Apple says low-cost battery replacement of older devices hurt iPhone sales

2019-01-04 16:43:15

Latest reports from Apple shows that it’s expecting a $9 billion loss in revenue due to weak iPhone supply due to decreasing demand. This can be caused by more people replacing their batteries, said Tim Cook when addressed to investors.
In 2018, Apple admitted it was regulating older iPhone models to compensate for degrading batteries that caused the devices to shut down unknowingly sometimes. The company offered to cut its $79 battery replacement fee down to $29 as a way of apologizing.
The cut down in fee coupled with greater transparency led to enormous sales in 2018 of batteries — several iPhone users swapped their batteries instead of changing their devices to the latest iPhones. 
As the iPhone batteries are cheaper and easier to replace, fewer people are switching for new iPhones or latest models that can now cost up to $1,449. 
The incident let users became more informed on how to turn the feature off. Also, anyone with the device who struggled with degrading battery life could simply replace it for a $29 fee instead of having to remember to turn on Low Battery Power mode or reach for an external battery pack. 
Furthermore, in 2018, many of the less pleasant quality of life issues for older iPhone models disappeared, and that may have meant people’s main reasons for upgrading to a new phone also vanished.
Today’s letter is simply guidance, though, not concrete sales numbers. But you shouldn’t expect to see any real numbers or figures even if you wait. As of November 1st last year, Apple announced during its quarterly earnings call that it would no longer disclose how many units of iPhones, iPads, and Macs it had sold, effectively obfuscating how the company is doing in terms of demand and production. That’s another reason today’s admission by Apple is particularly significant.

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