One product more than any other is responsible for the fortunes of device maker Apple Inc.(NASDAQ: AAPL) -- its flagship iPhone. In the company's fiscal fourth quarter (which ended September 30, 2017), Apple attributed more than $28 billion, a full 54% of its $52 billion in revenue, to the iPhone. The company has pocketed hundreds of billions of dollars from sales of this device alone.
Now, a pension fund, an activist investor, a prominent musician, and medical researchers have banded together in a coalition to examine the effects of digital devices on childhood development -- and the group is asking Apple to provide parents with tools to limit and help monitor children's use of its devices.
Should Apple lead the way in fighting childhood device addiction? Image source: Getty Images.
Strange bedfellows
The California State Teachers' Retirement System, or CalSTRS, is among the largest public pension funds in the country, and Jana Partners is an activist hedge fund. Combined, the entities own approximately $2 billion in Apple shares. The two penned a letter to the tech company saying, "There is a clear need for Apple to offer parents more choices and tools to help them ensure that young consumers are using your products in an optimal manner."
The letter provides a host of compelling medical evidence that highlights this mounting concern. Of more than 2,300 teachers surveyed, 75% said children's' ability to focus on schoolwork has declined as the result of "personal technologies," and a full 90% say that kids' emotional challenges have increased. Other studies found that the overuse of technology by kids causes them to sleep less and puts them at a higher risk of suicide.
Teachers aren't the only ones concerned. A survey of 3,500 parents reported that 58% worry about the influence of social media on their children's health and well-being. 58% say their child is too "attached" to their phone or tablet, while 48% describe a "constant battle" between parents and kids regarding the appropriate amount of screen time.
The group pushing for the changes includes a diverse group of investors, activists, and researchers. Dr. Michael Rich is an Associate Professor of Pediatrics at Harvard Medical School and founding director of the Center on Media and Child Health at Boston Children's Hospital. Professor Jean Twenge is a Professor of Psychology at San Diego State University and has authored more than 140 books and scientific publications.
Joining the team is award-winning musician Sting, a founding member of the band The Police and an activist who has supported such causes as Amnesty International, Live Aid, and the Rainforest Fund. Trudie Styler, Sting's wife, is an environmentalist, human rights activist, and UNICEF Ambassador. Patricia Daly is a Dominican Sister who works in the area of corporate responsibility and socially responsible investing. Professor Robert Eccles advises companies and investors on how to create sustainable strategies.