Topic > Apple Technology: The Story of Apple Inc - 1278

Government regulations had two main factors causing supply shifts for the company: environmental policies by international and local authorities, as well as labor costs and machinery (“Apple, Inc.: Supply, Demand and the Company's Financial Condition”). Supply can be defined as the willingness and ability of sellers to provide goods and services (Boone & Kurtz, 66). Companies were looking to provide safer working conditions and minimize the environmental impact of business operations, implementing more stringent policies where this could have an effect on supply. As explained in Ashley Phillips' article, “Apple Could Face Lawsuit Over 'Toxic' iPhones,” it is claimed that “a consumer watchdog group is considering legal action against Apple, after the release of a Greenpeace claiming the company's iPhone contains toxic chemicals” (Phillips). This negative publicity and investigation could empower authorities to interfere with labor and machinery costs. As a result, there could be a supply shift that would have short- and long-term consequences. Apple will face a decline in profits if production costs increase, which will cause the supply curve to shift to the left. The company will always experience a shift in the supply curve when there is a price change for both raw materials and production (“Apple, Inc.: Company Supply, Demand and Financial