Many have come to identify Apple Inc. (NASDAQ:AAPL) with its iconic logo or a string of apps the have powered its unending line of hardware. Contrary to opinion, The Telegraph’s Business New Editor, Andrew Critchlow, believes the Cupertino-based company should as well be defined by its excesssive use of aluminum. Apple’s reliance on Aluminum is in line with its policy of limiting carbon footprint in the atmosphere.
Aluminum has over the years encased Apple Inc. (NASDAQ:AAPL)’s hardware ranging from iMacs to iPhones and the iPads. Having sold nearly 211 million tablet computers since 2012, it is estimated that the company might have used as much as 27,000 metric tons over the same period. Since 2012, Apple has benefited a great deal from its reliance of a metal that has fluctuated in price on an increase in supply from the Middle East and Russia.
Apple Inc. (NASDAQ:AAPL) remains well placed to benefit a great deal from the ongoing carnage in the decline of prices in the commodity markets of which Aluminum has held steadily compared to the likes of Copper and Steel. Aluminum has remained stable unlike other metals attributed to the fact that demand has been growing especially in the computer, auto, and aviation industries. Despite not closing in on all-time high prices achieved in 2010, Aluminum has performed better when compared to other commodities.
Over the past year, the price for Aluminum has increased by 2.9% as more companies continue to use it in place of steel. Thanks to growing use and demand the Street remains bullish that the price for Aluminum could clock highs of $2,000 per tonne by the end of the year.
Many companies are following Apple Inc. (NASDAQ:AAPL) on the use of Aluminum because it is extremely lighter than steel and never rusts. Ford Motor Company (NYSE:F) is already enjoying the benefits of Aluminum having developed its first F-150 pickup that is 700lb lighter. There is hope that other automakers led by General Motors Company (NYSE:GM) could also follow suit in using Aluminum in the manufacturing process.
Demand for Aluminum could slow this year in line with global economies but still metal is expected to outperform the other commodities.
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