" href="https://www.alamy.com/a-group-of-people-thought-to-be-migrants-crossing-the-channel-in-a-small-boat-headed-in-the-direction-of-dover-kent-image368232181.html?pv=1&stamp=2&imageid=9CDCC76F-1374-4DA7-BBB3-62ED16187E58&p=309277&n=151&orientation=0&pn=1&searchtype=0&IsFromSearch=1&srch=foo%3Dbar%26st%3D0%26sortby%3D2%26qt%3Dmigrants%2520crossing%2520uk%26qt_raw%3Dmigrants%2520crossing%2520uk%26qn%3D%26lic%3D3%26edrf%3D0%26mr%3D0%26pr%3D0%26aoa%3D1%26creative%3D%26videos%3D%26nu%3D%26ccc%3D%26bespoke%3D%26apalib%3D%26ag%3D0%26hc%3D0%26et%3D0x000000000000000000000%26vp%3D0%26loc%3D0%26ot%3D0%26imgt%3D0%26dtfr%3D20200126%26dtto%3D20240126%26size%3D0xFF%26blackwhite%3D%26cutout%3D%26archive%3D1%26name%3D%26groupid%3D%26pseudoid%3D70857%26userid%3D%26id%3D%26a%3D%26xstx%3D0%26cbstore%3D0%26resultview%3DsortbyPopular%26lightbox%3D%26gname%3D%26gtype%3D%26apalic%3D%26tbar%3D1%26pc%3D%26simid%3D%26cap%3D1%26customgeoip%3DGB%26vd%3D0%26cid%3D%26pe%3D%26so%3D%26lb%3D%26pl%3D0%26plno%3D%26fi%3D0%26langcode%3Den%26upl%3D0%26cufr%3D%26cuto%3D%26howler%3D%26cvrem%3D0%26cvtype%3D0%26cvloc%3D0%26cl%3D0%26upfr%3D%26upto%3D%26primcat%3D%26seccat%3D%26cvcategory%3D*%26restriction%3D%26random%3D%26ispremium%3D1%26flip%3D0%26contributorqt%3D%26plgalleryno%3D%26plpublic%3D0%26viewaspublic%3D0%26isplcurate%3D0%26imageurl%3D%26saveQry%3D%26editorial%3D%26t%3D0%26filters%3D1">Alamy Stock Photo</a></span></figcaption></figure><p>Migration has always been a regular feature of human existence, but these days it is more visible – and politicised – than ever. <a href="https://www.amnesty.org/en/latest/press-release/2016/05/refugees-welcome-index-shows-government-refugee-policies-out-of-touch/">A 2016 survey</a> found the vast majority of people (80%) would welcome refugees, in agreement with the <a href="https://www.unhcr.org/uk/1951-refugee-convention.html">1951 UN refugee convention</a> that those fleeing wars or at serious risk of persecution for reasons of race, religion, nationality or political opinion have the right to cross borders and seek asylum.</p>
<p>However, there is much less consensus about those fleeing poverty to seek a better future. We are all familiar with the <a href="https://blogs.lse.ac.uk/politicsandpolicy/shifting-uk-press-portrayals-of-eu-migrants/">negative narratives</a> about so-called “economic migrants”, “coming to steal our jobs”, “scrounge off the state”, “overburden the system”, or “undermine our culture and values”.</p>
<p>Even those who oppose such misplaced stereotypes may still be uncomfortable with easing border and visa restrictions because of economic concerns. Migrants who attempt to reach other countries by “illegal” means are also often <a href="https://www.bustle.com/p/how-to-argue-asylum-seekers-arent-irresponsible-for-bringing-kids-to-the-us-15913325">branded “irresponsible”</a> for embarking on dangerous journeys with vulnerable children. </p>
<p>Hunting the Essex Lorry Killers, a <a href="https://www.bbc.co.uk/programmes/m0010ldl">recent BBC documentary</a>, looked at the 2019 case of 39 Vietnamese migrants who were found dead in the back of a refrigerated lorry trailer in Essex. The documentary repeated the popular notion <a href="https://www.bbc.co.uk/news/uk-england-essex-55403058">often promoted by politicians</a> that smuggling gangs are responsible for these tragic deaths. And certainly, migration brokers can <a href="https://www.theguardian.com/global-development/2021/dec/25/revealed-the-secret-forced-labour-migration-route-from-vietnam-to-the-uk">make a lot of money</a> by supplying illicit transport services in this highly problematic market.</p>
<figure>
<iframe width="440" height="260" src="https://www.youtube.com/embed/SnTBAHUi4Lg?wmode=transparent&start=1370" frameborder="0" allowfullscreen=""></iframe>
</figure>
<p>But in <a href="https://youtu.be/SnTBAHUi4Lg?t=1370">another documentary</a> interviewing the families of those victims back in Vietnam, one bereaved father gave a very different perspective. He stated that the reason his son was dead was “because of the currency difference. He went there just for that difference.”</p>
<p>In other words, while smugglers do contribute to undocumented migration, the root cause is actually <a href="https://mixedmigration.org/articles/the-free-market-paradox-is-migration-capitalisms-unfinished-business/">global inequality</a>. This inequality is reproduced and perpetuated by many multinational companies within a wider economic system that serves to directly benefit the most wealthy and, indirectly, industrialised countries, at the expense of others.</p>
<h2>Limited options</h2>
<p>As part of my <a href="https://www.isrf.org/fellows-projects/seb-rumsby/">ongoing research</a>, I have interviewed many undocumented Vietnamese migrants who come to the UK to find work and send money back home. Most of them are from rural provinces that have been “left behind” by the rapid development of Vietnam’s major metropolitan hubs. </p>
<p>A common option in Vietnam involves moving to a big city or industrial zone, to work very long, exhausting shifts at a mega-factory assembling electronics for a salary of around <a href="https://www.reuters.com/article/us-samsung-elec-smartphones-vietnam-idUSKBN12E113">£7-£10 per day</a>. This is relatively well paid compared to the <a href="http://www.salaryexplorer.com/salary-survey.php?loc=236&loctype=1">average salary</a> for unskilled workers in Vietnam, which is around £110 a month. </p>
<p>But without a decent education or the right personal connections, it’s impossible to move up the social ladder. Interviewees described this situation as a “dead-end” with no hope for a better future for their children in Vietnam. </p>
<p><a href="https://ipen.org/news/samsung-workers-line%c2%a0unique-report-reveals-lives-vietnamese-women-workers-making-samsung-smart">A report from 2017</a> found workers at a Samsung factory in Vietnam reported extreme fatigue, fainting, dizziness and even miscarriages due to poor working conditions. Samsung has <a href="https://www.business-humanrights.org/en/latest-news/samsung-responds-to-report-on-working-conditions-at-manufacturing-facilities-in-vietnam/">denied these claims</a>, stating that it “takes great care to provide a workplace environment that assures the highest standards of health, safety and welfare”. Following these allegations and an internal audit, Samsung also adopted a “corrective action plan”.</p>
<h2>The bigger picture</h2>
<p>Meanwhile, <a href="http://hanoitimes.vn/samsung-vietnam-generates-us43-billion-in-profits-in-2019-311239.html">Samsung has made huge profits</a> in Vietnam. This happens all across the world: multinational corporations take advantage of cheap labour in poorer countries through <a href="https://journals.sagepub.com/doi/full/10.1177/1024529418809067">global supply chains</a>. A 2011 <a href="https://webzoom.freewebs.com/phsworldhistory/AP%20WH%20Unit%20V/Value_iPad_iPhone.pdf">study of an iPhone factory in China</a>, for example, found that Apple only paid 1.8% of the finished product value to the factory workers, while the company reaped an enormous 58.5% in profits. </p>
<p>In response to <a href="http://sacom.hk/2012/05/30/investigative-report-sweatshops-are-good-for-apple-and-foxconn-but-not-for-workers/">separate allegations</a> raised about working conditions in iPhone factories, <a href="https://www.bbc.co.uk/news/technology-49634866">Apple said</a>: “We care about every worker in our worldwide supply chain … [and] insist that our suppliers treat workers with dignity and respect.” </p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/434127/original/file-20211126-23-3mca5.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="Distribution of value for iPhone." src="https://images.theconversation.com/files/434127/original/file-20211126-23-3mca5.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/434127/original/file-20211126-23-3mca5.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=365&fit=crop&dpr=1 600w, https://images.theconversation.com/files/434127/original/file-20211126-23-3mca5.JPG?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=365&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/434127/original/file-20211126-23-3mca5.JPG?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=365&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/434127/original/file-20211126-23-3mca5.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=458&fit=crop&dpr=1 754w, https://images.theconversation.com/files/434127/original/file-20211126-23-3mca5.JPG?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=458&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/434127/original/file-20211126-23-3mca5.JPG?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=458&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Distribution of value for iPhone, 2010.</span>
<span class="attribution"><a class="source" href="https://www.researchgate.net/figure/Distribution-of-value-for-iPhone-2010_fig1_265187229">Kenneth L. Kraemer, Greg Linden, Jason Dedrick</a></span>
</figcaption>
</figure>
<p>Since the late 1970s, the richest 1% have <a href="https://www.cbpp.org/research/poverty-and-inequality/a-guide-to-statistics-on-historical-trends-in-income-inequality">increased their share of global wealth</a> from 23% to <a href="https://www.visualcapitalist.com/distribution-of-global-wealth-chart/">a staggering 43%</a> – with the <a href="https://inequality.org/facts/global-inequality/">wealthiest four people in the world</a> worth more than the entire country of Vietnam. Multinational corporations represent a continuation of historical exploitation and wealth flow from developing countries to <a href="https://www.livemint.com/Companies/HNZA71LNVNNVXQ1eaIKu6M/British-Raj-siphoned-out-45-trillion-from-India-Utsa-Patna.html">Europe under colonialism</a>, which funded the west’s dramatic rise to prosperity in the first place. </p>
<p>In an unequal world, it makes sense for those in poorer countries with limited options to follow the money to a more developed country, find a low-skilled job, work hard and then send some money back home. This may lead Vietnamese migrants to Japan, Taiwan, South Korea, Germany – or <a href="https://www.dailymail.co.uk/news/article-9290379/Dinghy-lands-Kent-coast-men-sling-life-jackets-dash-pebbles.html">all the way to the UK</a>. Such movement, however, is often forbidden, forcing people to risk potentially <a href="https://e.vnexpress.net/news/news/vietnamese-man-among-27-migrants-drowned-in-channel-4404632.html">deadly border crossings</a> under the radar. </p>
<h2>Economic migration as justice?</h2>
<p>In our interviews, Vietnamese migrants told me they can earn up to 10 times more by working in a UK nail shop than they could hope to earn back in Vietnam. So it’s not surprising that people would want to try their luck abroad. </p>
<figure class="align-center ">
<img alt="Women sit at a nail salon." src="https://images.theconversation.com/files/436958/original/file-20211210-92077-100i51m.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/436958/original/file-20211210-92077-100i51m.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=351&fit=crop&dpr=1 600w, https://images.theconversation.com/files/436958/original/file-20211210-92077-100i51m.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=351&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/436958/original/file-20211210-92077-100i51m.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=351&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/436958/original/file-20211210-92077-100i51m.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=442&fit=crop&dpr=1 754w, https://images.theconversation.com/files/436958/original/file-20211210-92077-100i51m.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=442&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/436958/original/file-20211210-92077-100i51m.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=442&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Vietnamese nail salons have grown rapidly in recent years.</span>
<span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/professional-nail-technicians-performing-manicure-procedure-779132584">BearFotos/Shutterstock</a></span>
</figcaption>
</figure>
<p>In fact, considering the mass exploitation of <a href="https://www.researchgate.net/publication/329278381_Migrant_Workers_for_the_Development_of_Industrial_Zones_in_Bac_Ninh_Province_Vietnam">Vietnamese labour</a> by foreign corporations (which has exacerbated global inequality), it could be argued that economic migration is a matter of justice and that it’s only fair and reasonable that migrants should seek a portion of the extracted labour value that should have stayed in Vietnam.</p>
<p>So if we really want to reduce migration, we must treat it as an inevitable by-product of inequality and address the root causes – instead of simply blaming smugglers or washing our hands of the migrants’ plight.</p><img src="https://counter.theconversation.com/content/174073/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Seb Rumsby receives funding from the Independent Social Research Foundation.</span></em></p>Perhaps the best way to understand the reasons why people embark on these journeys is to put yourself in their shoes.Seb Rumsby, Postdoctoral Research Fellow in Politics and International Studies, University of WarwickLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1742612022-01-04T19:00:56Z2022-01-04T19:00:56ZFrom Facebook to Volkswagen and Samsung: why national stereotypes matter during corporate crises<p>At the end of 2021, Facebook experienced the perfect storm.</p>
<p>On October 4, the company’s services experienced an outage that <a href="https://www.nytimes.com/2021/10/04/technology/facebook-down.html">lasted six hours</a> during which 2.9 billion users were not able to access Facebook, Instagram, WhatsApp, and Oculus due to a <a href="https://www.bloomberg.com/news/articles/2021-10-04/explaining-the-protocol-failure-that-triggered-facebook-s-outage">technical error</a>. The <a href="https://www.snopes.com/news/2021/10/04/facebook-ad-revenue/">estimated loss</a> to the global economy was estimated at almost US$ 1 billion, or US$ 150 million per hour.</p>
<p>At the same time, another crisis was rapidly picking up pace. On October 1, the Wall Street Journal had published <a href="https://www.wsj.com/articles/the-facebook-files-11631713039">“The Facebook Files”</a>, a collection of leaked documents that provide rare insight into the inner workings of the organization and the findings of its internal research.</p>
<p>The documents suggest that Facebook is aware of the ill effects its services have, but does little to fix them. Facebook’s own <a href="https://www.theverge.com/2021/9/29/22701445/facebook-instagram-mental-health-research-pdfs-documents">internal research</a> found that Instagram harms teens’ mental health and contributes to eating disorders and suicidal thoughts. On October 5, just one day after the global outage, Frances Haugen, the whistle-blower behind the leaked documents, appeared before U.S. congress and stated that Facebook prioritises <a href="https://www.bbc.com/news/technology-58784615">growth over safety</a>.</p>
<hr>
<p><strong>Lire cet article en français</strong>: <a href="https://theconversation.com/facebook-volkswagen-samsung-comment-les-stereotypes-nationaux-influent-sur-le-pardon-accorde-aux-entreprises-fautives-170486">Facebook, Volkswagen, Samsung… Comment les stéréotypes nationaux influent sur le pardon accordé aux entreprises fautives</a></p>
<hr>
<p>Two crises at a time, calling Facebook’s ability and morality into question. But will these corporate crises hurt the company long-term? And if so, how much and in what ways?</p>
<h2>The aftermath of corporate crises</h2>
<p>Corporate crises can result in severe <a href="https://link.springer.com/article/10.1057%2Fbm.2015.38">retaliation</a> against the companies at fault.</p>
<p>Consumers may spread negative information about the company on social media, shun the brand, or boycott the company’s products. Whether consumers will seek revenge depends in part on whether the crisis calls a company’s ability or morality into question.</p>
<p>In 2016, Samsung suspended sales of the Galaxy Note 7 and announced a global recall after it was found that a manufacturing defect in the phones’ batteries had caused some of them to generate excessive heat, resulting in <a href="https://www.theverge.com/2016/9/2/12767670/samsung-galaxy-note-7-recall-fire-risk">fires and explosions</a>.</p>
<p>The scandal affected consumers’ perceptions about the safety of their smartphones and caused the company to lose billions in value in the stock market. But the problem with Samsung Galaxy Note 7 <a href="https://www.washingtonpost.com/business/how-samsung-moved-beyond-its-exploding-phones/2018/02/23/5675632c-182f-11e8-b681-2d4d462a1921_story.html">did not largely affect customer trust</a> the brand and nearly <a href="https://www.reportlinker.com/insight/samsung-galaxy-s8-trust.html">nine out of 10 existing customers</a> said they would consider a Samsung phone for their next purchase just a few months after the scandal. This was partly because it was seen as a crisis of ability rather than morality.</p>
<p>By contrast, when Volkswagen was caught cheating on emissions testing, making its diesel cars appear up to 40 times less polluting than they actually were, the German company was not just hit by <a href="https://hbr.org/2016/09/what-100000-tweets-about-the-volkswagen-scandal-tell-us-about-angry-customers">social media firestorms</a> and long-running boycott campaigns, but also recorded its <a href="https://www.theguardian.com/business/2016/may/31/vw-volkswagen-profits-down-20-diesel-emissions-scandal">first annual loss</a> in more than 20 years. Years later, Volkswagen <a href="https://fortune.com/2020/10/06/volkswagen-vw-emissions-scandal-damages/">emissions damages</a> are still rolling in. Because it relates to a perceived ethical lapse, this crisis was seen as a moral failing.</p>
<p>But another factor seems influence how the public reacts to a corporate crisis: a company’s country of origin. During “dieselgate”, for example, the words “German” and “Germany” were among the <a href="https://hbr.org/2016/09/what-100000-tweets-about-the-volkswagen-scandal-tell-us-about-angry-customers">five most frequently used words</a> relating to the scandal on Twitter. As these searches make clear, Volkswagen is closely associated with Germany. South Korean Samsung, on the other hand, is frequently <a href="https://doi.org/10.1016/j.jbusres.2017.05.014">misclassified as Japanese</a>.</p>
<p>Our <a href="https://doi.org/10.1177/1069031X20983806">new research</a> adds to existing evidence which shows that where a company comes from can influence how consumers react to corporate crises.</p>
<h2>Warm and cold countries</h2>
<p>The basic premise is that a company’s country of origin can evoke certain stereotypes. That is, the associations of brands with countries, for example, Facebook and the United States or Volkswagen and Germany, activate national stereotypes.</p>
<p>Previous research has shown that consumers stereotype countries in terms of two dimensions: <a href="https://www.emerald.com/insight/content/doi/10.1108/02651330810851881/full/html">warmth and competence</a>. Countries consumers perceive as friendly, cooperative, and trustworthy are considered “warm”, while “cold” countries are viewed as having antagonistic, competitive intentions. Meanwhile, countries consumers perceive as powerful and capable of acting on their intentions are considered <a href="https://doi.org/10.1108/02651330810851881">“competent”</a> or “incompetent,” if they are not. Consumers extend the warmth and competence they associate with a particular country to the companies that come from that country.</p>
<p>This “country-company” <a href="https://doi.org/10.1037/0022-3514.35.4.250">halo effect</a> is something we regularly see in non-crisis settings, in which we blindly believe in the superior quality of French wine, Swiss chocolate, and German cars, simply based on their origins.</p>
<p>Using several experiments, our research tested the presumed psychological process of this effect in times of crisis. We found that consumers’ negative emotional responses (such as contempt, anger, and disgust) and their intention to retaliate against the wrong-doing company (for example, through a boycott) depend on their <a href="https://doi.org/10.1016/j.obhdp.2008.06.001">perception of corporate greed</a>. Put simply, public outrage is likely to form only if consumers believe that the damage caused is due to the company’s pursuit of profits.</p>
<p>Country stereotypes matter in this psychological process because consumers may rely on them to make inferences about the company’s underlying intentions. We found that perceived country warmth can lead consumers to discount negative information about any potential greedy intentions, which in turn prevents negative emotions and retaliation.</p>
<p>But the buffering effect of country warmth is limited to corporate ability crises. Negative information that calls the company’s adherence to moral norms into question is <a href="https://doi.org/10.1016/j.jbusres.2013.12.007">harder to discount</a>, no matter the country stereotype.</p>
<p>Our findings indicate that a warm country-of-origin acts as an “insurance policy” for companies from that country against the unfavourable consequences of a crisis. Companies should be aware of this effect and have a clear understanding of the extent to which consumers associate their brand with a specific country, and the extent to which they perceive that country as warm, friendly, and trustworthy.</p>
<p>The public condemns companies more when they violate ethical standards than when their professional competence is at issue. If consumers perceive a crisis to be morally concerning, the buffering effect of country warmth vanishes and can no prevent the company from consumers’ potential retaliatory actions, like negative word-of-mouth or boycotting.</p>
<p>So, what could this mean for Facebook in 2022? In late 2021, Facebook <a href="https://www.nytimes.com/2021/10/29/business/dealbook/facebook-meta-rebranding.html">rebranded itself as Meta</a>, reflecting the company’s reorientation toward virtual reality. These rebranding efforts may also help to leave behind the bad press surrounding Facebook. Whether Meta really starts with a clean slate or carries the baggage of the past remains to be seen. Certainly, the public will keep a close eye on it.</p><img src="https://counter.theconversation.com/content/174261/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Les auteurs ne travaillent pas, ne conseillent pas, ne possèdent pas de parts, ne reçoivent pas de fonds d'une organisation qui pourrait tirer profit de cet article, et n'ont déclaré aucune autre affiliation que leur organisme de recherche.</span></em></p>A company’s country of origin can affect how consumers react to a scandal.Timo Mandler, Associate Professor of Marketing & International Business, TBS EducationCamilla Barbarossa, Professeure en marketing RSE, TBS EducationLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1734192021-12-12T19:09:02Z2021-12-12T19:09:02ZWhy wearable fitness trackers aren’t as useless as some make them out to be<figure><img src="https://images.theconversation.com/files/436841/original/file-20211210-172173-80w7n7.jpeg?ixlib=rb-1.1.0&rect=77%2C44%2C7238%2C4858&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><span class="source">Shutterstock</span></span></figcaption></figure><p>Wearable fitness trackers will be on many Christmas shopping lists this year, with a vast range of devices (and an ever-increasing number of features) hitting the market just in time for the festive season. </p>
<p>But what does the latest research say about how effective they are? </p>
<h2>Fitness trackers are trendy</h2>
<p>Currently, <a href="https://www2.deloitte.com/au/en/pages/technology-media-and-telecommunications/articles/digitalconsumertrends.html">about one in five</a> Australians own one of these wearables, and about a quarter use a mobile app or website to monitor their activity levels and health. And sales are <a href="https://www.mordorintelligence.com/industry-reports/australia-wearables-market">predicted to grow</a> over the next five years. </p>
<p>The landscape of the market is fast changing. For years, Fitbit and Garmin were the market leaders. But Australians now <a href="https://www.statista.com/forecasts/1187946/ehealth-tracker-smart-watch-usage-by-brand-in-australia">favour</a> Apple watches (used by 43% of people owning a wearable tracker) over Fitbit (35%) and Samsung watches (16%) over Garmin (13%).</p>
<p>So far fitness trackers have mostly been taken up by younger people: about one in four Australians aged 20–40 report using one, compared to just one in ten people aged <a href="https://www.statista.com/statistics/662856/australia-tracking-health-via-apps-bands-or-smartwatches-by-gender/">60 or older</a>.</p>
<p>However, manufacturers are on a mission to change this, by adding features that allow users to monitor not just their fitness activity, but several other aspect of their health.</p>
<p>For instance, recent wearable models from all the leading manufacturers claim to measure a host of medical metrics, such as blood pressure, body fat levels, the amount of oxygen in your blood, your heart activity, and even identify when you’ve taken a fall (with a feature that lets you call for help). </p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/do-we-really-need-to-walk-10-000-steps-a-day-153765">Do we really need to walk 10,000 steps a day?</a>
</strong>
</em>
</p>
<hr>
<h2>Wearables get the basics right</h2>
<p>Firstly, a multitude of <a href="https://mhealth.jmir.org/2020/9/e18694/">studies</a> have looked at the accuracy of wearable fitness trackers for measurements related to physical activity, including step counts, heart rate and number of calories burned. They show step counts are generally highly accurate, while heart rate and calories burned are reasonably accurate. </p>
<p>When study participants wear two different activity trackers at the same time, the numbers of steps, minutes of activity and calories burned aren’t exactly the same, but they are <a href="https://ijbnpa.biomedcentral.com/articles/10.1186/s12966-015-0314-1">correlated</a>. That is, when one goes up so does the other, and vice versa. This suggests they are generally capturing the same information, albeit with slightly different sensitivity.</p>
<p>Evidence for sleep tracking is a little patchier. Wearables are pretty good at detecting bed time, wake time and overall sleep duration. But estimates for more technical metrics such as the “phases” of sleep – such as REM sleep – don’t marry with medical-grade measurements taken by <a href="https://www.jmir.org/2019/11/e16273/?utm_source=dlvr.it&utm_medium=facebook">polysomnography</a>.</p>
<h2>Sometimes wearables go beyond the basics</h2>
<p>In a 2019 Apple-sponsored study <a href="https://pubmed.ncbi.nlm.nih.gov/31722151/">reported in the</a> New England Medical Journal, 419,297 participants without known atrial fibrillation wore an Apple Watch. During the study, 2,161 of them received an irregular pulse notification, of which 84% were subsequently confirmed to have atrial fibrillation (an irregular and rapid heart beat). </p>
<p>This is a serious medical condition that requires treatment to prevent stroke.
The ability to alert users of a potential undiagnosed cardiac condition seems highly beneficial. Although, <a href="https://www.nejm.org/doi/full/10.1056/NEJMoa1901183#article_letters">others</a> have cautioned the Apple Watch can also miss cases of undiagnosed atrial fibrillation – which emphasises the importance of <em>never</em> relying on wearable metrics for medical purposes.</p>
<p><a href="https://www.ahajournals.org/doi/full/10.1161/CIRCEP.121.010063">Another study</a> published in September reaffirmed the Apple watch’s electrocardiogram feature can detect serious cardiac irregularities. A similar <a href="https://pubmed.ncbi.nlm.nih.gov/33865810/">study</a> is currently underway to evaluate Fitbit’s electrocardiogram feature, but results aren’t out yet.</p>
<h2>Building a more advanced tracker</h2>
<p>In terms of detecting falls (which would be very useful for older individuals), scientists are developing wrist-worn devices that can accurately do this using <a href="https://ieeexplore.ieee.org/document/7723508">accelerometer technology</a>, which is the same underlying technology already used by wearables. So the technology is there, but at this point it’s unclear whether the promising lab results will translate to accuracy in commercial wearables.</p>
<p>Meanwhile, the newest Samsung watch claims to measure <a href="https://www.samsung.com/au/support/mobile-devices/measure-bp-on-samsung-watch/">blood pressure</a> and <a href="https://www.samsung.com/levant/support/mobile-devices/measure-your-body-composition-with-the-galaxy-watch4-series/">body composition</a> (such as fat mass, muscle mass and bone mass). Body composition is measured using a method called bioelectric impedance analysis. </p>
<p>When the user touches the watch with their opposite hand, it passes a weak electrical signal through the body and back to the watch. The body composition is then calculated using algorithms and the manually entered body weight.</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/436842/original/file-20211210-25-famzi8.jpeg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="Calipers" src="https://images.theconversation.com/files/436842/original/file-20211210-25-famzi8.jpeg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/436842/original/file-20211210-25-famzi8.jpeg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/436842/original/file-20211210-25-famzi8.jpeg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/436842/original/file-20211210-25-famzi8.jpeg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/436842/original/file-20211210-25-famzi8.jpeg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/436842/original/file-20211210-25-famzi8.jpeg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/436842/original/file-20211210-25-famzi8.jpeg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Calipers can be used to try to measure body fat percentage.</span>
<span class="attribution"><span class="source">Shutterstock</span></span>
</figcaption>
</figure>
<p>At this stage, there’s no data in the scientific literature to support the accuracy of these measurements, so we’d recommend taking them with a pinch of salt. Then again, only a few years ago the same criticism was made of electrocardiogram measurements from wearables – and these have subsequently shown to have merit. </p>
<h2>Evidence says your effort will pay off</h2>
<p>So that’s the run down on accuracy, but do fitness trackers make a difference in people’s lives?</p>
<p>Hundreds of studies have used wearable activity trackers to try to increase physical activity in various general and patient populations. Meta-analyses (which involve combining results of multiple studies) suggest the devices are effective in helping people become more <a href="https://pubmed.ncbi.nlm.nih.gov/30977740/">physically active</a> and <a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8597870/">lose weight</a>. </p>
<p>A <a href="https://ijbnpa.biomedcentral.com/articles/10.1186/s12966-020-00955-2">meta-analysis</a> of 35 studies in various chronic disease populations suggested users added around 2,100 additional steps per day after they started using a wearable activity tracker. Other meta-analyses have suggested weight loss in the order of <a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7589007/">1 to 1.5 kilograms</a>, on average, over the duration of the studies (with the duration varying between studies). </p>
<p>And <a href="https://ijbnpa.biomedcentral.com/articles/10.1186/s12966-020-01020-8">studies</a> that look specifically at step-tracking over long periods suggest the benefits gained are still present (although smaller) up to four years after the device was first worn.</p>
<p>Accuracy and effectiveness aside, wearable users typically report being <a href="https://pubmed.ncbi.nlm.nih.gov/29141607/">satisfied with their devices</a>. So if you happen to get one in your Christmas stocking this year, keep in mind it could help with those New Year’s fitness resolutions. </p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/health-apps-track-vital-health-stats-for-millions-of-people-but-doctors-arent-using-the-data-heres-how-it-could-reduce-costs-and-patient-outcomes-162575">Health apps track vital health stats for millions of people, but doctors aren't using the data – here's how it could reduce costs and patient outcomes</a>
</strong>
</em>
</p>
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<img src="https://counter.theconversation.com/content/173419/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Carol Maher receives funding from the National Health and Medical Research Council, the Medical Research Future Fund, the National Heart Foundation, the South Australian Department for Innovation and Skills, the South Australian Department for Education, Healthway and Hunter New England Local Health District.</span></em></p><p class="fine-print"><em><span>Ben Singh does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>About one in five Aussies currently own a wearable fitness tracker of some kind. Yet many people doubt their effectiveness. Let’s see what the research suggests.Ben Singh, Research fellow, University of South AustraliaCarol Maher, Professor, Medical Research Future Fund Emerging Leader, University of South AustraliaLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1586332021-04-08T20:10:56Z2021-04-08T20:10:56ZPhone wet and won’t turn on? Here’s how to deal with water damage (hint: soaking it in rice won’t work)<figure><img src="https://images.theconversation.com/files/393956/original/file-20210408-15-1wapm8g.jpg?ixlib=rb-1.1.0&rect=302%2C256%2C4873%2C3189&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><span class="source">Shutterstock</span></span></figcaption></figure><p>If you’ve ever gotten your phone wet in the rain, dropped it in water or spilt liquid over it, you’re not alone. One study suggests <a href="http://s3.amazonaws.com/zagg-iMktg/images/pr-media/2014/smartphone-and-tablet-damage-study.pdf">25% of smartphone users</a> have damaged their smartphone with water or some other kind of liquid.</p>
<p>Liquid penetrating a smartphone can affect the device in several ways. It could lead to:</p>
<ul>
<li>blurry photos, if moisture gets trapped in the camera lens</li>
<li>muffled audio, or no audio</li>
<li>liquid droplets under the screen</li>
<li>an inability to charge</li>
<li>the rusting of internal parts, or</li>
<li>a total end to all functionality.</li>
</ul>
<p>While new phones are advertised as “water resistant”, this doesn’t mean they are waterproof, or totally immune to water. Water resistance just implies the device can handle <em>some</em> exposure to water before substantial damage occurs.</p>
<p>Samsung Australia has long-defended itself against <a href="https://www.channelnews.com.au/samsung-still-fighting-claims-they-misled-consumers-about-water-resistance/">claims</a> it misrepresents the water resistance of its smartphones. </p>
<p>In 2019, the Australian Competition and Consumer Commission (ACCC) took Samsung to Federal Court, alleging false and misleading advertisements had led customers to believe their <a href="https://www.accc.gov.au/system/files/ACCC%20v%20Samsung%20Electronics%20Australia%20Pty%20Ltd_Concise%20Statement.pdf">Galaxy phones</a> would be suitable for:</p>
<blockquote>
<p>use in, or exposure to, all types of water (including, for example, oceans and swimming pools). </p>
</blockquote>
<p>Samsung Australia subsequently <a href="https://www.accc.gov.au/media-release/samsung-in-court-for-misleading-phone-water-resistance-advertisements">denied warranty claims</a> from customers for damage caused to phones by use in, or exposure to, liquid.</p>
<p>Similarly, last year Apple was <a href="https://www.reuters.com/article/us-italy-apple-antitrust/italys-antitrust-fines-apple-10-million-euros-for-misleading-commercial-practices-idUKKBN28A0OH?edition-redirect=uk">fined €10 million</a> (about A$15.5 million) by Italy’s antitrust authority for misleading claims about the water resistance of its phones, and for not covering liquid damage under warranty, despite these claims.</p>
<h2>How resistant is your phone?</h2>
<p>The water resistance of phones is rated by an “Ingress Protection” code, commonly called an IP rating. Simply, an electrical device’s IP rating refers to its effectiveness against intrusions from solids and liquids. </p>
<p>The rating includes two numbers. The first demonstrates protection against solids such as dust, while the second indicates resistance to liquids, specifically water.</p>
<figure class="align-right ">
<img alt="" src="https://images.theconversation.com/files/393955/original/file-20210408-21-16ip23.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=237&fit=clip" srcset="https://images.theconversation.com/files/393955/original/file-20210408-21-16ip23.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=1113&fit=crop&dpr=1 600w, https://images.theconversation.com/files/393955/original/file-20210408-21-16ip23.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=1113&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/393955/original/file-20210408-21-16ip23.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=1113&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/393955/original/file-20210408-21-16ip23.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=1399&fit=crop&dpr=1 754w, https://images.theconversation.com/files/393955/original/file-20210408-21-16ip23.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=1399&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/393955/original/file-20210408-21-16ip23.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=1399&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Here are the various Ingress Protection ratings. The numbering changes based on the level of protection.</span>
<span class="attribution"><span class="source">Element Materials Technology</span></span>
</figcaption>
</figure>
<p>A phone that has a rating of <a href="https://www.cnet.com/how-to/how-waterproof-is-your-android-phone-or-iphone-heres-what-ip68-and-ip67-ratings-mean/">IP68</a> has a solid object protection of 6 (full protection from dust, dirt and sand) and a liquid protection of 8 (protected from immersion in water to a depth of more than one metre). </p>
<p>Although, for the latter, manufacturers are responsible for defining the exact depth and time.</p>
<p>The popular <a href="https://support.apple.com/en-au/HT207043">iPhone 12</a> and <a href="https://www.samsung.com/au/smartphones/galaxy-s21-ultra-5g/models/">Samsung Galaxy S21</a> phones both have a rating of IP68. However, regarding exposure to water, the iPhone 12 has a permissible immersion depth of a maximum of 6m for 30 minutes, whereas the Galaxy 21’s immersion limit is up to 1.5m, also for 30 minutes. </p>
<p>While IP ratings indicate the water-repellent nature of phones, taking most phones for a swim will land you in deep trouble. The salt content in oceans and swimming pools can corrode your device and cost you a hefty replacement. </p>
<p>Moreover, phone manufacturers carry out their IP testing in fresh water and Apple <a href="https://support.apple.com/en-us/HT207043">recommends</a> devices not be submerged in liquids of any kind. </p>
<p>Luckily, water resistant phones are generally able to survive smaller liquid volumes, such as from a glass tipping over.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/screwed-over-how-apple-and-others-are-making-it-impossible-to-get-a-cheap-and-easy-phone-repair-156871">Screwed over: how Apple and others are making it impossible to get a cheap and easy phone repair</a>
</strong>
</em>
</p>
<hr>
<h2>Checking for liquid damage</h2>
<p>Exposure to water is something manufacturers have in mind when designing phones. Most <a href="https://support.apple.com/en-au/HT204104">Apple</a> and <a href="https://www.samsung.com/us/support/troubleshooting/TSG01001077/">Samsung</a> phones come with a liquid contact/damage indicator strip located inside the SIM card tray. </p>
<p>This is used to check for liquid damage that may be causing a device to malfunction. An indicator strip that comes in contact with liquid loses its usual colour and becomes discoloured and smudgy.</p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/393963/original/file-20210408-22-1lhbmbs.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/393963/original/file-20210408-22-1lhbmbs.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=496&fit=crop&dpr=1 600w, https://images.theconversation.com/files/393963/original/file-20210408-22-1lhbmbs.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=496&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/393963/original/file-20210408-22-1lhbmbs.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=496&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/393963/original/file-20210408-22-1lhbmbs.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=623&fit=crop&dpr=1 754w, https://images.theconversation.com/files/393963/original/file-20210408-22-1lhbmbs.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=623&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/393963/original/file-20210408-22-1lhbmbs.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=623&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Samsung and Apple phones have Liquid Contact/Damage Indicators.</span>
<span class="attribution"><span class="source">Samsung/Apple</span></span>
</figcaption>
</figure>
<p>A discoloured strip usually renders your phone ineligible for a standard manufacturer warranty.</p>
<p>If you have any of the more recent smartphones from <a href="https://support.apple.com/en-au/HT210424">Apple</a> or <a href="https://www.samsung.com/nz/support/mobile-devices/what-can-i-do-to-remove-the-moisture-detected-notification/">Samsung</a>, then your device will be able to detect liquid or moisture in its charging port and will warn you with an alert. This notification only goes away once the port is dry.</p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/393949/original/file-20210408-13-1fguj00.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/393949/original/file-20210408-13-1fguj00.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=454&fit=crop&dpr=1 600w, https://images.theconversation.com/files/393949/original/file-20210408-13-1fguj00.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=454&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/393949/original/file-20210408-13-1fguj00.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=454&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/393949/original/file-20210408-13-1fguj00.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=571&fit=crop&dpr=1 754w, https://images.theconversation.com/files/393949/original/file-20210408-13-1fguj00.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=571&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/393949/original/file-20210408-13-1fguj00.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=571&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">New generation Samsung and Apple phones have a moisture/liquid alert notification.</span>
<span class="attribution"><span class="source">Samsung/Apple</span></span>
</figcaption>
</figure>
<p>But what should you do if this dreadful pop-up presents itself?</p>
<h2>Fixing a water-logged phone</h2>
<p>Firstly, do not put your phone in a container of rice. It’s a <a href="https://smartphones.gadgethacks.com/how-to/myth-debunked-uncooked-rice-isnt-best-way-save-your-water-damaged-phone-0154799/">myth</a> that rice helps in drying out your phone. Instead, follow these steps:</p>
<ol>
<li><p>Turn off the device immediately and don’t press any buttons.</p></li>
<li><p>If your phone is water resistant and you’ve spilt or submerged it in a liquid other than water, both <a href="https://support.apple.com/en-us/HT207043">Apple</a> and <a href="https://www.samsung.com/us/support/troubleshooting/TSG01001449/">Samsung</a> recommend rinsing it off by submerging it in still tap water (but not under a running tap, which could cause damage).</p></li>
<li><p>Wipe the phone dry with paper towels or a soft cloth.</p></li>
<li><p>Gently shake the device to remove water from the charging ports,
but avoid vigorous shaking as this could further spread the liquid inside.</p></li>
<li><p>Remove the SIM card.</p></li>
<li><p>Use a compressed aerosol air duster to blow the water out if you have one. Avoid using a hot blow dryer as the heat can wreck the rubber seals and damage the screen.</p></li>
<li><p>Dry out the phone (and especially the ports) in front of a fan.</p></li>
<li><p>Leave your phone in an airtight container full of <a href="https://www.silica-gel.it/en/blog/save-the-phone-from-the-water--n5">silica gel</a> packets (those small packets you get inside new shoes and bags), or another drying agent. These help absorb the moisture.</p></li>
<li><p>Do not charge the phone until you are certain it’s dry. Charging a device with liquid still inside it, or in the ports, can cause further damage. Apple suggests waiting <a href="https://support.apple.com/en-us/HT207043">at least five hours</a> once a phone appears dry before charging it (or until the alert disappears). </p></li>
</ol>
<p>If the above steps don’t help and you’re still stuck with a seemingly dead device, don’t try opening the phone yourself. You’re better off taking it to a professional.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/upgrade-rage-why-you-may-have-to-buy-a-new-device-whether-you-want-to-or-not-153105">Upgrade rage: why you may have to buy a new device whether you want to or not</a>
</strong>
</em>
</p>
<hr>
<img src="https://counter.theconversation.com/content/158633/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Ritesh Chugh does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Avoid using a hot blow dryer too, as these can wreck the rubber seals and damage the screen.Ritesh Chugh, Senior Lecturer – Information Systems and Analysis, CQUniversity AustraliaLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1568712021-03-11T18:02:52Z2021-03-11T18:02:52ZScrewed over: how Apple and others are making it impossible to get a cheap and easy phone repair<figure><img src="https://images.theconversation.com/files/388980/original/file-20210311-18-1or88po.jpg?ixlib=rb-1.1.0&rect=26%2C44%2C5964%2C3952&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><span class="source">Shutterstock</span></span></figcaption></figure><p>If Apple and other tech companies have their way, it will only become harder to have our phones and other devices repaired by third-party businesses.</p>
<p>Smartphones and many other tech devices are increasingly being designed in ways that make it challenging to repair or replace individual components.</p>
<p>This might involve soldering the processor and flash memory to the motherboard, gluing components together unnecessarily, or using non-standard <a href="https://www.ifixit.com/News/14279/apples-diabolical-plan-to-screw-your-iphone">pentalobe screws</a> which make replacements problematic.</p>
<p>Many submissions to an Australian “right to repair” <a href="https://www.pc.gov.au/inquiries/current/repair/submissions#initial">inquiry</a> have called on tech manufacturers to provide a fair and competitive market for repairs, and produce products that are easily repairable. </p>
<p>The <a href="https://www.pc.gov.au/inquiries/current/repair/issues/repair-issues.pdf">right to repair</a> refers to consumers’ ability to have their products repaired at a competitive price. This includes being able to choose a repairer, rather than being forced by default to use the device manufacturer’s services. </p>
<p>But it seems Apple doesn’t want its customers to fix their <a href="https://www.vice.com/en/article/evmeya/apple-iphone-right-to-repair-california">iPhones</a> or <a href="https://www.inputmag.com/culture/apples-repair-policies-are-utterly-shameful-and-shouldnt-be-allowed-e-waste-recycling-macbooks-t2">Macbooks</a> themselves. The company has <a href="https://www.vice.com/en/article/nz85y7/apple-is-lobbying-against-your-right-to-repair-iphones-new-york-state-records-confirm">lobbied against</a> the right to repair in the United States and has <a href="https://www.npr.org/2020/11/18/936268845/apple-agrees-to-pay-113-million-to-settle-batterygate-case-over-iphone-slowdowns">been accused of deliberately slowing down</a> iPhones with older batteries.</p>
<p><a href="https://www.pewtrusts.org/en/research-and-analysis/blogs/stateline/2019/10/16/tech-giants-fight-digital-right-to-repair-bills">Opposition</a> against the right to repair from tech companies is to be expected. Cornering consumers into using their service centres increases their revenue and extends their market domination.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/apple-google-and-fortnites-stoush-is-a-classic-case-of-how-far-big-tech-will-go-to-retain-power-144728">Apple, Google and Fortnite's stoush is a classic case of how far big tech will go to retain power</a>
</strong>
</em>
</p>
<hr>
<p>In its defence, Apple has said <a href="https://time.com/4828099/farmers-and-apple-fight-over-the-toolbox/">third-party repairers</a> could use lower quality parts and also make devices vulnerable to hackers. </p>
<p>It also defended its <a href="https://venturebeat.com/2019/08/14/apple-defends-iphone-unauthorized-battery-warning-as-a-safety-feature/">battery warning indication</a> as a “safety” feature, wherein it started to alert users if their phone’s replacement battery hadn’t come from a certified Apple repairer. </p>
<p>In the US, Apple’s <a href="https://support.apple.com/irp-program">independent repair provider program</a> grants certain providers access to the parts and resources needed to fix its devices. Independent repair shops in <a href="https://www.apple.com/newsroom/2020/07/apple-expands-iphone-repair-services-to-hundreds-of-new-locations-across-the-us/">32 countries</a> can now apply, but the scheme has yet to extend outside the US.</p>
<h2>Impact on users</h2>
<p>With the iPhone 12 — the latest iPhone offering — Apple has <a href="https://www.ifixit.com/News/45921/is-this-the-end-of-the-repairable-iphone">made it even harder</a> for third-party repairers to fix the device, thereby increasing users’ reliance on its own services. </p>
<p>Apple has hiked its <a href="https://support.apple.com/en-au/iphone/repair/service/screen-replacement">repair charges</a> for iPhone 12 by more than 40%, compared with the iPhone 11. It is <a href="https://support.apple.com/en-au/iphone/repair/service/screen-replacement">charging</a> more than A$359 to fix an iPhone 12 screen outside of warranty and A$109 to replace the battery. </p>
<p>Historically, third-party repairers have been a cheaper option. But using a third-party repairer for an iPhone 12 could render some phone features, such as the camera, <a href="https://www.theverge.com/2020/10/30/21542242/apple-iphone-12-third-party-repairs-ifixit-camera-module-replacement">almost inoperable</a>.</p>
<p>According to reports, fixing the iPhone 12’s camera requires <a href="https://9to5mac.com/2020/10/30/iphone-12-camera-repair/">Apple’s proprietary</a> system configuration app, available only to the company’s own authorised technicians. </p>
<p>It’s not just Apple, either. <a href="https://www.techradar.com/au/news/samsungs-galaxy-s20-ultra-is-unsurprisingly-difficult-to-repair">Samsung’s</a> flagship phones are also quite tricky for third-party repairers to fix.</p>
<h2>Impact on environment</h2>
<p>When certain parts for repairs aren’t available, manufacturers will produce new phones instead, consuming <a href="https://www.envirotech-online.com/news/environmental-laboratory/7/breaking-news/how-do-smartphones-affect-the-environment/48339">more energy and resources</a>. In fact, manufacturing one smartphone <a href="https://www-sciencedirect-com.ezproxy.cqu.edu.au/science/article/pii/S095965261733233X">consumes</a> as much energy as using it for ten years.</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/388981/original/file-20210311-17-71ym2b.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="Pile of smashed, discarded smartphones" src="https://images.theconversation.com/files/388981/original/file-20210311-17-71ym2b.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/388981/original/file-20210311-17-71ym2b.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/388981/original/file-20210311-17-71ym2b.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/388981/original/file-20210311-17-71ym2b.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/388981/original/file-20210311-17-71ym2b.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/388981/original/file-20210311-17-71ym2b.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/388981/original/file-20210311-17-71ym2b.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">With smartphones and computers becoming harder and more expensive to repair, consumers may be more likely to dispose of their device when something goes wrong.</span>
<span class="attribution"><span class="source">Shutterstock</span></span>
</figcaption>
</figure>
<p>As smartphones become harder to repair, electronic waste will grow. Apple and Samsung both cited environmental benefits when they announced they would no longer ship <a href="https://theconversation.com/apples-iphone-12-comes-without-a-charger-a-smart-waste-reduction-move-or-clever-cash-grab-148189">chargers</a> with their phones. </p>
<p>Yet, they’ve turned a blind eye to the environmental damage that would arise from completely cornering the repair market.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/apples-iphone-12-comes-without-a-charger-a-smart-waste-reduction-move-or-clever-cash-grab-148189">Apple's iPhone 12 comes without a charger: a smart waste-reduction move, or clever cash grab?</a>
</strong>
</em>
</p>
<hr>
<p>The average Australian home has <a href="https://thinktv.com.au/facts-and-stats/australian-homes-are-experiencing-a-screen-explosion/">6.7 devices</a>, including televisions, personal computers, laptops, tablets and smartphones. With diminishing opportunities for repair, the environmental burden from disposing of these devices will increase.</p>
<h2>What is being done?</h2>
<p>Phone giants make it tough for third-party repairers to do their job in a variety of ways. This includes constantly changing designs, adding hurdles to the repair process, and restricting access to parts, diagnostic software and repair documentation. </p>
<p>Meanwhile, consumers are left with broken phones and huge repair bills — and repairers are left with less business.</p>
<p>The fight to remove barriers to repair is gaining momentum outside Australia, too, in countries including <a href="https://www.policyalternatives.ca/publications/monitor/when-will-canadians-have-right-repair">Canada</a>, the <a href="https://www.thetimes.co.uk/article/right-to-repair-means-spare-parts-for-household-appliances-mr5gmkjxr">United Kingdom</a> and the <a href="https://www.repair.org/legislation">United States</a>. Legislative reforms have been introduced in the <a href="https://repair.eu/news/european-parliament-calls-for-ambitious-right-to-repair/">European Union</a> and <a href="https://www.vice.com/en/article/93wy8v/newly-passed-right-to-repair-law-will-fundamentally-change-tesla-repair">Massachusetts</a>.</p>
<p>France has introduced a <a href="https://www.ecologie.gouv.fr/indice-reparabilite">Repairability Index</a> requiring electrical and electronic equipment companies to inform consumers about their products’ repairability on a scale of one to ten. </p>
<p>This takes into account the ease of repairability, availability and price of spare parts and availability of technical repair documents.</p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/388956/original/file-20210311-17-y7ixtf.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/388956/original/file-20210311-17-y7ixtf.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=244&fit=crop&dpr=1 600w, https://images.theconversation.com/files/388956/original/file-20210311-17-y7ixtf.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=244&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/388956/original/file-20210311-17-y7ixtf.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=244&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/388956/original/file-20210311-17-y7ixtf.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=307&fit=crop&dpr=1 754w, https://images.theconversation.com/files/388956/original/file-20210311-17-y7ixtf.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=307&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/388956/original/file-20210311-17-y7ixtf.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=307&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">France’s Repairability Index tool is designed to help consumers make informed choices about which device they purchase.</span>
<span class="attribution"><span class="source">France Ministry of Ecological Transition</span></span>
</figcaption>
</figure>
<h2>The path moving forward</h2>
<p>Until the push for right to repair legislative reform gathers pace globally, consumers will have little choice but to pay up to big companies to access their authorised repair services. </p>
<p>If they don’t, they may risk losing their warranty, ending up with a non-functional device and even <a href="https://static1.squarespace.com/static/5e449c8c3ef68d752f3e70dc/t/5ea8a6d93b485d0feb9b5d6b/1588111098207/Report_RightToRepair_HanleyKellowayVaheesan-1.pdf">infringing</a> upon the manufacturers’ software copyrights.</p>
<p>Ideally, phone companies (and others) would assist users with the repair process by providing replacement parts, repair documentation and diagnostic tools to third-party repairers. </p>
<p>This would also help <a href="https://www.apple.com/au/newsroom/2020/07/apple-commits-to-be-100-percent-carbon-neutral-for-its-supply-chain-and-products-by-2030/">Apple</a> and <a href="https://www.samsung.com/us/aboutsamsung/sustainability/environment/">Samsung</a> reduce their carbon footprint and achieve their environmental goals.</p>
<p>Although the way things are going, it’s unlikely tech companies will be able to escape their self-inflicted repair obligations. In the past, Apple CEO Jeff Williams has <a href="https://www.apple.com/newsroom/2019/08/apple-offers-customers-even-more-options-for-safe-reliable-repairs/">said</a>: </p>
<blockquote>
<p>we believe the safest and most reliable repair is one handled by a trained technician using genuine parts that have been properly engineered and rigorously tested. </p>
</blockquote>
<p>But with only so much workforce available even to Apple, sharing the load with smaller repairers will help. </p>
<p>And for consumers’ benefit, the right to repair legislation must be taken seriously, with consistent repairability scores developed across the globe.</p><img src="https://counter.theconversation.com/content/156871/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Ritesh Chugh does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>By adding excessive hurdles to the repair process and restricting access to parts, big device manufacturers leave both the customer and small repair businesses disadvantaged.Ritesh Chugh, Senior Lecturer – Information Systems and Analysis, CQUniversity AustraliaLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1565322021-03-05T12:07:21Z2021-03-05T12:07:21ZHow the world ran out of semiconductors<p>There’s a global shortage in semiconductors, and it’s becoming increasingly serious. The US is currently reviewing its supply of the technology, following a <a href="https://venturebeat.com/2021/02/26/ai-weekly-biden-calls-for-37-billion-to-address-chip-shortage/">landmark executive order</a> from President Joe Biden. </p>
<iframe id="noa-web-audio-player" style="border: none" src="https://embed-player.newsoveraudio.com/v4?key=x84olp&id=https://theconversation.com/how-the-world-ran-out-of-semiconductors-156532&bgColor=F5F5F5&color=D8352A&playColor=D8352A" width="100%" height="110px"></iframe>
<p>The president also pledged US$37 billion (£26 billion) to cover the short-term costs of rebuilding and securing America’s supply of <a href="https://www.semiconductors.org/semiconductors-101/what-is-a-semiconductor/#:%7E:text=Semiconductors%20are%20an%20essential%20component,energy%2C%20and%20countless%20other%20applications">semiconductors</a>, which are a fundamental part of microchips and thus integral to everything from computers to smartphones to renewable energy and military hardware. </p>
<p>The automotive sector has been worst affected by the drought, in an era where microchips now form the backbone of most cars. Ford is predicting a <a href="https://www.bloomberg.com/news/articles/2021-02-05/chip-shortage-spirals-beyond-cars-to-phones-and-game-consoles">20% slump</a> in production and Tesla <a href="https://www.dailymail.co.uk/news/article-9300249/Tesla-plans-two-week-shutdown-Model-3-line-amid-global-shortage-semiconductors.html">shut down</a> its model 3 assembly line for two weeks. In the UK, Honda was forced to <a href="https://www.theguardian.com/business/2021/jan/13/honda-to-close-uk-plant-four-days-owing-to-supply-chain-problems-covid-shortage-semiconductors-car">temporarily shut</a> its plant as well. </p>
<p>Even highly experienced tech companies such as Nvidia and Microsoft are struggling to provide a steady stock of <a href="https://www.techradar.com/uk/news/nvidia-rtx-3000-series-gpu-shortages-are-so-bad-its-bringing-backthe-gtx-1050-ti">graphics cards</a> and <a href="https://www.windowscentral.com/president-biden-address-global-semiconductor-shortage-affecting-xbox-series-xs-and-others">Xboxes</a> respectively. It appears that no company, big or small, tech or non-tech, is safe from the wide-ranging impact of the great semiconductor famine of 2021.</p>
<h2>The concentration problem</h2>
<p>While it is easy to blame the COVID-19 pandemic for this situation, the truth is that the global semiconductor supply chain had this coming for some time. As much as <a href="https://www.eenewsanalog.com/news/reports-tsmc-lost-market-share-2q20">70% of</a> the world’s semiconductors are manufactured by just two companies, Taiwan Semiconductor (TSMC) and Samsung. </p>
<p>The entry barriers into semiconductor manufacturing are astronomically high. There’s a steep learning curve required to set up a semiconductor foundry, entailing an <a href="https://venturebeat.com/2017/10/01/globalfoundries-next-generation-chip-factories-will-cost-at-least-10-billion/">upfront investment of</a> US$10-$12 billion and then <a href="https://warontherocks.com/2020/06/the-chip-wars-of-the-21st-century/#:%7E:text=Foundries%20take%20at%20least%20three,most%20expensive%20factories%20on%20earth.">at least three years</a> to become production-ready. </p>
<p>Even then, there are no guarantees that a new foundry’s chip yields will match those of the incumbents. Chips rapidly become obsolete and price pressures are a major problem in the tech sector, so there are lots of risks to profitability. </p>
<figure>
<iframe width="440" height="260" src="https://www.youtube.com/embed/Hb1WDxSoSec?wmode=transparent&start=0" frameborder="0" allowfullscreen=""></iframe>
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<p>Due to such harsh economics, it has only made sense for a handful of large players to invest in manufacturing capabilities and then spread those costs and risks across hundreds of thousands of customers. Global tech has historically been very happy to hand the manufacturing reins to TSMC and Samsung. And in turn, this has created the supply-chain equivalent of a house of cards. </p>
<h2>High demand</h2>
<p>The pandemic has driven unexpectedly high demand for home electronics such as <a href="https://www.theverge.com/2021/1/11/22225356/pc-sales-shipments-2020-growth-idc-canalys-remote-work">laptops</a> and gaming consoles, as many people started working from home and seeking <a href="https://arstechnica.com/gaming/2020/03/nintendo-switch-sells-out-at-retail-leading-to-third-party-price-gouging/">more sources</a> of indoor entertainment. </p>
<p>Automotive companies had been expecting lower demand, given that car sales tend to move lower in an economic downturn. This, however, proved to be an erroneous assumption, as new car sales started <a href="https://www.shine.cn/biz/auto/2102094551/">bouncing back</a> quickly by the tail end of 2020. Automotive companies tried to re-book previously cancelled semiconductor orders only to discover that home electronics manufacturers had taken their place. </p>
<p>At the same time, President Trump’s trade war with China led to new rules that made it harder for Chinese companies to source semiconductors from TSMC and Samsung. With China’s own semiconductor technology inferior to the industry leaders, Chinese tech behemoths like Huawei <a href="https://www.bloombergquint.com/china/huawei-outhustles-trump-by-stockpiling-chips-needed-for-china-5g">stockpiled semiconductor chips</a> in advance of the new restrictions in 2020, soaking up any spare capacity with large orders. </p>
<p>But the straw that finally broke the proverbial camel’s back was the <a href="https://uk.tradingview.com/symbols/BTCUSD/">sharp rise</a> in bitcoin prices in early 2021. This increased <a href="https://www.scmp.com/tech/tech-trends/article/3123782/bitcoin-volatility-rocks-chinas-graphics-card-market-pushing">the demand</a> for the <a href="https://theconversation.com/nvidias-us-40-billion-deal-to-buy-arm-is-all-but-dead-its-a-classic-example-of-geopolitics-killing-innovation-154999">graphics processing units</a> that are traditionally used in mining the digital currency, exacerbating the semiconductor supply issues further. </p>
<p>All of this has been enough to cause TSMC and Samsung to run out of capacity and significantly increase lead times to fulfil orders, leading to the drought we see today.</p>
<h2>Who loses</h2>
<p>The share prices of TSMC and Samsung have risen by <a href="https://www.google.com/search?q=tsmc+stock+price&rlz=1C1CHBF_en-GBGB917GB917&oq=TSMC+stock+price&aqs=chrome.0.0i131i433j0l9.2115j1j7&sourceid=chrome&ie=UTF-8">190%</a> and <a href="https://www.google.com/search?q=samsung+stock+price&rlz=1C1CHBF_en-GBGB917GB917&oq=samsung+stock+price&aqs=chrome..69i57j0l9.2672j1j7&sourceid=chrome&ie=UTF-8">61%</a> respectively in the past 12 months thanks to the supply shortfall. Despite President Biden’s best efforts, the situation is unlikely to improve in the next three years because of all the barriers to entry in this sector. </p>
<p>Prices of consumer electronics have shot up, thanks to scalpers who routinely buy graphics cards and consoles at recommended retail prices and sell them for <a href="https://www.birminghammail.co.uk/whats-on/shopping/game-ps5-shoppers-livid-scalpers-19816889">higher prices</a> on sites like eBay. </p>
<p>It is only a matter of time before tech manufacturers and retailers decide to increase prices to match the high demand and low supply of the components. Expect to see releases of more expensive variants of existing electronic products hitting the market soon. </p>
<p>Just like in an actual famine, the end consumers of these goods are going to be significantly worse off, with little or no respite coming their way.</p><img src="https://counter.theconversation.com/content/156532/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Hamza Mudassir does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Welcome to the great silicon famine of 2021. And 2022. And 2023. And …Hamza Mudassir, Visiting Fellow in Strategy, Cambridge Judge Business SchoolLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1457002020-09-13T19:49:26Z2020-09-13T19:49:26ZBehind the new Samsung Fold: how the quest to maximise screen size is driving major innovation<figure><img src="https://images.theconversation.com/files/357642/original/file-20200911-22-apy4aa.jpg?ixlib=rb-1.1.0&rect=40%2C209%2C1360%2C702&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><span class="source">Samsung</span></span></figcaption></figure><p>To enlarge a phone, or not to enlarge a phone? That is the question. In the world of flagship smartphones, there seems to be one clear trend: bigger is better. </p>
<p>Manufacturers are trying to strip away anything that might stand in the way of the largest possible slab of screen. There is also growing demand for thinner phones with diminishing <a href="https://www.lifewire.com/bezel-4155199">bezels</a> (the area surrounding a screen). </p>
<p>This trend has now culminated in the latest innovation in smartphone design, the <a href="https://www.t3.com/au/news/best-folding-phones">foldable screen phone</a>. These devices sport thin <a href="https://www.techradar.com/au/news/what-is-oled">OLED</a> self illuminating screens that can be folded in half.</p>
<p>The newest release is the <a href="https://www.theverge.com/21427462/samsung-galaxy-z-fold-2-review">Samsung Galaxy Z fold 2</a> – a device that is almost three-quarters screen and has extravagant overtones rivalled only by a hefty <a href="https://www.samsung.com/au/smartphones/galaxy-z-fold2/buy/">A$2,999 price tag</a>.</p>
<p>But to prevent the phones themselves from growing to unwieldy size, manufacturers are having to find ways to balance size with usability and durability. This presents some interesting engineering challenges, as well as some innovative solutions. </p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/357605/original/file-20200911-22-1vlsst9.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="A giant, old-style phone" src="https://images.theconversation.com/files/357605/original/file-20200911-22-1vlsst9.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/357605/original/file-20200911-22-1vlsst9.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=472&fit=crop&dpr=1 600w, https://images.theconversation.com/files/357605/original/file-20200911-22-1vlsst9.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=472&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/357605/original/file-20200911-22-1vlsst9.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=472&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/357605/original/file-20200911-22-1vlsst9.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=593&fit=crop&dpr=1 754w, https://images.theconversation.com/files/357605/original/file-20200911-22-1vlsst9.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=593&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/357605/original/file-20200911-22-1vlsst9.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=593&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Why do we love large phones?</span>
<span class="attribution"><span class="source">Pixabay</span>, <a class="license" href="http://creativecommons.org/licenses/by-nc-nd/4.0/">CC BY-NC-ND</a></span>
</figcaption>
</figure>
<h2>Internal design complexities of folding phones</h2>
<p>Modern phones still typically use a thin LCD or plastic OLED display covered by an outer glass panel. </p>
<p>Folding displays are a new category that exploit the flexibility of OLED display panels. Instead of simply fixing these panels to a rigid glass panel, they carefully engineer the panel so that it bends – but never quite tightly enough to snap or crack. </p>
<p>Internal structural support is needed to make sure the panel doesn’t crease, or isn’t stressed to the point of creating damage, discolouration or visible surface ripples. </p>
<p>Since this is a mechanical, moving system, reliability issues need to be considered. For instance, how long will the hinge last? How many times can it be <a href="https://www.theverge.com/2019/10/4/20898484/samsung-galaxy-fold-folding-test-failure-durability">folded and unfolded</a> before it malfunctions? Will dirt or dust make its way into the assembly during daily use and affect the screen?</p>
<p>Such devices need an added layer of reliability over traditional slab-like phones, which have no moving parts.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/the-new-iphone-se-is-the-cheapest-yet-smart-move-or-a-premium-tech-brand-losing-its-way-136507">The new iPhone SE is the cheapest yet: smart move, or a premium tech brand losing its way?</a>
</strong>
</em>
</p>
<hr>
<h2>Large screen, thin phone: a recipe for disaster?</h2>
<p>Each generation of smartphones becomes thinner and with smaller bezels, which improves the viewing experience but can make the phone harder to handle. </p>
<p>In such designs, the area of the device you can grip without touching the display screen is small. This leads to a higher chance of <a href="https://www.cnet.com/news/study-19-percent-of-people-drop-phones-down-toilet/">dropping the device</a> – a blunder even the best of us have made. </p>
<p>There’s an ongoing tussle between consumers and manufacturers. Consumers want a large, viewable surface as well as an easily portable and rugged device. But from an engineering point of view, these are usually competing requirements. </p>
<p>You’ll often see people in smartphone ads holding the device with two hands. In real life, however, most people use their phone with <a href="https://www.smartinsights.com/mobile-marketing/mobile-design/research-on-mobile-interaction-behaviour-and-design/">one</a> <a href="https://alistapart.com/article/how-we-hold-our-gadgets/">hand</a>. </p>
<p>Thus, the shift towards larger, thinner phones has also given rise to a boom in demand for assistive tools attached to the back, such as <a href="https://www.androidcentral.com/best-popsockets">pop-out grips and phone rings</a>.</p>
<p>In trying to maximise screen size, smartphone developers also have to account for interruptions in the display, such as the placement of cameras, laser scanners (for face or object identification), proximity sensors and speakers. All are placed to minimise visual intrusion.</p>
<h2>Now you see it, now you don’t</h2>
<p>In the engineering world, to measure the physical world you need either cameras or sensors, such as in a fingerprint scanner. </p>
<p>With the race to increase the real estate space on screens, typically these cameras and scanners are placed somewhere around the screen. But they take up valuable space.</p>
<p>This is why we’ve recently seen tricks to carve out more space for them, such as <a href="https://www.techradar.com/au/news/this-is-the-worlds-first-smartphone-where-half-the-screen-is-a-fingerprint-scanner">pop up</a> cameras and <a href="https://www.google.com/search?q=phone+screen+hole+for+camera&source=lmns&bih=598&biw=1280&rlz=1C5CHFA_enAU871AU871&safe=active&hl=en&sa=X&ved=2ahUKEwjXvcyoveDrAhUwhUsFHXvqBYMQ_AUoAHoECAEQAA">punch-hole</a> cameras, in which the camera sits in a cutout hole allowing the display to extend to the corners. </p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/357640/original/file-20200911-18-r1bxyk.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="Front view of Samsun Galaxy Note 10." src="https://images.theconversation.com/files/357640/original/file-20200911-18-r1bxyk.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/357640/original/file-20200911-18-r1bxyk.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=439&fit=crop&dpr=1 600w, https://images.theconversation.com/files/357640/original/file-20200911-18-r1bxyk.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=439&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/357640/original/file-20200911-18-r1bxyk.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=439&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/357640/original/file-20200911-18-r1bxyk.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=551&fit=crop&dpr=1 754w, https://images.theconversation.com/files/357640/original/file-20200911-18-r1bxyk.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=551&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/357640/original/file-20200911-18-r1bxyk.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=551&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">The Samsun Galaxy Note 10 has a centered punch hole front-facing camera.</span>
<span class="attribution"><span class="source">Samsung</span></span>
</figcaption>
</figure>
<p>But another fantastic place for sensors is right in front of us: the screen. Or more specifically, under the screen.</p>
<p>Samsung is one company that has suggested placing selfie-cameras and fingerprint readers behind the screen. But how do you capture a photo or a face image through a layer of screen? </p>
<p>Up until recently, this has been put in the “too hard basket”. But that is changing: Xiaomi, Huawei and <a href="https://www.extremetech.com/mobile/262497-samsung-patent-shows-phone-camera-inside-display">Samsung</a> all have patents for <a href="https://www.phonearena.com/news/samsung-galaxy-s21-s30-under-display-camera_id125174">under-display cameras</a>.</p>
<p>There are a range of ways to do this, from allowing a camera to see through the screen, to using <a href="https://www.rp-photonics.com/microlenses.html">microlenses</a> and camera pixels distributed throughout the display itself – similar to an insect’s <a href="https://www.britannica.com/animal/insect/Nervous-system#ref250944">compound eye</a>. </p>
<p>In either case, the general engineering challenge is to implement the feature in a way that doesn’t impact screen image quality, nor majorly affect camera resolution or colour accuracy.</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/357639/original/file-20200911-20-1vwk072.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="Close up of an insect's compound eyes" src="https://images.theconversation.com/files/357639/original/file-20200911-20-1vwk072.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/357639/original/file-20200911-20-1vwk072.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/357639/original/file-20200911-20-1vwk072.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/357639/original/file-20200911-20-1vwk072.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/357639/original/file-20200911-20-1vwk072.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/357639/original/file-20200911-20-1vwk072.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/357639/original/file-20200911-20-1vwk072.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Insects have compound eyes. These are made up of repeating units called the ommatidia, sometimes with thousands in each eye. Each ommatidia is a separate visual receptor.</span>
<span class="attribution"><span class="source">Shutterstock</span></span>
</figcaption>
</figure>
<h2>Laptops in our pockets</h2>
<p>With up to 3.8 billion smartphone users <a href="https://www.statista.com/statistics/330695/number-of-smartphone-users-worldwide/">expected by 2021</a>, mobile computing is a primary consumer technology area seeing significant growth and investment.</p>
<p>One driver for this is the professional market, where larger mobile devices allow more efficient on-the-go business transactions. The second market is individuals who who <a href="https://www.statista.com/topics/779/mobile-internet/"><em>only</em> have a mobile device</a> and no laptop or desktop computer.</p>
<p>It’s all about choice, but also functionality. Whatever you choose has to get the job done, support a positive user experience, but also survive the rigours of the real world.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/apples-iphone-11-pro-wants-to-take-your-laptops-job-and-price-tag-123372">Apple's iPhone 11 Pro wants to take your laptop's job (and price tag)</a>
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</em>
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<img src="https://counter.theconversation.com/content/145700/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Andrew Maxwell does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>The upcoming Galaxy Z Fold 2 is almost three-quarters screen. And while that’s convenient, it’s important to actually be able to hold the phone. As design evolves, how do manufacturers adapt?Andrew Maxwell, Senior Lecturer, University of Southern QueenslandLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1192232019-06-25T17:34:17Z2019-06-25T17:34:17ZThe guts of an Apple iPhone show exactly what Trump gets wrong about trade<figure><img src="https://images.theconversation.com/files/280803/original/file-20190621-61747-osnr1.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">The components of an iPhone add up to a different cost than the phone itself.</span> <span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/chiangrai-thailand-may-19-2017-apple-644432827?src=xh1-rM_N3DKr4AUykMO18w-1-6&studio=1">Poravute Siriphiroon/Shutterstock.com</a></span></figcaption></figure><p>Crack open an iPhone and you’ll begin to see why President Donald Trump’s ongoing trade war with China doesn’t make sense. </p>
<p>On paper, imports of the popular smartphone and other goods from China look like a big loss to the U.S. The president certainly thinks so and has often cited the massive U.S.-China bilateral trade deficit – <a href="https://www.census.gov/foreign-trade/balance/c5700.html">US$420 billion in 2018</a> – as a reason to fight his trade war. </p>
<p>When an iPhone X arrives in the U.S., <a href="https://www.businessinsider.com/how-much-it-costs-to-build-the-iphone-x-2017-11">it adds about $370</a> – its factory cost – to the deficit. All told, iPhones add tens of billions of dollars a year to the U.S. deficit with China, which is the gap between imports and exports. But, thanks to the globe-spanning supply chains that run through China, trade deficits in the modern economy are not always what they seem. </p>
<p>Our <a href="https://scholar.google.com/scholar?hl=en&as_sdt=0%2C5&q=Dedrick+Kraemer+Linden&btnG=">research</a> on the breakdown of an iPhone’s costs – where all its components and labor come from and who actually benefits – shows that China gets less value from its iPhone exports than you might think. </p>
<p><iframe id="U1BOU" class="tc-infographic-datawrapper" src="https://datawrapper.dwcdn.net/U1BOU/3/" height="400px" width="100%" style="border: none" frameborder="0"></iframe></p>
<h2>Who really makes the iPhone?</h2>
<p>As part of his escalating trade war, Trump <a href="https://www.cnbc.com/2019/06/06/trump-says-tariffs-on-china-could-be-raised-by-another-300-billion.html">says he may soon</a> slap 25% tariffs on $300 billion in imports from China. That would mean virtually all products shipped to the U.S. from China are subject to high tariffs. </p>
<p>Apple’s iPhone, which is assembled in China, would be among those affected by the new tariffs. Apple <a href="https://www.bloomberg.com/news/articles/2019-06-20/apple-says-tariffs-would-reduce-its-contribution-to-u-s-economy?srnd=premium">is urging the administration</a> to halt its plans, which the company says would hurt its sales.</p>
<p>Trump seems to believe that imports of iPhones, televisions and everything else from China <a href="https://www.nytimes.com/2018/06/19/business/china-trade-war-peter-navarro.html">represent money it’s “taking out”</a> of the U.S. and using to “rebuild” China. </p>
<p>To see how much value China is actually getting, let’s examine an older model of the iPhone – the iPhone 7 – a little more closely.</p>
<p>Start with the most valuable components that make up an iPhone: the touch-screen display, memory chips, microprocessors and so on. They come from a mix of U.S., Japanese, Korean and Taiwanese companies, such as Intel, Sony, Samsung and Foxconn. Almost none of them is manufactured in China. Apple buys the components and has them shipped to China; then they leave China inside an iPhone.</p>
<p>So what about all of those famous factories in China with millions of workers making iPhones? The companies that own those factories, including Foxconn, are all based in Taiwan. Of the <a href="http://www.wipo.int/edocs/pubdocs/en/wipo_pub_econstat_wp_41.pdf">factory-cost estimate</a> of $237.45 from IHS Markit at the time the iPhone 7 was released in late 2016, we calculate that all that’s earned in China is about $8.46, or 3.6% of the total. That includes a battery supplied by a Chinese company and the labor used for assembly. </p>
<p>The other $228.99 goes elsewhere. The U.S. and Japan each take a roughly $68 cut, Taiwan gets about $48 and a little under $17 goes to South Korea. And we estimate that about $283 of gross profit from the retail price – about $649 for a 32 GB model when the phone debuted – goes straight to Apple’s coffers.</p>
<p>We believe you’d get a similar a breakdown from newer iPhones as well.</p>
<p>In short, China gets a lot of low-paid jobs, while the profits flow to other countries.</p>
<p><iframe id="V0y8K" class="tc-infographic-datawrapper" src="https://datawrapper.dwcdn.net/V0y8K/2/" height="400px" width="100%" style="border: none" frameborder="0"></iframe></p>
<h2>The trade balance in perspective</h2>
<p>A better way of thinking about the U.S.-China trade deficit associated with one iPhone would be to only count the value added in China, $8.50, rather than the $240 that shows up as a Chinese import to the U.S. </p>
<p>Scholars have found <a href="https://econpapers.repec.org/article/eeeinecon/v_3a86_3ay_3a2012_3ai_3a2_3ap_3a224-236.htm">similar results for the broader U.S.-China trade balance</a>, although the disparity is less extreme than in the iPhone example. Of the 2017 trade deficit of $375 billion, probably one-third actually involves inputs that came from elsewhere – including the U.S.</p>
<p>The use of China as a giant assembly floor has been good for the U.S. economy, <a href="https://www.nytimes.com/2007/04/17/business/worldbusiness/17iht-glob18.1.5316471.html">if not for U.S. factory workers</a>. By taking advantage of a vast, highly efficient global supply chain, Apple can bring new products to market at prices comparable to its competitors, most notably the Korean giant Samsung. </p>
<p>Consumers benefit from innovative products, and thousands of companies and individuals have built businesses around creating apps to sell in the app store. Apple uses its profits to pay its armies of hardware and software engineers, marketers, executives, lawyers and Apple store employees. And most of these jobs are in the U.S.</p>
<p>If the next round of tariffs makes the iPhone more expensive, demand will fall – hence Apple’s <a href="https://www.bloomberg.com/news/articles/2019-06-20/apple-says-tariffs-would-reduce-its-contribution-to-u-s-economy?srnd=premium">plea to the administration</a>. Meanwhile Samsung, <a href="http://www.businesskorea.co.kr/news/articleView.html?idxno=8785">which makes over half its phones in Korea and Vietnam</a>, with a lower share of U.S. parts, will not be affected as much by a tariff on goods from China and will be able to gain market share from Apple, shifting profits and high wage jobs from the U.S. to South Korea.</p>
<p>Put another way, research has shown globalization hurt some Americans while it <a href="https://piie.com/publications/chapters_preview/3802/2iie3802.pdf">made life better for many others</a>. Putting globalization in reverse with tariffs will also create winners and losers – and there could be far more of the latter. </p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/280782/original/file-20190621-61729-b22y2n.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/280782/original/file-20190621-61729-b22y2n.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/280782/original/file-20190621-61729-b22y2n.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/280782/original/file-20190621-61729-b22y2n.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/280782/original/file-20190621-61729-b22y2n.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/280782/original/file-20190621-61729-b22y2n.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/280782/original/file-20190621-61729-b22y2n.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">China doesn’t get as much value from its exports of consumer electronics like the iPhone as Trump thinks.</span>
<span class="attribution"><a class="source" href="http://www.apimages.com/metadata/Index/Trump-China-Tariffs/2ef2b9f349ee4061ab72425b8d6a31ff/4/0">AP Photo/Andy Wong</a></span>
</figcaption>
</figure>
<h2>Why not make the iPhone in America?</h2>
<p>When we discuss these topics with policymakers and the media, we’re often asked, “Why can’t Apple just make iPhones in the U.S.?” </p>
<p>The main problem is that the manufacturing side of the global electronics industry was <a href="http://pcic.merage.uci.edu/papers/2007/GlobalizationOfInnovation.pdf">moved to Asia in the 1980s and 1990s</a>. Companies like Apple have to deal with this reality. </p>
<p>As the numbers we’ve cited make clear, there’s not much value to be gained for the U.S. economy or its workers from simply assembling iPhones here from parts made in Asia. </p>
<p>While it’s possible to do so, it would take at least a few years to set it up, cost more per unit than production in Asia, and require a lot of carrots and sticks from policymakers to get the many companies involved to do so – like the <a href="https://www.washingtonpost.com/news/wonk/wp/2017/09/18/scott-walker-signs-3-billion-foxconn-deal-in-wisconsin/?noredirect=on&utm_term=.d1c92b8b14d0">potential $3 billion in subsidies</a> Wisconsin gave to Foxconn to build an LCD factory there. </p>
<p>Given that the tariffs are aimed specifically at China, it’s more likely that Apple’s suppliers would move assembly to third-party countries where they already have production. While this would reduce the United States’ trade deficit with China, its trade deficit with the world would stay exactly the same. </p>
<h2>Flawed response to the China challenge</h2>
<p>There is, of course, plenty for the U.S. to complain about when it comes to China’s high-tech industry and policies, whether it’s the lack of intellectual property protection or <a href="http://www.scmp.com/comment/insight-opinion/article/2123957/china-vs-google-facebook-and-other-us-internet-giants-lesson">nontariff barriers</a> that keep major tech companies such as Google and Facebook out of the huge Chinese market. There is room for much tougher and more sophisticated bargaining to address these issues.</p>
<p>Trump’s trade war is based on a simplistic understanding of the trade balance. Expanding tariffs to more and more goods will weigh on U.S. consumers, workers and businesses. And there’s no guarantee that the final outcome will be good when the dispute ends.</p>
<p>This is a war that should never have been started.</p>
<p><em>This is an updated version of an <a href="https://theconversation.com/we-estimate-china-only-makes-8-46-from-an-iphone-and-thats-why-trumps-trade-war-is-futile-99258">article originally published</a> on July 6, 2018.</em></p><img src="https://counter.theconversation.com/content/119223/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Jason Dedrick has received funding from the National Science Foundation and the Alfred P. Sloan Foundation. </span></em></p><p class="fine-print"><em><span>Greg Linden has in the past received funding from the Sloan Foundation and from the Ryoichi Sasakawa Young Leaders Fellowship Fund (Sylff). </span></em></p><p class="fine-print"><em><span>Kenneth L. Kraemer received funding from the National Science Foundation and the Sloan Foundation of New York in the past, but does not currently and has not for five or more years. </span></em></p>Trump believes the money Americans spend on Chinese imports like the iPhone goes straight into China’s pockets. In reality, China gets very little value from it.Jason Dedrick, Professor of Information Studies, Syracuse UniversityGreg Linden, Research Associate, University of California, BerkeleyKenneth L. Kraemer, Research Professor of Business, University of California, IrvineLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1182342019-06-05T10:41:12Z2019-06-05T10:41:12Z2D spintronics has already transformed computing – now we’re making it work in three dimensions<figure><img src="https://images.theconversation.com/files/277878/original/file-20190604-69075-1s3e7n3.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><a class="source" href="https://www.shutterstock.com/image-illustration/abstract-background-163743035?src=avU0DY-XMpU4W1RuKZPhfA-1-86">Deniseus</a></span></figcaption></figure><p><a href="https://theconversation.com/shift-from-electronics-to-spintronics-opens-up-possibilities-of-faster-data-45864">Spintronics</a> might not be the sort of word that comes up in everyday discussions, but it has been revolutionising computer technology for years. It’s the branch of physics that involves manipulating the spin of a flow of electrons, which first reached consumers in the late 1990s in the form of magnetic computer hard drives with several hundreds of times the storage capacity of their predecessors. </p>
<figure class="align-right zoomable">
<a href="https://images.theconversation.com/files/277923/original/file-20190604-69059-1rnkyks.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/277923/original/file-20190604-69059-1rnkyks.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=237&fit=clip" srcset="https://images.theconversation.com/files/277923/original/file-20190604-69059-1rnkyks.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=1026&fit=crop&dpr=1 600w, https://images.theconversation.com/files/277923/original/file-20190604-69059-1rnkyks.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=1026&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/277923/original/file-20190604-69059-1rnkyks.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=1026&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/277923/original/file-20190604-69059-1rnkyks.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=1289&fit=crop&dpr=1 754w, https://images.theconversation.com/files/277923/original/file-20190604-69059-1rnkyks.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=1289&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/277923/original/file-20190604-69059-1rnkyks.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=1289&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Remember me?</span>
<span class="attribution"><a class="source" href="https://www.shutterstock.com/image-vector/vector-mp3-player-53699233?src=qYJ2tOgj7jex4cr1-kFz9w-1-23">leviana</a></span>
</figcaption>
</figure>
<p>These and other electronic devices have <a href="https://www.youtube.com/watch?v=3PMbN0PVyy0">since been refined</a> to make computers many times more powerful again, not to mention much cooler and more energy efficient – enabling everything from MP3 players to the smartphones of today. <a href="https://newsroom.intel.com/news/intel-starts-testing-smallest-spin-qubit-chip-quantum-computing/#gs.g5k0jo">Intel</a> and <a href="https://ai.googleblog.com/2018/03/a-preview-of-bristlecone-googles-new.html">Google</a> began unveiling quantum processors last year, and <a href="https://news.samsung.com/global/samsung-electronics-starts-commercial-shipment-of-emram-product-based-on-28nm-fd-soi-process">Samsung</a> and <a href="https://www.everspin.com/news/everspin-ships-world%E2%80%99s-first-pre-production-28-nm-1-gb-stt-mram-customer-samples">Everspin</a> launched MRAM (magnetic random access memory) chips a few months ago. This new technology is expected to substantially improve computing performance – by <a href="https://www.spintronics-info.com/nec-and-tohoku-university-developed-spintronics-text-search-chip-cuts-power-reduction-99">one estimate</a>, for example, the potential reduction in power requirements could be over 99%. </p>
<p>Even so, all these advances have been labouring under a major limitation: the spin manipulation is confined to a single ultra-thin layer of magnetic material. Tens of these layers are typically stacked in a “sandwiched” structure, which interact through complex interfaces and interconnects, but their functionality is fundamentally 2D in nature. </p>
<p>Industry leaders like Stuart Parkin, who created IBM’s original spintronics-driven computer hard drive, the <a href="https://www.ibm.com/ibm/history/ibm100/us/en/icons/spintronics/">Deskstar 16GP Titan</a>, have <a href="https://youtu.be/kB0ixO5lrzQ">been saying</a> for years that one of the biggest challenges in magnetic computing is to shift to a much more flexible and capable 3D version.</p>
<p>This would see information transmitted, stored and processed across any point of the three-dimensional stack of magnetic layers. Recent pioneering <a href="https://www.spintronics-info.com/worlds-first-3d-spintronics-chip-developed-cambridge">advances</a> are starting to bring this paradigm shift <a href="https://www.agenciasinc.es/en/News/Three-Dimensional-Nanomagnets-for-the-computer-of-tomorrow">closer</a>, but we still face great challenges to reach the same degree of control as we have in two dimensions. </p>
<p>In a <a href="https://www.nature.com/articles/s41563-019-0386-4">new paper</a> led by the universities of Glasgow and Cambridge, in collaboration with researchers at the University of Hamburg, the Technical University of Eindhoven and the Aalto University School of Science, we have taken a significant step towards achieving that goal.</p>
<h2>Spins and charges</h2>
<p>Traditional electronics is based on the fact that electrons have electrical charges. In a basic computer, chips and other units transmit information by sending and receiving tiny electrical pulses. They register a “one” for a pulse and a “zero” for no pulse, and by counting these over millions of repetitions, it becomes the basis of a language of instructions. </p>
<p>Traditional magnetic hard drives rely on properties associated to electrical charges too, but they work on a different principle, with very tiny regions of a flat magnetic disk recording zeroes and ones via its two possible magnetic orientations. Magnetic drives have the great benefit that data is still there even when the power is switched off, though the information is recorded and retrieved much more slowly than using the transistors that we find in computer circuits. </p>
<p>Spintronics is different: it exploits both the charge and the intrinsic magnetism of electrons - otherwise known as its spin. The difference between spin and charge is sometimes likened to the way that the Earth orbits the sun but also spins on its axis at the same time. But whereas electrons are always negatively charged, they can spin “up” or “down”.</p>
<p>It was <a href="https://www.nobelprize.org/prizes/physics/2007/summary/">discovered</a> in the late 1980s that if an electrical current was conducted through a device formed by a non-magnetic sheet sandwiched between two magnetic sheets, the resistance of this device to the electron flow would change dramatically depending on the orientation of the magnets within the two magnetic sheets. </p>
<p>This effect was readily exploited in hard drives, with these spintronic systems acting as very sensitive sensors that could read many more zeroes and ones of magnetic information within the same area than previous hard drives – thus transforming storage capacity. Known as giant magnetoresistance, this later yielded the <a href="https://www.nobelprize.org/prizes/physics/2007/summary/">Nobel Prize in Physics</a> for Albert Fert and Peter Grunberg, the two scientists who discovered it simultaneously. </p>
<h2>Chiral spintronics</h2>
<p>Since the birth of spintronics, there have been many important advances, including some recent exciting ones in an area called chiral spintronics. Whereas we usually think of two magnets as having a “north” and “south” that rotate towards or away from one another along a 180º line – watch the compass towards the end of <a href="https://youtu.be/Mp0Bu75MSj8">this video</a> for example – under particular conditions, tiny magnets at the atomic level also present chiral spin interactions. This means that neighbouring magnets have a preference to orient at angles of 90º. </p>
<p>The existence of these interactions is a key ingredient to create and manipulate pseudo-particles called magnetic skyrmions, which have topological properties that <a href="https://eandt.theiet.org/content/articles/2019/05/could-skyrmions-change-the-future-of-computing/">enable them</a> to perform computing applications more effectively, with huge potential to further improve data storage. </p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/277933/original/file-20190604-69075-940e9s.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/277933/original/file-20190604-69075-940e9s.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/277933/original/file-20190604-69075-940e9s.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=375&fit=crop&dpr=1 600w, https://images.theconversation.com/files/277933/original/file-20190604-69075-940e9s.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=375&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/277933/original/file-20190604-69075-940e9s.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=375&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/277933/original/file-20190604-69075-940e9s.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=471&fit=crop&dpr=1 754w, https://images.theconversation.com/files/277933/original/file-20190604-69075-940e9s.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=471&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/277933/original/file-20190604-69075-940e9s.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=471&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">An attractive notion.</span>
<span class="attribution"><a class="source" href="https://www.shutterstock.com/image-vector/magnet-plant-lines-triangles-point-connecting-753575932?src=H1nOZS9ebp625GHgnLRDlQ-1-22">piick</a></span>
</figcaption>
</figure>
<p>Until now, however, chiral spin interactions had only been observed and exploited in 2D spintronics. In our new paper, we show for the first time that this interaction can be also created between magnets located at two neighbouring magnetic layers separated by an ultra-thin non-magnetic metallic layer. </p>
<p>For this, we created a device with a total of eight layers using a technique called <a href="https://www.youtube.com/watch?v=L6ZIkmIVm6c">sputtering</a> to deposit nanoscale thin films. We had to carefully tune the interfaces of the layers to balance other magnetic interactions, and we studied the behaviour of the system under magnetic fields at room temperature employing lasers. The way the device behaved was confirmed by complementary magnetic simulations performed by our collaborator at the University of Hamburg. </p>
<p>This discovery opens new exciting routes to exploit further 3D spintronic effects, with chiral spin interactions playing a pivotal role to create more compact and efficient ways to store and move magnetic data along the whole 3D space. Future work will focus on finding ways to increase the strength of this interaction and expand the range of devices where the effect is present. We expect our work will attract great interest within the spintronic community and stimulate industry to continue working on magnetic computing devices based on these radically new concepts.</p>
<p>The first impact of spintronics in the computing market was extremely fast – it took just eight years from the discovery of giant magnetoresistance to the launch of IBM’s Deskstar 16GP Titan in 1997. The leap to 3D still needs to overcome multiple obstacles, from precisely fabricating the necessary devices to exploiting magnetic interactions in unconventional computing architectures. Our recent discovery brings us a step closer to achieving this very challenging but exciting objective.</p><img src="https://counter.theconversation.com/content/118234/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Amalio Fernandez-Pacheco receives funding from the UK Engineering and Physical Science Research Council, the Winton Programme for the Physics of Sustainability, and the Royal Society. He is also affiliated with the University of Cambridge.</span></em></p>Manipulating electron spin has heralded everything from iPods to the latest laptops. Stand by for the next paradigm shift.Amalio Fernandez-Pacheco, EPSRC Early Career Fellow, Physics and Astronomy, University of GlasgowLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1093772019-01-04T14:56:09Z2019-01-04T14:56:09ZWhat is really eating Apple – and why Steve Jobs would not be doing a lot better<figure><img src="https://images.theconversation.com/files/252483/original/file-20190104-32148-il9aoa.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Jobs worth?</span> <span class="attribution"><a class="source" href="https://www.shutterstock.com/image-illustration/christmas-island-australia-may-20-2017-643756204?src=ZjPYK8kUoRO8W7XPDOZuoA-1-39">franz12</a></span></figcaption></figure><p>Apple has started the new year by disappointing investors with <a href="https://www.apple.com/newsroom/2019/01/letter-from-tim-cook-to-apple-investors/">its first</a> profit warning in 17 years. The company said that poor sales of its <a href="https://www.macworld.co.uk/news/iphone/new-iphone-xs-2018-3646340/">latest range</a> of iPhones has helped to weaken its first financial quarter (September to December 2018). Apple now expects revenues of US$84 billion (£66 billion) with a gross profit margin of 38%, having <a href="https://www.bloomberg.com/news/articles/2019-01-02/apple-cut-first-quarter-sales-forecast-on-weak-iphone-sales">initially expected</a> between US$89 billion and US$93 billion. In the same quarter last year, Apple brought in US$88.3 billion on a gross margin of 42%. </p>
<p>This revision <a href="https://uk.finance.yahoo.com/chart/AAPL#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">caused</a> the company’s stock to drop 10% to its lowest level in 21 months. It is time to find culprits, and I will not be surprised to see headlines like, “Tim Cook is not up to the Job(s)” or: “Seven years after Jobs’ death, Apple is starting to rot.” We mustn’t believe them, however. </p>
<p>The reason why is explained in <a href="https://www.simonandschuster.com/books/The-Halo-Effect/Phil-Rosenzweig/9781476784038">The Halo Effect</a>, which was published by my colleague Phil Rosenzweig in 2007 – in my opinion one of the most important books in the history of management. Phil argues that perceptions of performance contaminate the assessments that we make about managers and leaders. He uses several examples, from Lego to Cisco to ABB, to show that a leader’s skills do not affect a company’s performance in a significant way. </p>
<p>When a company performs well, we tend to evaluate its leader in way that is too positive. This induces us to attribute stellar performance to certain leadership skills. So, in the case of Steve Jobs, many will eulogise his visionary perfectionism, and the great risks he took in reinventing consumer electronics categories. Yet the evidence doesn’t back this up. </p>
<h2>The dirty truth</h2>
<p>The one academic paper that has done a decent (econometric) job of identifying and quantifying the effect of individual leadership in corporate performance is <a href="http://faculty.chicagobooth.edu/marianne.bertrand/research/papers/managing_style_qje.pdf">this one</a> from 2003. The two professors, Marianne Bertrand and Antoinette Schoar, from University of Chicago and MIT respectively, calculated that individual chief executives only contribute to between 2% and 4% of a company’s total performance. </p>
<p>In other words, if Apple’s profit margin is 38%, Tim Cook would be able to add or detract 1.5% at most. The same is true in reverse of Steve Jobs’ achievements during his two periods at the helm (1976-85 and 1997-2011). We can’t attribute Apple’s once skyrocketing stock to his tenure because we don’t know what the alternative best-case scenario would have been. </p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/252492/original/file-20190104-32139-1tzx65o.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/252492/original/file-20190104-32139-1tzx65o.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/252492/original/file-20190104-32139-1tzx65o.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/252492/original/file-20190104-32139-1tzx65o.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/252492/original/file-20190104-32139-1tzx65o.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/252492/original/file-20190104-32139-1tzx65o.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/252492/original/file-20190104-32139-1tzx65o.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/252492/original/file-20190104-32139-1tzx65o.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Cook who’s talking.</span>
<span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/tim-cook-chief-executive-officer-apple-1069919423?src=BdA7WdkbRoQW8G906FtfJA-1-18">John Gress Media Inc</a></span>
</figcaption>
</figure>
<p>In my view, Apple’s problems are primarily caused by external events. Cook explains in his recent letter that, with the exception of the <a href="https://www.cnbc.com/2018/05/01/apple-earnings-software-and-services-revenue.html">services business</a> – which includes the App Store and iTunes and accounted for 14% of revenues in financial 2018 – all the other Apple businesses will be “constrained”. This means Macs, iPads, iWatches but most importantly iPhones, which <a href="https://s22.q4cdn.com/396847794/files/doc_financials/quarterly/2018/Q4/10-K-2018-(As-Filed).pdf">accounted for</a> 62.7% of total Apple revenues in 2018, compared to 63.4% in 2016. </p>
<p>What is causing this constraint? The increasing competition from Chinese manufacturers such as Huawei and Xiaomi – but also from Google, LG and Samsung – has eroded the once dominant position of Apple in the smartphone market. Competition has been particularly damaging in emerging markets, which Cook is blaming on a strong dollar and weaker macroeconomic conditions – as opposed to any faulty Apple strategy in this part of the world. </p>
<p>With respect to markets where the iPhone has enjoyed a more dominant position – especially the US – Apple recognises that customers don’t replace their devices as often as they used to. A <a href="https://www.wired.com/story/silver-lining-apples-very-bad-iphone-news/">recent report</a> by BayStreet Research estimated that, while the average user upgraded her iPhone every 24 months as recently as 2015, by the last quarter of 2018 this holding period had jumped to 36 months. </p>
<p>This is due to fewer carrier subsidies, according to Apple – but also, in my opinion, to the fact that the new devices do not have much more to offer. I use an iPhone 7, which I bought in 2016, and I am honestly not inclined to spend US$1,000 for I-am-not-sure-which new features on a newer version. I already get much more from my current device than I need. </p>
<h2>Apple’s problem</h2>
<p>It worries me that Apple is a single-product company. Among its other revenues, iPad sales are one-tenth of iPhone sales eight years after tablets were launched. By comparison, Samsung mobile phone sales <a href="https://images.samsung.com/is/content/samsung/p5/global/ir/docs/2018_3Q_conference_eng.pdf">only represent</a> 36.6% of its total revenues. Wearables by Apple are not taking off either – and the company <a href="https://nypost.com/2018/04/03/why-microsoft-and-apple-dont-need-to-sell-your-data/">is not</a> monetising its platform business by selling customer data to the same extent as digital rivals such as Google, Amazon and Facebook.</p>
<p>As I argued in <a href="https://theconversation.com/why-apple-is-no-longer-a-byword-for-innovation-just-ask-the-markets-107529">an article</a> in The Conversation a few weeks ago, the decline in Apple stock in recent months, down 37% since August 2018, reflects a change in market perception about the company’s ability to grow. Apple is no longer seen as a growth stock, but rather a dividend-paying, profitable company whose value is less based on a bright future than what is currently being delivered to its shareholders. The new financials confirm this view. </p>
<p><strong>Apple share price, 2010-19</strong></p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/252491/original/file-20190104-32154-1ibwei8.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/252491/original/file-20190104-32154-1ibwei8.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/252491/original/file-20190104-32154-1ibwei8.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=257&fit=crop&dpr=1 600w, https://images.theconversation.com/files/252491/original/file-20190104-32154-1ibwei8.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=257&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/252491/original/file-20190104-32154-1ibwei8.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=257&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/252491/original/file-20190104-32154-1ibwei8.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=323&fit=crop&dpr=1 754w, https://images.theconversation.com/files/252491/original/file-20190104-32154-1ibwei8.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=323&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/252491/original/file-20190104-32154-1ibwei8.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=323&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption"></span>
<span class="attribution"><a class="source" href="https://uk.finance.yahoo.com/chart/AAPL#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">Yahoo Finance</a></span>
</figcaption>
</figure>
<p>As Phil Rosenzweig explains in his book, Apple’s story is not a new one. Today we blame the current Apple management’s over-dependence on a single product for the problems with investors. Cook and his team will respond by diversifying through acquisitions, or betting more heavily on new territories, or even staying put with its current product offerings. </p>
<p>Whether this works or fails, the management’s style of leadership will probably be disproportionately praised or criticised. It is always easy for analysts to be wise in hindsight. But the reality is that even the world’s biggest businesses are more vulnerable to external forces than we like to think. However the leadership reacts and, whoever is at the helm, the effect is actually quite limited.</p><img src="https://counter.theconversation.com/content/109377/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Arturo Bris does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Some will point to Apple’s lost talisman as the reason for the company’s current woes. They needn’t bother.Arturo Bris, Professor of Finance, International Institute for Management Development (IMD)Licensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1034872018-09-21T11:07:54Z2018-09-21T11:07:54ZSamsung’s foldable phone could soon be a reality<figure><img src="https://images.theconversation.com/files/237125/original/file-20180919-158225-4dixv4.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><a class="source" href="https://news.samsung.com/us/samsung-displays-unbreakable-panel-certified-underwriters-laboratories/">Samsung</a></span></figcaption></figure><p>We rarely see a truly remarkable new technology more than once a decade. After <a href="https://theconversation.com/why-are-flexible-computer-screens-taking-so-long-to-develop-53143">years of undelivered promises</a>, such a technology looks finally set to enter the market: the flexible computer screen.</p>
<p>Imagine, a tablet display you can fold up and put in your pocket, a smart watch whose strap is the screen, or a handbag that is also a monitor and keyboard. Nokia <a href="https://www.cam.ac.uk/news/cambridge-and-nokia-introduce-new-stretchable-and-flexible-mobile-phone-concept">originally called</a> this proposed technology “Morph” back in 2008 because of the plethora of applications it would make possible. Now it looks like it will become a reality.</p>
<p>After nearly <a href="https://www.militaryaerospace.com/articles/print/volume-15/issue-10/features/technology-focus/display-technology-leaps-to-the-next-generation.html">two decades of work</a>, Samsung <a href="https://bgr.com/2018/09/05/samsung-foldable-galaxy-phone-more-design-details/">is rumoured</a> to be getting ready for the launch of the first flexible smartphone. The company’s head of mobile <a href="https://www.cnbc.com/2018/09/04/samsung-unveiling-a-foldable-smartphone-this-year.html">recently said</a> it was “time to deliver” such a phone, and that the development process for it was “nearly concluded”.</p>
<p>But perhaps more significantly, the Samsung Display division of the company <a href="https://news.samsung.com/us/samsung-displays-unbreakable-panel-certified-underwriters-laboratories/">recently said</a> it had developed an “unbreakable smartphone panel” that had passed rigorous safety testing. Even after being subjected to temperatures of 71˚C and -32˚C, and dropped from a height of 1.8 metres, the display showed no signs of damage and functioned normally. </p>
<p>This display is a flexible organic light emitting diode (OLED) panel made of an unbreakable surface with a plastic overlay window attached to it, making it simultaneously lightweight and tough as glass but a lot more robust. Manufacturers have yearned for many years to make displays with flexible, bendable properties and a paper-like feel with electronic functionality. If Samsung has truly found a way to protect a flexible OLED then it has solved a major technical challenge in removing the need for the glass screens used on most other displays today.</p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/237326/original/file-20180920-129859-13xw3qt.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/237326/original/file-20180920-129859-13xw3qt.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/237326/original/file-20180920-129859-13xw3qt.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/237326/original/file-20180920-129859-13xw3qt.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/237326/original/file-20180920-129859-13xw3qt.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/237326/original/file-20180920-129859-13xw3qt.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/237326/original/file-20180920-129859-13xw3qt.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Smartphone of the near future?</span>
<span class="attribution"><a class="source" href="https://www.shutterstock.com/image-illustration/flexible-smartphone-concept-illustration-screen-layout-159538328?src=kg8nz5EEKv0q5zuQsPTtGg-1-2">Grzegorz Petrykowski/Shutterstock</a></span>
</figcaption>
</figure>
<p>Glass was originally needed to actually stop displays from bending. Old-fashioned liquid crystal displays easily distorted when bent because the molecules in the liquid inside them would become misaligned. <a href="https://www.whathifi.com/advice/what-oled-tech-benefits-best-oled-tvs-and-oled-phones">Today’s OLED screens</a> are based on a solid layer of light-emitting material that doesn’t easily distort in this way. But glass is also used to protect the organic molecules in an OLED display from being degraded by water vapour and other gases that would shorten their lifespan. Until now, encapsulating displays in flexible plastic hasn’t been enough to protect them.</p>
<p>A more advanced, <a href="https://www.androidauthority.com/quantum-dot-vs-oled-explained-659321/">better quality</a> kind of screen known as a <a href="https://www.cnet.com/news/how-quantum-dots-could-challenge-oled-for-best-tv-picture/">quantum dot light emitting diode</a> (QLED) display can also be made flexible. These use nano-crystals to produce high-quality, pure and sharp monochromatic light. They convert the backlight into the pure basic colours without the use of filters. But encapsulating QLED displays is even harder than OLEDs and so are likely to take a lot longer to turn into a flexible product.</p>
<h2>Increasing flexibility</h2>
<p>Samsung’s flexible OLED screen is likely to be have the most basic level of flexibility, with the ability to be bent and curved without distorting the display but not completely folded. The level of flexibility might be increased as the nanotechnology in the screens improves, as the nanowires used to carry electricity through the displays become <a href="https://www.nature.com/articles/srep45903">more flexible at smaller diametres</a>. </p>
<p>In the future we may eventually see rollable displays that can be rolled up like a scroll. The most advanced type of flexible screen will be one that can be folded or even crushed like a sheet of paper and still produce a seamless image. The newest and most exciting idea for creating these screens is to use <a href="https://www.nature.com/articles/s41467-017-00399-6">new “auxtetic” materials</a>, which become thicker as they are stretched rather than thinner.</p>
<p>These materials can absorb high energy impacts and are made of single molecules or crystals that can self-align once distorted. They are typically lightweight and would allow the creations of screens with hinge-like design features that can flex significantly.</p>
<p>In the meantime, appears that within a year we could be able to snuggle up in bed reading from a screen that we don’t have to worry about damaging if we fall asleep on it. I, for one, can’t wait to get my hands on this new tech.</p><img src="https://counter.theconversation.com/content/103487/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Ravi Silva does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>After two decades of work, the technical challenges of a bendable screen may have been overcome.Ravi Silva, Director, Advanced Technology Institute, University of SurreyLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/839012017-09-13T13:29:14Z2017-09-13T13:29:14ZNever mind the iPhone X, battery life could soon take a great leap forward<p>Another suite of Apple iPhones, another media frenzy. Much has been written about the $999/£999 iPhone X, the demise of the home button, the “face ID” function, wireless charging and so on. Somewhere down the list of improvements was <a href="https://www.phonearena.com/news/Apple-iPhone-X-iPhone-8-and-iPhone-8-Plus-battery-life_id97985">extra battery life</a>, at least for the iPhone X, <a href="https://www.theguardian.com/technology/2017/sep/12/iphone-x-release-date-apple-home-button-screen">thanks to</a> its new souped up A11 bionic processor. </p>
<p>Apple says the new device will charge for up to two hours more than the iPhone 7, <a href="https://www.apple.com/uk/iphone-7/specs/">suggesting</a> 14 hours of internet use, for instance. Battery life on the iPhone 8, on the other hand, appears to be about comparable with its predecessor. <a href="https://www.theguardian.com/technology/2017/sep/13/apple-iphone-8-iphone-x-what-is-wireless-charging-do-i-need-it">Wireless charging</a>, to which Apple is late to the party, makes no difference to the amount of power devices can store. </p>
<p>Improvements to batteries are usually a key part of smartphone launches, as you would expect for one of the major specifications on which consumers judge new devices. Samsung <a href="http://www.techradar.com/reviews/samsung-galaxy-note-8-review/3">had much to say</a> on this subject when it launched the Galaxy Note 8 last month – albeit less about extending battery life than ensuring no repeats of <a href="http://www.techradar.com/news/samsung-galaxy-note-7-battery-fires-heres-why-they-exploded">the flaws</a> in Note 7s that made them prone to catch fire. </p>
<p>Yet several decades into the mobile computing revolution, even the best products are still relatively limited in how long they can function on a single charge. The original iPhone was <a href="https://www.itworld.com/article/2832547/mobile/is-the-iphone-s-battery-life-actually-better-after-five-years-.html">good for</a> eight hours of internet browsing, for example, so Apple’s devices have only advanced modestly in ten years. </p>
<p>So far, manufacturers have tended to focus on improving battery technology, packing more and more energy into less and less space. Those fiery Galaxy Note 7s were a <a href="https://theconversation.com/why-batteries-have-started-catching-fire-so-often-68602">cautionary tale</a> of what can go wrong when this energy gets released as heat. </p>
<p>Manufacturers also look to improve other mobile hardware that consumes energy – including the display, WiFi, GPS and the central processing unit (CPU). The new iPhones’ improved CPUs and OLED screens have made them more battery friendly, for example.</p>
<figure>
<iframe width="440" height="260" src="https://www.youtube.com/embed/mMV_LcrZtLg?wmode=transparent&start=0" frameborder="0" allowfullscreen=""></iframe>
</figure>
<p>But one area that has received surprisingly little attention is the energy consumed by software, or rather the energy consumed by the CPU when running particular software. Neither Samsung nor Apple seemed to make any noises in this direction with their latest launches, but this emerging field could make a major difference to how long we need to charge our devices in future. </p>
<h2>Software sap</h2>
<p>Decades ago, when computers were thousands of times slower, developers would hand-tune code to near perfection to squeeze out every last drop of performance. But as software has become more complicated – thanks to new features, improved user experience and so forth – this stopped being possible. </p>
<p>Software development is now several layers removed from the raw binary machine code that the CPU deals in. Developers also rely on libraries of existing code because it would take too long to build each instruction from scratch every time. Both changes reduce duplicated effort and greatly speed up development time. But the final code often contains parts that are redundant in a particular app, or it could be improved with more efficient tailor-made segments. </p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/185835/original/file-20170913-23134-1hixvqd.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/185835/original/file-20170913-23134-1hixvqd.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/185835/original/file-20170913-23134-1hixvqd.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=338&fit=crop&dpr=1 600w, https://images.theconversation.com/files/185835/original/file-20170913-23134-1hixvqd.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=338&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/185835/original/file-20170913-23134-1hixvqd.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=338&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/185835/original/file-20170913-23134-1hixvqd.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=425&fit=crop&dpr=1 754w, https://images.theconversation.com/files/185835/original/file-20170913-23134-1hixvqd.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=425&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/185835/original/file-20170913-23134-1hixvqd.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=425&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Phone brain.</span>
<span class="attribution"><a class="source" href="https://www.shutterstock.com/image-illustration/3d-illustration-cpu-over-digital-background-711010207?src=AtsySJkQRWmXEVG9knvRFw-1-0">Mmaxer</a></span>
</figcaption>
</figure>
<p>Developers often try to mitigate these disadvantages by making their code run as fast as possible, which in theory reduces energy consumption. Yet this doesn’t always work in practice, since some instructions are more power-hungry than others and can end up neutralising the benefits. </p>
<p>The net result is that the energy consumption of software has <a href="https://doi.org/10.1109/HPCA.2016.7446054">increased considerably</a> over the years. Nobody much cared until the last decade or so, since most software ran on machines that were mains powered. This has changed with the rise of mobile devices – while mounting concerns about the links between electricity consumption and climate change have added extra urgency. </p>
<h2>The AIs have it</h2>
<p>There is another reason why developers were slow to address this problem, which is that the energy consumption from each piece of software was very difficult to measure. This is because each device’s configuration is different. Energy use can change depending on whether a program has run before, or whether other programs are running. </p>
<p>Lately, however, there have been advances. They involve <a href="http://ieeexplore.ieee.org/document/7393719/">using machine learning</a> to estimate energy use by analysing particular lines of code or software components, and referencing energy data from other programs running on many other devices. Do this well and you can get the computer to do the hard part: search for alternative software designs that make the software more efficient. </p>
<p>Welcome to search-based software engineering. It can be as simple as <a href="https://dspace.mit.edu/handle/1721.1/46709">finding redundant code</a> that can be skipped or <a href="http://www.sciencedirect.com/science/article/pii/S1084804517301285">fine-tuning</a> the configuration, or it can extend to <a href="http://dl.acm.org/citation.cfm?id=2754752">making changes to</a> existing source code. Our <a href="http://dx.doi.org/10.1109/TETCI.2017.2699193">own work</a> has looked at both choosing alternative software components from existing libraries and generating new parts of code from scratch. We even managed to <a href="https://link.springer.com/chapter/10.1007/978-3-319-09940-8_22">find and repair</a> several hundred bugs in <a href="https://mapr.com/products/apache-hadoop/">Hadoop</a>, a very widely used software framework.</p>
<p>Our vision is that these search-based methods for improving energy efficiency will be incorporated into what is known as the “compiler” stage, when human-readable computer code is converted into the zeroes and ones the machine understands. These searches would happen automatically and developers wouldn’t need to think about them – their code would be efficient out of the box. </p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/185836/original/file-20170913-23106-19djmfu.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/185836/original/file-20170913-23106-19djmfu.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/185836/original/file-20170913-23106-19djmfu.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/185836/original/file-20170913-23106-19djmfu.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/185836/original/file-20170913-23106-19djmfu.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/185836/original/file-20170913-23106-19djmfu.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/185836/original/file-20170913-23106-19djmfu.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/185836/original/file-20170913-23106-19djmfu.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">The long and winding code.</span>
<span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/programs-hacking-hard-disk-software-codes-651473887?src=Ls889xOGMP8MziSFB0VtHw-1-31">Dmitry A</a></span>
</figcaption>
</figure>
<p>There is still a long way to go, it should be said. The main difficulty is getting the estimates of software energy consumption right, especially for lots of different devices at the same time. But the potential over the next five years looks exciting. We were able to show a 40% to 70% reduction in CPU energy use for a couple of specific tasks, and it’s not inconceivable that this could be replicated over all running software. </p>
<p>Combined with better batteries and more improvements to hardware performance, such as <a href="http://grist.org/cleantech/2011-03-10-meet-the-zero-energy-transparent-tv">zero energy screens</a>, we could be talking about serious gains on battery life. In future, the leading manufacturers may no longer be talking up incremental improvements to battery life capabilities – instead they could be adding many hours and maybe even days.</p><img src="https://counter.theconversation.com/content/83901/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Alexander Brownlee receives funding from EPSRC and Microsoft.</span></em></p><p class="fine-print"><em><span>Jerry Swan does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>It feels like we’ve seen less progress on charge time than almost anything else in smartphones. Could software efficiency be the answer?Alexander Brownlee, Senior Research Assistant, University of StirlingJerry Swan, Senior Research Fellow, Computer Science, University of YorkLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/749802017-03-31T06:24:15Z2017-03-31T06:24:15ZWhat South Korean president Park’s political demise means for the region’s geopolitics<p>South Korea’s former president, <a href="https://www.nytimes.com/2017/03/30/world/asia/park-geun-hye-south-korea-arrest.html?emc=edit_mbe_20170331&nl=morning-briefing-europe&nlid=64524812&te=1&_r=0">Park Geun-hye, has been arrested</a> on charges including extortion, bribery and abuse of power over <a href="http://www.bbc.com/news/world-asia-39335211">an influence-peddling scandal</a> that led to her impeachment by the National Assembly in December 2016. That decision was upheld by the Constitutional Court in March.</p>
<p>An election to decide on her replacement will be held on May 9, and it could see profound changes in South Korean foreign policy. </p>
<p><a href="http://english.hani.co.kr/arti/english_edition/e_national/787054.html">According to opinion polls, the most likely person to be elected</a> president is opposition leader Moon Jae-in, of the liberal Democratic Party of Korea. A civil rights lawyer (and former Special Forces paratrooper during his military service), Moon was the campaign manager and chief of staff for his friend and political mentor, former president Roh Mu-hyun (February 2003 to March 2004 and May 2004 to February 2008). </p>
<p>A year after he left office, Roh died by jumping off a mountain cliff; his brother was indicted for corruption, and he and other members of his family had been under investigation. </p>
<p>Despite his ties to Roh, if Moon still manages to win the election by riding the wave of opprobrium against Park’s conservative Liberal Korea Party, he will <a href="http://www.scmp.com/news/asia/east-asia/article/2078081/moon-jae-could-become-south-koreas-next-leader-he-too-soft-job">confront serious domestic and foreign policy challenges</a>. </p>
<h2>A broad mandate</h2>
<p>Moon’s potential mandate will encompass his calls for <a href="https://theconversation.com/lessons-from-samsung-and-south-korea-in-cracking-down-on-corruption-74383">reform of conglomerates</a>, known in South Korea as <em>chaebol</em>. The head of the biggest of these conglomerates <a href="https://www.theguardian.com/technology/2017/feb/17/choi-gate-samsung-heir-lee-jae-yong-formally-arrested-for-corruption">Lee Jae-yong was arrested in February</a> for allegedly paying millions of dollars in bribes to Park’s friend and key player in the scandal Choi Soon-sil, who is also in custody. </p>
<p>Moon will need to address the nation’s worsening economic inequality, as well as employment insecurity and subsequent cost-of-living pressures that <a href="https://www.bloomberg.com/news/articles/2016-12-09/korea-s-park-impeached-as-protesters-vent-anger-over-corruption">lay behind the public outrage</a> and mass demonstrations which led to Park’s ousting.</p>
<p>In foreign affairs, <a href="http://www.japantimes.co.jp/news/2017/03/11/national/politics-diplomacy/parks-downfall-muddles-japans-options-comfort-women-issue-north-korea/#.WNotARJ968V">Moon may seek to renegotiate the deal</a> made by Park’s government at the end of 2015 with Japan, which promised compensation payments for the wartime abuse of Korean women as sex slaves (euphemistically known as “comfort women”). The deal is already under strain, as Japan’s ambassador to South Korea was recalled in February <a href="https://theconversation.com/japan-and-south-koreas-latest-row-could-have-deeper-consequences-71044">over a statue commemorating the sex slaves</a> being placed outside the Japanese consulate in Busan. Similar statues have since appeared in other cities around the world.</p>
<p>Any deterioration in relations between Japan and South Korea will again frustrate long-running <a href="http://www.asahi.com/ajw/articles/AJ201703230047.html">diplomatic efforts by the United States to reconcile</a> its key Northeast Asian military allies. <a href="http://mainichi.jp/english/articles/20161124/p2a/00m/0na/008000c">Recently increased security cooperation</a>, particularly in intelligence sharing, may also be under threat.</p>
<p>The most significant foreign policy issue to confront Moon will be relations with the ever-belligerent Democratic People’s Republic of Korea (DPRK), and the <a href="http://www.koreatimes.co.kr/www/news/nation/2016/09/120_213610.html">US deployment to South Korea of the Terminal High Altitude Area Defense</a> (THAAD) anti-ballistic missile system, decided on by the Obama administration in July 2016. </p>
<p>Moon has expressed a <a href="http://www.japantimes.co.jp/news/2017/03/12/asia-pacific/politics-diplomacy-asia-pacific/ex-special-forces-soldier-top-presidential-aide-moon-lead-replace-ousted-south-korean-leader/">desire to improve relations with the North</a>, and said he is willing to visit Pyongyang to do so. This raises the prospect of <a href="https://www.nobelprize.org/nobel_prizes/peace/laureates/2000/dae-jung-facts.html">restoring the “Sunshine policy” of the Kim Dae-jung</a> (1998-2003) and Roh Mu-hyun governments, which <a href="http://thediplomat.com/2016/07/when-sunshine-ruled-on-the-korean-peninsula/">saw extensive trade relations</a> between the two separated countries from 1998 to 2008, including significant investment by South Korean companies, and family reunions and tourist visits to the North. </p>
<h2>Regional implications</h2>
<p>Under the oppressive rule of its authoritarian leader Kim Jong-un, North Korea would certainly exploit Moon’s ambivalent position on THAAD. Along with a rowdy anti-THAAD protest movement in South Korea, <a href="http://www.cnbc.com/2017/03/12/new-south-korean-president-may-warm-to-north-korea.html">Kim could press for him to withdraw it</a> as a precondition for any chance of resuming improved relations.</p>
<p>THAAD is also firmly resisted by China, which fears the system’s powerful radar will be <a href="http://contemporarysecuritypolicy.org/2017/02/07/what-really-bothers-china-about-thaad-missile-defense/">used to monitor and potentially interdict</a> its own strategic missile forces. <a href="http://www.eastasiaforum.org/2017/03/30/russias-stake-in-the-thaad-debate/">Russia is similarly opposed</a>, despite US declarations that THAAD is solely to counter the North Korean missile threat. </p>
<p>There is hence a risk that THAAD deployment may encourage China, North Korea, and Russia to <a href="http://www.popularmechanics.com/military/weapons/a25752/all-about-thaad-the-missile-killer-straining-us-south-korean-chinese-ties/">expand their nuclear arsenals further</a>. </p>
<p>China has already taken a hostile posture towards South Korea over THAAD. <a href="https://www.businessinsider.com.au/china-south-korea-economic-boycott-protests-over-thaad-missile-system-2017-3?r=US&IR=T">Various products and services from the country</a>, including highly popular television dramas and tours by K-pop performers have been banned; boycotts by Chinese tourists are being encouraged; and stores run in China by the <em>chaebol</em> Lotte have been closed for “safety inspections”. South Korea has <a href="http://www.reuters.com/article/us-southkorea-china-thaad-idUSKBN16R03D">protested these actions</a> to the World Trade Organization. </p>
<p>Moon is thus already under immense pressure from China, which poses a dire threat to any prospect of the economic recovery he hopes to restore. Should he become president, Moon will certainly head off promptly to Beijing in an attempt to assuage China’s concerns. </p>
<p>Meanwhile, the powerful South Korean military and intelligence service, the KCIA, would likely join the US <a href="https://www.nytimes.com/2017/03/07/world/asia/thaad-missile-defense-us-south-korea-china.html?_r=0">in trying to convince Moon to hold firm</a> on THAAD deployment.</p>
<h2>North Korean concerns</h2>
<p>On his first trip to Asia – covering Japan, South Korea and China – North Korea’s missile threat was US Secretary of State Rex Tillerson’s dominant concern. Tillerson declared in Tokyo and Seoul that past US policy towards North Korea had failed, and <a href="http://www.sbs.com.au/news/article/2017/03/16/tillerson-says-new-approach-needed-denuclearising-north-korea">a “new approach” was needed</a>. </p>
<p>Although no further details were offered, Tillerson stated that “all options were on the table”, implying that <a href="http://www.latimes.com/nation/la-fg-tillerson-asia-20170317-story.html">preemptive military strikes by the US against North Korea</a> may be under consideration.</p>
<p>The recent series of North Korean missile tests is already the most pressing foreign policy issue confronting the Trump administration in Asia. In 2016, North Korea conducted 24 missile tests, and two nuclear weapon tests, in <a href="https://www.un.org/press/en/2016/sc12603.doc.htm">repeated violation of United Nations Security Council resolutions</a>. </p>
<p>The first test of 2017 was conducted on February 11, during <a href="https://theconversation.com/has-abe-got-trumps-measure-golf-diplomacy-puts-japan-back-on-the-green-72739">Japanese Prime Minister Shinzo Abe’s visit</a> to the United States. On March 6, a salvo of four missiles was launched by North Korea towards the Sea of Japan, <a href="http://www.japantimes.co.jp/news/2017/03/09/national/politics-diplomacy/north-korean-missile-splashdown-closest-far-japans-mainland-government-says/">landing the closest so far</a> to the main Japanese islands. The <a href="http://edition.cnn.com/2017/03/06/asia/thaad-arrival-south-korea/">US began deployment of the THAAD system</a> in South Korea a day later.</p>
<p>The most recent missile test on March 22 was <a href="http://www.aljazeera.com/news/2017/03/north-korea-fails-missile-test-south-170322041232058.html">said by the US and South Korea to have been a failure</a>. It came just after North Korea declared a <a href="http://www.abc.net.au/news/2016-03-24/north-korea-claims-successful-solid-fuel-rocket-engine-test/7274542">successful test of a solid-fuel rocket engine</a>, which is vital to its plans for developing operational intercontinental ballistic missiles and submarine-launched ballistic missiles. These would – theoretically, at least – be capable of reaching mainland United States.</p>
<p>But despite US President Donald Trump’s recent condemnation of North Korea “<a href="http://time.com/4706269/trump-north-korea-kim-acting-badly/">acting very, very badly</a>”, his administration is confronted with the same dilemma faced by all others since armistice was declared in the Korean War in 1953.</p>
<p>Any military action to punish North Korea risks escalation into a massively destructive war that could engulf South Korea and Japan, and threaten the stability of the Asia-Pacific region and the global economy. While the DPRK would face its own destruction in such a scenario, <a href="https://theconversation.com/north-korea-and-the-dangers-of-trumps-diplomacy-free-asia-strategy-74494">it has long calculated</a> that the US would not risk such an escalation.</p>
<p>A withdrawal of THAAD from South Korea would be a clear strategic gain for North Korea, China, and Russia. To compensate, the United States would have no alternative but to deploy it to Japan, something Prime Minister Shinzo Abe would be more than happy with. </p>
<p>Beyond her own personal humiliation, the ramifications of Park’s fall are already reverberating from domestic South Korean politics into the fraught geopolitics of Northeast Asia.</p><img src="https://counter.theconversation.com/content/74980/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Craig Mark does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Beyond her own personal humiliation, the ramifications of Park’s fall are already reverberating from domestic South Korean politics into the fraught geopolitics of Northeast Asia.Craig Mark, Professor, Kyoritsu Women's UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/743832017-03-13T14:35:31Z2017-03-13T14:35:31ZLessons from Samsung and South Korea in cracking down on corruption<figure><img src="https://images.theconversation.com/files/160496/original/image-20170313-19247-1r0ipby.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Protestors in South Korea calling for punishment.</span> <span class="attribution"><span class="source">Sagase48 / Shutterstock.com</span></span></figcaption></figure><p>South Korea’s scandal-plagued president, Park Geun-hye has been <a href="https://mobile.nytimes.com/2017/03/09/world/asia/park-geun-hye-impeached-south-korea.html">forced from office</a>. Park was impeached by the country’s constitutional court <a href="https://www.engadget.com/2017/03/09/samsung-linked-scandal-takes-down-south-koreas-president/">over accusations</a> that she helped a friend win bribes from Samsung and other South Korean conglomerates. </p>
<p>The impeachment follows swiftly on from the arrest of Lee Jae-yong, the de-facto head of Samsung, the country’s biggest conglomerate. He is <a href="http://www.bbc.co.uk/news/business-39214545">on trial</a> for a string of corruption charges, including bribery and embezzlement, linked to Park’s impeachment. He has denied any wrongdoing.</p>
<p>Prosecutors allege that Lee donated 41 billion won (US$36m) to non-profit organisations linked to Park’s close friend and advisor, Choi Soon-sil, to secure government support for a merger that would help him to the top of the Samsung group. </p>
<p>Choi, meanwhile, is in detention, accused of using her personal ties with the president to <a href="https://www.theguardian.com/world/2016/nov/20/choi-gate-prosecutors-accuse-south-korean-president-of-collusion">meddle in state affairs</a> and encourage local firms to also donate millions of dollars to non-profit foundations under her control. </p>
<p>All parties deny having done anything wrong. But for a country that ranked the 37th least corrupt out of 167 nations in the <a href="https://www.transparency.org/cpi2015/">Corruption Perceptions Index 2015</a>, this is a major blow. And South Koreans are up in arms – <a href="https://theconversation.com/south-korean-protests-the-first-to-bring-down-a-president-in-a-long-history-of-civic-activism-69162">hundreds of thousands</a> have protested over the reports of corruption and called for Park’s impeachment. </p>
<h2>The mechanics of corruption</h2>
<p>Extensive conflicts of interests, intricate webs of connections and widespread clientelism – where goods or services are exchanged for political support – are the distinctive features of corruption. And they are all too common in the <a href="http://harvardlawreview.org/2010/11/on-political-corruption">political world</a> across the globe. </p>
<p>In the absence of proper regulations and <a href="https://www.routledge.com/The-Globalization-of-Corporate-Governance/Dignam-Galanis/p/book/9781138272750">corporate governance measures</a>, intimate relationships between economics and politics can lead to corruption. The mechanics is simple and intuitively understandable: through the exchange of favours between business and government, the former can distort political outcomes as a result of the undue influence of their vast wealth. </p>
<p>Besides the devastating effects that corruption may produce on <a href="http://www.worldbank.org/en/topic/governance/brief/anti-corruption">the poor and the economic growth</a>, the distortion of political outcomes may also exert a series of adverse effects on daily business practice. The advantages that a company may gain from a corrupt political system can harm competition. Not only is it bad for competitors, it tends to harm consumers too, as lack of competition <a href="http://www.imf.org/external/pubs/ft/fandd/basics/suppdem.htm">typically drives up prices</a>.</p>
<h2>Culture change</h2>
<p>To counter a distorted relationship between business and government, it is not enough to wait until criminal prosecutions are possible. Not least because there is a whole grey area in which businesses can legitimately influence politics – through <a href="https://www.theguardian.com/politics/2014/mar/12/lobbying-10-ways-corprations-influence-government">lobbying</a>. </p>
<p>Instead, we need to change the way in which companies operate and enhance a culture of anti-corruption. For instance, it could be possible to impose on corporations a transparency rule where they must publicly declare if they or their lobbyists, directly or indirectly, have on the payroll former politicians or public officials’ close relatives.</p>
<p>The way that corporations are structured is also an important factor in how open they to corruption. Most companies are organised according to a military model, which is incredibly hierarchical. They adopt a <a href="http://www.nuff.ox.ac.uk/users/klemperer/IO_Files/production,%20information%20costs%20Alchian%20and%20Demsetz.pdf">logic of control</a>, which encourages loyalty and obedience to superiors and the company as a whole, but dissuades individualism. These kinds of <a href="https://chomsky.info/20000516/">tyrannical structures</a> foster a culture that passively accepts misconduct. </p>
<p>A recent example of this is Rolls Royce, which recently paid £671m to settle bribery claims that dogged the company for years. An <a href="https://www.judiciary.gov.uk/wp-content/uploads/2017/01/sfo-v-rolls-royce.pdf">investigation by the UK’s Serious Fraud Office</a> into the company revealed that it had an extremely hierarchical and disciplined structure, which ensured high levels of internal confidentiality and facilitated corrupt practices for several years.</p>
<p>If this is true, the particular corporate structure of Samsung could well have played a role in the present scandal. Samsung is a business conglomerate characterised by the <a href="http://openscholarship.wustl.edu/law_globalstudies/vol1/iss1/6/">concentration of economic power</a>. In fact, in South Korean culture it is called a chaebol, <a href="https://www.cnet.com/news/the-chaebols-the-rise-of-south-koreas-mighty-conglomerates/">which means dynasty</a>. </p>
<p>Chaebols have been <a href="https://lens.blogs.nytimes.com/2015/11/13/samsung-and-the-south-korean-success-story/?_r=0">central to the success</a> of South Korea’s development and economy today. Each one is controlled by a founding family that, although typically holds only a small portion of the total equity, exerts an unchallenged power within the group. The chairmen are absolute rulers and key managerial posts are almost always given to their relatives. It is this kind of culture of unswerving loyalty that <a href="https://www8.gsb.columbia.edu/apec/sites/apec/files/files/discussion/PSLee.PDF">research indicates</a> makes it easy for a company’s top management to be enmeshed in corrupt practices.</p>
<p>If we want really to fight corruption in the business world we must also have the courage to transform the internal structure of big companies. Their efficiency must be safeguarded, but the individualism and accountability of employees must be enhanced at the same time.</p><img src="https://counter.theconversation.com/content/74383/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Costantino Grasso does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Fighting corruption in the business world requires transforming the internal structure and culture of big companies.Costantino Grasso, Lecturer in Business Management and Law, University of East LondonLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/700312016-12-08T19:30:16Z2016-12-08T19:30:16ZSupreme Court: Design patents are worth less, but we won’t tell you how much<figure><img src="https://images.theconversation.com/files/149307/original/image-20161208-31405-1gcezdq.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><a class="source" href="https://upload.wikimedia.org/wikipedia/commons/d/d8/USSupremeCourtWestFacade.JPG">Matt Wade</a>, <a class="license" href="http://creativecommons.org/licenses/by-sa/4.0/">CC BY-SA</a></span></figcaption></figure><p>When the Supreme Court took up Apple’s case alleging Samsung had stolen its patented iPhone designs for Samsung’s own smartphones, product designers, lawyers and corporate executives were paying close attention. The case promised to shed new light on a relatively unexplored area of patent law – design patents. </p>
<p>As distinct from what are called “utility patents,” design patents don’t protect how a device functions, but rather <a href="https://theconversation.com/do-you-buy-a-smartphone-for-its-curves-do-you-buy-a-car-for-its-cup-holders-66970">what it looks like</a>. A federal jury had declared in 2012 that <a href="https://www.supremecourt.gov/opinions/16pdf/15-777_7lho.pdf">Samsung had in fact infringed on Apple’s design patents</a> by copying elements of the iPhone’s design, including <a href="http://www.scotusblog.com/wp-content/uploads/2016/01/Apple-v-Samsung.pdf">rounded corners of the device and the “chiclet” layout</a> of icons on the screen. When someone infringes a design patent, the law requires that person to pay the patent owner “the extent of his total profit” of the “<a href="https://www.law.cornell.edu/uscode/text/35/289">article of manufacture</a>” found to be infringing.</p>
<p>Last year, a <a href="http://www.scotusblog.com/wp-content/uploads/2016/01/Apple-v-Samsung.pdf">federal appeals court had ruled</a> that the law required Samsung to turn over to Apple all the profits it had made on its smartphones – <a href="https://www.supremecourt.gov/opinions/16pdf/15-777_7lho.pdf">a whopping US$399 million</a>. That ruling was despite the obvious fact that the design patent violations formed only part of the phones’ attraction to consumers, and therefore only part of the basis for Samsung’s profits. The appellate court felt constrained by the language of the statute, however.</p>
<p>Samsung appealed to the Supreme Court, and, despite a rough few months with other problems – including <a href="http://www.cnn.com/2016/10/11/tech/samsung-note-7-fire-risks/">exploding phones</a> and a <a href="http://www.cafc.uscourts.gov/sites/default/files/opinions-orders/15-1171.Opinion.9-30-2016.1.PDF">reinstated patent infringement verdict in another case</a> – came out a winner. On Dec. 6, the court ruled that it was unreasonable to require Samsung to fork over all its smartphone profits. </p>
<p>But the justices deliberately “<a href="https://www.supremecourt.gov/opinions/16pdf/15-777_7lho.pdf">declined to lay out</a>” any guidance for how to calculate a reasonable amount. As such, they reduced the value of design patents to their owners, which could encourage third parties to go ahead and risk infringing these patents. Minimally, the ruling’s ambiguity ensures the case will drag on for years more, potentially even ending up back in the Supreme Court.</p>
<h2>Leaving a major question unanswered</h2>
<p>The Supreme Court was asked to decide, effectively, what an “article of manufacture” is. Is it the entire final product – Samsung’s smartphone with preinstalled software, as sold to the consumer? Or is it something less, such as the screen?</p>
<p>Instead, they ducked the question except in its broadest and vaguest form. The justices ruled that the article of manufacture could be something other than the entire product, but did not tell us how much less. In the court’s own words, “the term ‘article of manufacture’ is broad enough to encompass <a href="https://www.supremecourt.gov/opinions/16pdf/15-777_7lho.pdf">both a product sold to a consumer as well as a component of that product</a>.”</p>
<p>And that’s all it said.</p>
<p>The Supreme Court offered no suggestion as to how other courts in this case or future ones should divide a product to assess what is the relevant portion of the product. All we know is that they will have to do so.</p>
<h2>A two-part problem</h2>
<p>There are two distinct issues with which the the lower courts will have to wrestle. And if they get it wrong, it could end up back at the Supreme Court again. First, the courts will have to determine what exactly is the “article of manufacture” relating to patented designs. If it isn’t the entire phone, then what part of the phone is relevant?</p>
<p>Second, once the courts have drawn that difficult line, they will then have to figure out how much of Samsung’s profits can be attributed to that slice of the product. In other words, how much value does that portion of the product have? </p>
<p>It is not clear how either of those apportionments will take place. The courts may look to the cousin of design patents – utility patents. Although the analysis in the design patent context is technically different, the result is the same: The court must determine how much value the patented design added to the product. In the context of utility patents, courts have made similar analyses when determining the value of an invention that is a component of a broader product.</p>
<p>For example, in one case, an appellate court had to determine how much value the <a href="http://www.cafc.uscourts.gov/sites/default/files/opinions-orders/08-1485.pdf">graphical “date picking” function in Microsoft Outlook</a> added in terms of the entire software product. But guidance from those cases remains elusive as well because every invention and market is likely different. The value added from the invention will depend on myriad factors, such as the importance of the invention to the product and what aspects of the product drive consumer demand. These fact-intensive inquiries do not lend themselves to standardized rules that will be easy for courts to apply uniformly in multiple cases.</p>
<h2>Design patents’ value drops</h2>
<p>At best, there are two clear takeaways from the Supreme Court’s decision. First, patent holders are not necessarily entitled to the infringer’s profits from the actual product sold. A court may divide the product up into different articles of manufacture in order to assess the appropriate damages. In some cases, patent owners still may be able to get profits for the entire product, but it is no longer a guarantee. </p>
<p>Second, somewhat ironically, design patents have now lost some value. This is specifically because patent holders are not entitled to the profits from the entire infringing product. At times, they may get only a fraction of that amount. Consequently, on average, this case reduces the value of design patents.</p>
<p>This outcome is a bit ironic because, as the Supreme Court itself recognized, Congress long ago – in 1887! – passed the profits statute precisely because courts had <a href="https://www.supremecourt.gov/opinions/16pdf/15-777_7lho.pdf">gutted the value of design patents</a> by awarding insufficient damages.</p>
<h2>Interpreting a lack of guidance</h2>
<p>At the time Congress adopted the forfeiture of the design patent infringer’s profits as the measure of damages, there generally was a one-to-one correspondence between a design and a product. For example, a design patent on a carpet corresponded to the actual product itself.</p>
<p>In the modern era, a single product can have a number of patentable design features. Think about cars: The car itself can have various design shapes, along with aspects of the interior, the arrangement of a computer screen in the car and even the cup holders. Any one of these affect the value of the car to some degree.</p>
<p>Congress likely did not foresee this development when it tried to reinvigorate design patents by providing the infringer’s profits as the remedy. Nevertheless, the Supreme Court reasonably believes the efforts of Congress to breathe value into design patents are no longer appropriate in a world of complex products. The statute, in essence, is a product of a time long since gone. Interestingly, though, the court decided to make this adjustment; it did not leave it to Congress to adapt the statute to modern markets.</p>
<p>How much damage has been done to design patents’ value? It will depend on how willing courts are to “slice and dice” an infringing product to determine what the relevant “article of manufacture” is.</p>
<p>It will also depend on how much courts attribute the value of the product to that slice of the product. If the courts permit large slices of the profits to be handed over to the patent owner, then the value of design patents will remain high, if somewhat reduced. But if the ruling means the penalty for infringement is reduced, competitors may be more willing to take the risk of infringing someone else’s design.</p>
<p>There is no doubt that the Supreme Court’s decision reduces the value of design patents. We will have to wait and see – perhaps for another case to come to the highest court in the land – to find out just how much.</p><img src="https://counter.theconversation.com/content/70031/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Timothy Holbrook joined an amici brief at the Supreme Court in this case.</span></em></p>The ruling in the Apple-Samsung case is ambiguous, ensuring the case will drag on for years more, potentially even ending up back in the Supreme Court.Timothy Holbrook, Professor of Law, Emory UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/675002016-10-31T02:13:12Z2016-10-31T02:13:12ZWhat do cheerleader uniforms and smartphones have in common?<p>Cheerleader uniforms, with their bright colors and striking patterns, are intended to arouse school spirit and showcase athletic prowess. This seems a world apart from the technologically sophisticated field of smartphones, which allow us to find obscure information, socially interact and transact business while on the go.</p>
<p>But these two consumer products have one key feature in common. They both embody an essential aspect of what makes modern products successful: design. </p>
<p>Consumers are <a href="http://www.marketwired.com/press-release/survey-shows-consumers-attracted-to-physique-of-new-iphone-1691114.htm">increasingly attracted</a> to distinctive design over functionality in products as diverse as coffee pots and ride-sharing apps. The growing importance of innovative design in functional products is causing businesses to claim protection of their intellectual property (IP) rights in ways that stretch the limits of existing law.</p>
<p>In view of the changing consumer marketplace, it is not surprising that cheerleader uniforms and smartphones are before the Supreme Court this term. These two cases may reshape our current boundaries of intellectual property law, altering the choices that consumers have in the marketplace and the manner in which businesses compete.</p>
<p>As business law professors specializing in the <a href="http://www.e-elgar.com/shop/the-changing-face-of-us-patent-law-and-its-impact-on-business-strategy">impact of patent law on business strategy</a> with a combined 35 years’ experience teaching intellectual property law to future managers, we were intrigued by the question of IP design protection that appears in these two seemingly dissimilar cases. This is precisely the type of emerging legal issue that successful businesses must identify early and craft strategies to address.</p>
<h2>Design vs. utility</h2>
<p>Traditionally, the mainstay of American intellectual property protection has been <a href="https://www.law.cornell.edu/patent/35uscs101.html">utility patents</a>. </p>
<p>These are very strong but limited (in terms of time and subject matter) property rights issued by the <a href="http://www.uspto.gov">United States Patent and Trademark Office</a> to protect useful inventions. Many of the features of your smartphone, for example, are covered by utility patents (whether owned by the manufacturer or licensed from another company). </p>
<p>Design patents, copyrights and trademarks, on the other hand, are available to protect aesthetic features, but only to the extent that those features are not functional. The <a href="https://www.law.cornell.edu/patent/patent.overview.html">Patent Act</a>, for example, draws a clear distinction along these lines between utility and <a href="https://www.law.cornell.edu/patent/35uscs171.html">design patents</a>. The <a href="http://www.copyright.gov/title17/">Copyright Act</a> extends copyright protection only to those design features that are independent and separable from <a href="https://www.law.cornell.edu/uscode/text/17/101">“the utilitarian aspects of the article.”</a> In the trademark area, a <a href="https://scholar.google.com/scholar_case?case=12704680276957369308&q=traffix+devices+v+marketing+displays&hl=en&as_sdt=80000006">2001 Supreme Court decision</a> confirmed that functional designs may not receive a federal trademark registration.</p>
<p>This functional/nonfunctional divide means that there can be no overlap between utility patents and the other forms of intellectual property protection. However, design patents, copyrights and trademarks can overlap and be used creatively by businesses to ensure maximum legal protection. The classic Coca-Cola bottle, for example, was originally covered by a design patent and is now trademarked. Similarly, the iconic <a href="https://en.wikipedia.org/wiki/Troll_doll">Dam Troll doll</a> was originally protected through both design patent and copyright.</p>
<h2>The Supreme Court steps in</h2>
<p>Consumer electronics titan <a href="http://fortune.com/2016/10/10/apple-supreme-court-samsung/">Apple is pursuing a design patent infringement case</a> against rival Samsung Electronics for alleged theft of its smartphone inventions and designs.</p>
<p>According to Apple, its elegant <a href="http://www.apple.com/iphone/">iPhone</a> shape and distinctive graphical icon display was copied by Samsung in an attempt to free-ride on Apple’s success. Samsung responded that its decision to incorporate similar design elements was dictated by the function of a smartphone and need for it to fit in a pocket. </p>
<p><a href="http://fortune.com/2015/12/04/samsung-pay-apple-patents/">Samsung lost at trial</a> in 2012 and was assessed damages of over US$1 billion (later reduced). The part of the case related to Apple’s design patents was appealed to the Supreme Court. The question for the court was whether Apple’s damages should be based on sales of the entire, functional phone or just the value added by aspects of the design embodied by Apple’s patents (the rounded, rectangular shape and distinctive screen icons). </p>
<p>Fundamentally, the case is about the need to separate – and value – consumer interest in the functional from the aesthetic. <a href="http://www.scotusblog.com/case-files/cases/samsung-electronics-co-v-apple/">Samsung Electronics Co. v. Apple</a> was heard by the Supreme Court on Oct. 11, with the decision expected later this term.</p>
<p>In <a href="http://www.scotusblog.com/case-files/cases/star-athletica-llc-v-varsity-brands-inc/">Star Athletica v. Varsity Brands</a>, athletic wear producer Varsity is seeking to protect its distinctive cheerleading uniform designs through copyright law. Varsity <a href="http://www.insidecounsel.com/2016/05/18/star-athletica-llc-vs-varsity-brands-case-continue">routinely registers</a> its stripes, chevrons and color block designs with the <a href="http://www.copyright.gov">U.S. Copyright Office</a>. When Varsity discovered that a competitor, Star Athletica, was selling uniforms with similar designs, it sued. Star Athletica countered that these design features are inseparable from the function of cheerleader uniforms. </p>
<p>Although this dispute appears straightforward – is one firm profiting from the theft of another’s creativity? – the framework for deciding is actually quite elusive (or, in the words of the lower appellate court, “<a href="https://scholar.google.com/scholar_case?case=6647443193299993535&q=star+athletica&hl=en&as_sdt=80000006">the law in this area is a mess</a>”). If we give Varsity too much control over the basic design elements of sports uniforms, how will other companies be able to compete and offer a choice to consumers? But if we don’t protect Varsity’s interest in its designs, what incentives does it have to continue to innovate and create?</p>
<p>The Supreme Court will hear oral argument in the case on Oct. 31.</p>
<h2>The blurring of form and function</h2>
<p>Is it a coincidence that the Supreme Court is deciding two cases involving intellectual property protection of design in a single term? </p>
<p>This is the first design patent case heard by the court <a href="https://scholar.google.com/scholar_case?case=3827183348270548637&q=dobson+v.+hartford+carpet&hl=en&as_sdt=80000006">in over 100 years</a>. And it is the first time the court has looked at copyright in the design aspects of functional items <a href="https://scholar.google.com/scholar_case?case=11977251527545760686&q=mazer+v+stein&hl=en&as_sdt=80000006">in over 60 years</a>.</p>
<p>It’s no coincidence. Rather, the court’s docket mirrors the realities of the consumer marketplace. The <a href="http://journals.ama.org/doi/abs/10.1509/jm.15.0036">literature</a> suggests that consumers are increasingly motivated by design when making their purchasing decisions. This is particularly true when the competing products <a href="http://www.sciencedirect.com/science/article/pii/S1057740810000768">share increasingly similar functional characteristics</a>. How a product looks, in addition to how it functions, <a href="http://journals.ama.org/doi/abs/10.1509/jm.14.0199">is becoming increasingly important to consumer choice</a>. </p>
<p>At the same time, businesses are finding that technological advances in production methods and materials enable them to employ more innovative designs, which further feeds consumer interest.</p>
<p>On the other hand, technology also enables competition. Low-cost copying and production from China and elsewhere, inexpensive contract manufacturing that permits designs to be easily sourced from parts manufacturers and low-cost 3-D printing have lowered barriers to entry. Businesses can no longer rely solely upon R&D, manufacturing skill, efficiency or first-mover advantages to protect their competitive advantage.</p>
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<img alt="" src="https://images.theconversation.com/files/143818/original/image-20161030-15810-fx50m9.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=237&fit=clip" srcset="https://images.theconversation.com/files/143818/original/image-20161030-15810-fx50m9.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=360&fit=crop&dpr=1 600w, https://images.theconversation.com/files/143818/original/image-20161030-15810-fx50m9.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=360&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/143818/original/image-20161030-15810-fx50m9.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=360&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/143818/original/image-20161030-15810-fx50m9.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=452&fit=crop&dpr=1 754w, https://images.theconversation.com/files/143818/original/image-20161030-15810-fx50m9.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=452&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/143818/original/image-20161030-15810-fx50m9.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=452&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
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<span class="caption">The courts are trying to determine whether a Direct Technologies flash drive with the design of Electronic Arts’ Sims Plumbob icon can qualify for copyright protection.</span>
<span class="attribution"><a class="source" href="https://www.flickr.com/photos/kriisi/6156436984/in/photolist-5CVND5-6N5k9s-4z54Em-6ypBtY-6EFuwN-7KAbK1-87RQKV-87V3gL-doLihk-9R3J3F-6uT36D-4EUxqk-6uX83s-7Q3Dzc-6okNH2-6HjM9D-h1pGT-8p2tNG-cs95KG-ao2mef">Kirsi L-M via flickr</a>, <a class="license" href="http://creativecommons.org/licenses/by-nc-nd/4.0/">CC BY-NC-ND</a></span>
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<p>As a result, protection of product appearance through copyright, design patents and trademark is of growing importance to consumer product industries. The lower courts are seeing numerous cases in this area, such as disputes over trademark rights in the <a href="http://www.businesswire.com/news/home/20160627005384/en/Skechers-Scores-Major-Victory-Trademark-Dispute-Converse">design of Chuck Taylor shoes</a>, <a href="http://www.lexology.com/library/detail.aspx?g=4c840d4b-3ad9-4cce-b1ab-9573bd736681">design patent rights in inflatable lounge chairs</a> and the copyright in <a href="http://www.lexology.com/library/detail.aspx?g=72fad203-6055-4ef5-bccc-0c1e7dbd3518">a flash drive design based upon the Sims Plumbob icon</a>. </p>
<h2>The perils of expansive design rights</h2>
<p>Both consumers and businesses have reason to be concerned about the ramifications of aggressive expansion of IP protection of design in functional products. </p>
<p>Pro-IP rights decisions by the court in Samsung v. Apple and Star Athletica v. Varsity Brands could strengthen the intellectual property rights of the first business to create (or seek to protect) a design, but at the expense of competition and consumer choice. Utility patents are expensive to obtain and maintain, subject to rigorous examination and have relatively short time limits. If companies can use more easily obtainable aesthetic design rights to avoid the deliberate legal hurdles against functional protection, they can limit competition, leading to higher prices and fewer options in the marketplace for consumers.</p>
<p>Unfortunately, the solution is not as simple as denying intellectual property protection to the design features of functional products. Without some protection, competitors can easily appropriate the market share earned by those who invest in innovative design. </p>
<p>Taken to an extreme, a complete disconnect between function and form could enable counterfeiting and piracy. This is particularly true if some consumers are willing to accept a trade-off of lower quality or functionality of a <a href="http://www.reuters.com/article/us-jaguar-land-rover-china-lawsuit-idUSKCN0YP1JJ?feedType=RSS&feedName=businessNews&utm_source=Twitter&utm_medium=Social&utm_campaign=Feed%3A+reuters%2FbusinessNews+%28Business+News%29">lookalike car</a> or <a href="http://www.dezeen.com/2015/03/25/ikea-faces-legal-action-over-alleged-copyright-infringement-melltorp-dining-emeco-norman-foster-20-06-stacking-chair/">chair</a> in exchange for a lower price.</p>
<p>Intellectual property policy represents a delicate balance between innovation incentives and competition. When that balance is disrupted or simply reset, it is everyone’s concern.</p><img src="https://counter.theconversation.com/content/67500/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>The authors do not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.</span></em></p>The Supreme Court is considering two cases stemming from the merger of design and function that could reshape intellectual property law. Can we protect innovation without impeding fair competition?Lynda J. Oswald, Professor of Business Law, University of MichiganDan Cahoy, Professor of Business Law, Penn StateLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/672722016-10-19T11:44:31Z2016-10-19T11:44:31ZSomething good could actually come from Samsung’s battery disaster<p>Most accidents caused by smartphones are caused by distracted drivers or pedestrians. But a phone that bursts into flames – as Samsung’s Galaxy Note 7s <a href="http://www.reuters.com/article/us-samsung-elec-smartphones-replacement-idUSKCN1180TV">have been doing</a> – comes with the scariness of uncertainty, especially when these fires take place in <a href="http://www.bbc.co.uk/news/technology-37570100">airplane cabins</a>.</p>
<p>From the <a href="http://www.samsung.com/uk/note7exchange/">publicly available information</a>, it doesn’t seem that Samsung knows the actual technicalities of the problem, and external experts <a href="https://www.cnet.com/uk/news/why-is-samsung-galaxy-note-7-exploding-overheating/">know even less</a>. This uncertainty could cause consumer confidence to wobble, which makes it vital for the whole industry to identify and fix the problem as quickly as possible. In the meantime, Samsung has warned the debacle could cost the company <a href="https://news.samsung.com/global/samsung-electronics-estimates-mid-3-trillion-won-negative-impact-for-q4-2016-and-q1-2017-due-to-galaxy-note7-discontinuation">more than £2 billion</a> over the next six months, on top of the costs of recalling millions of handsets.</p>
<p>The sheer scale of the problem could, however, be a unique opportunity to improve battery safety across the industry for the future. If Samsung made its faulty batteries available to researchers, it could effectively crowd-source work into why they went wrong. This would provide much-needed insight into how batteries and their manufacture could be improved.</p>
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<p>Scientists and engineers in battery research, both in industry and academia, have a closely related problem. Research on battery safety is more important than ever, but <a href="http://www.nrel.gov/docs/fy15osti/60745.pdf">it is very difficult</a> to get hold of batteries that are actually faulty. You can artificially introduce obstacles into a model production line, but then you are only investigating a self-created problem, which limits potential to learn new lessons. </p>
<p>The Note 7 recall could provide researchers with a huge batch of potentially faulty batteries. Samsung, with their millions of recalled handsets, could turn a corporate and environmental nightmare into a benefit for scientific research by initiating a global crowd-sourcing consortium of hundreds of academic battery laboratories.</p>
<h2>What’s the problem?</h2>
<p>One of the big questions is exactly what’s going wrong with the Note 7 batteries. A previous mass recall of faulty batteries by Sony in 2006 was down to the presence of <a href="http://www.pcworld.com/article/127637/article.html">small metal particles</a> left in the battery cells by the manufacturing process. As the battery was charged and discharged, or put under mechanical pressure, these particles led to the growth of little trees of metallic lithium known as dendrites in one of the electrodes. These eventually penetrated the battery’s other electrode and caused a short circuit. They then heated up like a wire in a traditional light bulb and ignited the flammable electrolyte in the cell, consuming oxygen from the positive electrode material.</p>
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<p>Nobody yet knows if the Note 7 battery has suffered a similar problem. Today’s battery technology has moved on, packing more energy into the same space than in 2006. Modern batteries are built using <a href="http://w3.siemens.com/markets/global/en/battery-manufacturing/applications/process/pages/default.aspx">advanced manufacturing techniques</a> that coat powerful thin layers of <a href="https://learn.sparkfun.com/tutorials/how-lithium-polymer-batteries-are-made">active electrode materials</a> onto thin aluminium and copper foils.</p>
<p>Metal particles of the kind that caused the problems back in 2006 – big rocks in relation to the tiny structures in today’s batteries – would cause modern batteries to fail before they leave the factory. But the Note 7 battery problem could be caused by much smaller dust-type particles, small voids in the electrode material or just <a href="http://www.nrel.gov/docs/fy15osti/60745.pdf">manufacturing inconsistencies</a>.</p>
<h2>Improving manufacturing</h2>
<p>All lithium ion batteries undergo the <a href="http://www.mpoweruk.com/battery_manufacturing.htm">so-called “formation”</a> process after the mechanical manufacturing. This involves charging and discharging them a fixed number of times in a way that forms <a href="http://www.mpoweruk.com/chemistries.htm#sei">internal protection layers</a> and allows any side-reaction to happen in a controlled way. Cells that show any irregularities will be recycled. But this process can’t (yet) detect symptoms that would point towards a future failure. We would only know about such a problem once hundreds of thousands of units have been manufactured.</p>
<p>But Samsung’s problem gives us an opportunity to study battery failure in much greater depth. This could allow us to improve future manufacturing technology and defect detection. By agreeing a portfolio of diagnosis methods with the firm, scientists around the world could find out what’s wrong with the faulty cells. They could also work out methods to spot problem cells before they dangerously heat up, and fix the production process accordingly and introduce a new post-production check.</p>
<p>The biggest problem perhaps would be Samsung’s guarding of its intellectual property, which may explain why the company <a href="http://www.wsj.com/articles/samsung-self-tested-its-batteries-1476659147">hasn’t had its Note 7 batteries tested externally</a> already, despite it being considered good practice in the industry. But the risk of corporate damage resulting from the disclosure of a few company secrets would arguably be much smaller than that caused to consumer confidence by battery failures on any future models.</p><img src="https://counter.theconversation.com/content/67272/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Harry Hoster receives funding from Engineering and Physical Sciences Research Council. </span></em></p>Hundreds of thousands of battery fires in Samsung Galaxy Note 7 handsets is a red hot opportunity to better understand what went wrong.Harry Hoster, Director of Energy Lancaster and Professor of Physical Chemistry, Lancaster UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/669512016-10-14T19:09:30Z2016-10-14T19:09:30ZWill Samsung forget its safety lessons as it moves beyond the Note 7 debacle?<figure><img src="https://images.theconversation.com/files/141592/original/image-20161013-31310-pchemh.jpg?ixlib=rb-1.1.0&rect=210%2C10%2C800%2C456&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><a class="source" href="https://www.flickr.com/photos/135518748@N08/27458903223/in/photolist-HeEURS-GsE9Pz-JvedyC-JzcNNi-HQs4gV-HQs4TX-vFMxxu-uws54G-MVuLSd-N3Beay-LkFpJq-JY44Zu-JR1Xg4-JR1VB2-KJxFcf-JR1C3p-KMochr-KEyEcB-JR1AP2-KmeJBd-JQLXHq-KEx396-JQYNRx-KJvJQS-KmeGgS-JQLUFJ-KJvGsf-JQLTX9-KJvFbs-JQYLqv-KJvEps-Kjijay-Jt93SF-GXRhoJ-GXRfJS-Ho6GDF-Ho6Esg-GsFjiH-Gsy1DE-Ho6qe6-GXQULL-Hh3bg4-GsEWUa-Hh32jr-HeFqM3-Hh1SrZ-GXPoqN-GsD3rB-Hk7RQJ-Hh1yvt">portal gda/Flickr</a></span></figcaption></figure><p>The massive recall of Samsung Note 7 smartphones, accompanied <a href="https://www.ft.com/content/58d215d4-8f69-11e6-a72e-b428cb934b78">by a halt to production</a> after reported battery fires is the latest in another year of breaking corporate scandals. The South Korean firm isn’t the first to experience safety problems as happened in this case – and it is a feature of corporate behaviour to let focus on this issue come and go in favour of other priorities.</p>
<p>The quagmire that Samsung finds itself in is of a different character to many other high-profile cases including Volkswagen’s <a href="https://theconversation.com/how-volkswagen-got-caught-cheating-emissions-tests-by-a-clean-air-ngo-47951">emission-cheating device</a> or the <a href="https://theconversation.com/how-wells-fargo-encouraged-employees-to-commit-fraud-66615">Wells Fargo fake account scandal</a>. For a start there appears to be nothing deliberate about Samsung’s faulty phone problem. And judging by appearance, its reactions to the ballooning scandal have been sincere, including its <a href="http://www.bbc.co.uk/news/business-37253742">previous decision to recall 2.5m Samsung Note 7 devices</a>. </p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/141595/original/image-20161013-31336-oj2wsg.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/141595/original/image-20161013-31336-oj2wsg.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/141595/original/image-20161013-31336-oj2wsg.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=281&fit=crop&dpr=1 600w, https://images.theconversation.com/files/141595/original/image-20161013-31336-oj2wsg.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=281&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/141595/original/image-20161013-31336-oj2wsg.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=281&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/141595/original/image-20161013-31336-oj2wsg.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=353&fit=crop&dpr=1 754w, https://images.theconversation.com/files/141595/original/image-20161013-31336-oj2wsg.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=353&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/141595/original/image-20161013-31336-oj2wsg.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=353&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
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<span class="caption">Tarnished image.</span>
<span class="attribution"><a class="source" href="https://www.flickr.com/photos/mynameispaul/2319745226/in/photolist-qJdgxB-qG65Cb-qrXt1Z-qJnPAF-qJnLTg-qG62Td-8rwYp4-4r1kip-4r5qDm-4r5qsE-4wZirm">Paul/Flickr</a>, <a class="license" href="http://creativecommons.org/licenses/by-nc-nd/4.0/">CC BY-NC-ND</a></span>
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<p>Rather than irresponsibility, Samsung appears likely to have underestimated some crucial safety issues. The company has reportedly worked very hard to implement cutting-edge technological features such as an <a href="https://news.samsung.com/global/everything-you-need-to-know-about-the-galaxy-note7s-iris-scanner">iris scanner</a> for improved security. </p>
<p>If it does turn out to be the case that the company temporarily took its eye off the ball on safety issues, it wouldn’t be alone. As it happens, large business organisations have a tendency to gradually <a href="http://amj.aom.org/content/53/3/451.abstract">“forget” safety routines or protocols</a> that have been put in place for accident prevention or safety improvement in favour of an increased focus on innovation or cost efficiency. </p>
<h2>Brand damage</h2>
<p>Whatever the outcome of Samsung’s investigations, the company now has to deal with the media commotion this scandal has attracted. This incident has not had especially dire consequences compared to other scandals – in VW’s case, for instance, the <a href="http/theconversation.com/the-not-so-invisible-damage-from-vw-diesel-cheat-100-million-in-health-costs-48296">health implications are on a grander scale</a>. In Samsung’s case, damage and injury are not to the fore, but there are two main characteristics. The first is the sheer scale of the recall: some estimates reckon <a href="http://www.reuters.com/article/us-samsung-elec-smartphones-costs-idUSKCN12B0FX">Samsung could end up losing around US$17 billion because of the recall</a>. </p>
<p>The nature of the Samsung case also has an impact in terms of perceptions and visibility. Damage <a href="https://www.cnet.com/news/why-is-samsung-galaxy-note-7-exploding-overheating/">has been limited</a>, but some effects have been extremely visible – and for many, scary. Several airlines, airports, and aviation bodies warned against or even <a href="http://whatson.ae/dubai/2016/09/the-samsung-galaxy-note-7-has-been-banned-on-board-uae-airlines/">banned the devices</a>, or insist they are turned off for the duration of the flight. There was <a href="http://www.nytimes.com/2016/10/06/business/southwest-samsung.html">one evacuation prior to take-off on a Southwest Airlines flight</a> due to smoke in the passenger section, emanating from a Samsung Note 7 device. Making people fear for their lives is guaranteed to provoke negative attention to a brand however effective and honest a company’s response might be.</p>
<p>What should Samsung do? Seeing as public attention is still very much on this issue, dealing with it robustly is important. A full recall has already been made, which is a signal to stakeholders that the company is taking the issue seriously. One video apology has already been made. Likely more will be needed, along with a promise to prevent such incidents from recurring. Some form of compensation may be in order.</p>
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<p>An apology certainly does not hurt when a company is clearly culpable. It may encourage the public to forgive – and possibly forget – faster. It was essentially with such manoeuvres that <a href="http://mobile.nytimes.com/2002/03/23/your-money/tylenol-made-a-hero-of-johnson-johnson-the-recall-that-started.html">Johnson & Johnson dealt with the far more serious Tylenol scandal in 1982</a>, in which cyanide-laced painkiller capsules left seven people dead. The company and the product were back on their feet in a matter of months. If Samsung successfully manages the PR, <a href="http://amr.aom.org/content/early/2015/09/08/amr.2014.0208.short">the public will likely forget the issue relatively quickly</a>, and the company’s long-term reputational damage will be negligible at worst.</p>
<h2>Break the pattern</h2>
<p>All of this, of course, depends on preventing similar problems from occurring in the future. For this, that tendency for safety routines to fall short of the required standard needs to be definitively addressed, and efforts made to make those routines stick – long term. </p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/141594/original/image-20161013-31310-19003xv.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/141594/original/image-20161013-31310-19003xv.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/141594/original/image-20161013-31310-19003xv.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=486&fit=crop&dpr=1 600w, https://images.theconversation.com/files/141594/original/image-20161013-31310-19003xv.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=486&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/141594/original/image-20161013-31310-19003xv.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=486&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/141594/original/image-20161013-31310-19003xv.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=611&fit=crop&dpr=1 754w, https://images.theconversation.com/files/141594/original/image-20161013-31310-19003xv.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=611&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/141594/original/image-20161013-31310-19003xv.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=611&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
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<span class="caption">The 1986 Challenger disaster.</span>
<span class="attribution"><a class="source" href="http://www.shutterstock.com/pic-245968618/stock-photo-space-shuttle-challenger-disaster-space-shuttle-exhaust-plumes-entwined-around-a-ball-of-gas-after-a-few-seconds-after-the-explosion-caused-by-ruptured-o-rings-jan-28-1986.html?src=5CjH1PHkxutQH6QBlJmEjQ-1-1">Everett Historical/Shutterstock</a></span>
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<p>This will not be easy. As time passes, organisations tend to oscillate back towards more innovation and efficiency and away from a safety-focused approach. They can forget the lessons they learned from these episodes, as observed in a recent longitudinal <a href="http://pubsonline.informs.org/doi/abs/10.1287/orsc.2015.1010">study of 146 pharmaceutical firms in the US</a>. Such a process was painfully experienced by US space agency NASA with the disintegration of the <a href="http://www.space.com/19436-columbia-disaster.html">Columbia shuttle</a> in 2003, after the tragic <a href="http://www.history.com/topics/challenger-disaster">Challenger shuttle accident</a> of 1986. While initially focusing on safety after the Challenger accident, efficiency slowly gained priority over the years. There was <a href="https://www.nasa.gov/columbia/home/CAIB_Vol1.html">a reduction in the number of safety personnel</a> and <a href="https://books.google.co.uk/books?hl=fi&lr=&id=wIfAU5exEPQC&oi=fnd&pg=PA33&dq=vaughan+columbia+2005&ots=DPy1ibuJxf&sig=f6-iCbaVekjtcQIuvtw6VurUUIY&redir_esc=y#v=onepage&q=vaughan%20columbia%202005&f=false">a general depreciation of organisational knowledge</a>, and a similar accident eventually followed. To avoid this type of reversion, Samsung will need to safeguard its safety routines from now on and embed the memory of the faults that lead to this incident. </p>
<p>This could be achieved through integrating safety training into recruitment and career development processes, by introducing safeguards against safety routines being overridden – and could even, in a brave and humble company, include an annual commemoration of the debacle as a lasting and powerful warning.</p><img src="https://counter.theconversation.com/content/66951/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Jukka Rintamäki receives funding from the European Commission as part of the Marie Skłodowska-Curie actions (MSCA). The funding is related to his continuing work on collective remembering and forgetting of corporate irresponsibility.</span></em></p>How can companies brought low by scandal or failure remember the lessons they should be learning?Jukka Rintamäki, Marie Curie Research Fellow, City, University of LondonLicensed as Creative Commons – attribution, no derivatives.