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Apple battery replacements were 10 times higher last year due to discount

iPhone with low battery hero

We knew Apple’s battery replacement programme saw a surge in popularity last year due to Apple discounting the service.

But now we know just how popular it was – Apple may have replaced up to 11 million iPhone batteries, costing it a lot of money in lost revenue.

Apple would usually replace around 1-2 million batteries during the same period.

If 11 million people did opt to replace their battery and prolong their iPhone’s lifespan rather than dropping £1,000 on a new handset, it would have cost Apple around £11 billion in lost revenue.

Apple’s recent profit revision – its first for 15 years – said it estimated to make between $5 and $9 billion less than previously expected.

CEO Tim Cook cited the battery replacement programme as one factor in its revised profit estimate.

Apple offered the service at a discount to assuage customers angry at its practice of throttling (i.e. limiting the performance of) older iPhones to compensate for their ageing batteries.

Some critics said that limiting the performance of older iPhones, and staying quiet about it, was a way to convince unwitting consumers to upgrade to a newer model.

New batteries meant no throttling was required.

Since the profit revision, rumours say that Apple will cut the price of its latest handsets in an effort to boost sales.

It recently slashed the price of its iPhone XR and iPhone 8 handsets in China.

Source:

Daring Fireball

Category: News
Tagged: apple, ios, smartphones
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