Two influential shareholders, Jana Partners and California State Teachers’ Retirement System (CalSTRS), are calling on Apple to study the impact of smartphone use on child development.
In an open letter, Jana Partners managing director Barry Rosenstein and CalSTRS director of corporate governance Anne Sheehan highlighted research showing a link between electronic device use and negative effects on concentration, emotional health, sleep, and empathy. They argued that parents bear ultimate responsibility for their kids’ device and social media use is no longer valid as it "misses the point" as tech companies also have a role to play in supporting parents.
The Shareholders’ Concerns
- Negative effects of smartphone use on child development: Research shows links between electronic device use and negative effects on concentration, emotional health, sleep, and empathy.
- Ineffective parental control features: Current software tools force parents to take an "all or nothing approach" by only allowing them to prevent access to certain functions or features.
- Lack of transparency: Apple does not provide annual reports on its efforts to address these issues.
Proposed Solutions
- Tasking an executive to focus on the issue and deliver annual reports for more transparency
- Creating a committee of child development experts
- Supporting researchers by giving them access to Apple’s information resources
- Adding new setup menus and options to software so parents can tailor functionality to specific age groups
The Significance of the Letter
The letter is noteworthy because both Jana Partners and CalSTRS are influential activist shareholders, holding a total of about $2 billion in Apple shares. This represents a tiny fraction of Apple’s current market cap of $898 billion.
What Does This Mean for Apple and Its Shareholders?
- Increased scrutiny on Apple’s role in child development: The letter highlights the need for tech companies to take responsibility for their products’ impact on children.
- Potential changes to Apple’s policies and software tools: If implemented, these proposed solutions could lead to significant changes in how parents can monitor and manage their kids’ device use.
The Broader Implications
The debate surrounding smartphone use and child development is a complex issue that affects not only parents but also the tech industry as a whole. As more research emerges on the topic, it will be interesting to see how companies like Apple respond.
Sources
- The letter from Jana Partners and CalSTRS
- Psychologist Jean Twenge’s research on smartphone use and child development
Related Topics
- Apple
- CalSTRS
- Children
- Education
- Jana Partners
- Kids
- Mental health
- Teenagers
