Saturday, 29 February, 2020


Apple's battery replacement program cut into iPhone sales

TODO alt text Apple's battery replacement program cut into iPhone sales
Melba Vasquez | 30 January, 2019, 05:27

If 11 million fans chose a new battery over a $1,000 upgrade, that's roughly $11 billion in revenue Apple missed out on a year ago.

Apple may have shot itself in the foot with its $29 iPhone battery replacement program as 10 million more users than anticipated opted to swap out their old batteries rather than pony up for a new phone.

Apple says that it replaced around 11 million iPhone batteries previous year, according to information leaked from in a recent meeting headed by CEO Tim Cook. If you assume that 11 million people elected to keep their old iPhone in commission for just $29 versus spending a minimum of $749 for an entry-level iPhone XR, that's around $7.9 billion in potentially lost revenue. The new battery-toting cases are Apple's official solution to those wanting both extra protection and extra runtime with their flagship iPhones, but they also presented a new challenge. It's not the most accurate estimate, then.

If accurate, the program likely had a significant impact on Apple's revenue.

"My guess: the effect of the battery replacement program on new iPhone sales wasn't apparent until after the iPhone XR and XS models were available", Gruber writes.

The program was launched after Apple began to slow down the performance of devices that had aging batteries and were more prone to turn off without warning. Considering that Apple was offering $50 off replacements for the entire year, it's perhaps not that surprising in retrospect.

Its admission resulted in a deluge of complaints from consumers and critics, so a new battery, which would remove the need to throttle older devices, was offered for a significantly smaller fee. Cook also turned down speculations that Apple products were hit by the ongoing US-China trade war. While some investors will fret around price cuts and what it means for top-line growth in the next few quarters and losing perception as a luxury smartphone, taking a step back it's all about the installed base for Apple.

First, Apple sought to stem the drop in their income, reducing the number of orders for the production of iPhone, says analyst.

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