MoneyApple says cheap battery replacements hurt iPhone sales

03:10  03 january  2019
03:10  03 january  2019 Source:   theverge.com

Citi cuts first-quarter iPhone production estimates on weak demand

Citi cuts first-quarter iPhone production estimates on weak demand Citi cuts first-quarter iPhone production estimates on weak demand

An important message to our customers regarding iPhone battery and performance. Of course, when a chemically aged battery is replaced with a new one, iPhone performance returns to normal Apple is reducing the price of an out-of-warranty iPhone battery replacement by — from to

Late last year, Apple (NASDAQ: AAPL ) admitted that it had been throttling the performance of iPhones with To avoid such unexpected shutdowns on devices with worn-out batteries , Apple says that it This, one analyst thinks, will lead Apple to see reduced iPhone sales . A 16 million-unit reduction in

Apple says cheap battery replacements hurt iPhone sales© Photo by James Bareham / The Verge

Apple just revealed it’s expecting a $9 billion loss in revenue due to weak iPhone demand that’s partly caused by more people replacing their batteries, according to a letter issued by CEO Tim Cook addressed to investors.

Last year, Apple admitted it was throttling older iPhone models to compensate for degrading batteries that caused the phones to sometimes shut down. It ended the practice shortly afterward and offered to cut its $79 battery replacement fee down to $29 as a way of apologizing.

The lower fee coupled with the greater transparency meant that more people in 2018 ended up swapping their batteries — instead of upgrading to the latest iPhone models, it turns out. Now that iPhone batteries are cheaper and easier to replace, fewer people are shelling out for new iPhones that can now cost up to $1,449. And once Apple admitted it was throttling older iPhone models and subsequently ended the practice, these phones were no longer being slowed down. Also, anyone 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. 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.

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Barclays says Apple 's battery replacement program could hurt iPhone sales . Folks who upgrade to a new battery for may not be inclined to buy a Barclays says it remains neutral on Apple stock. It believes Wall Street is "too optimistic about the iPhone X super cycle" but thinks Apple 's growth in

Does your iPhone battery drain too quickly? iPhone battery replacement . If your iPhone has any damage that impairs the replacement of the battery , such as a cracked screen, that issue will need to be resolved prior to the battery replacement .

Today’s letter is simply guidance, though, not concrete sales numbers. But you shouldn’t expect to see any real numbers 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. That’s another reason today’s admission by Apple is particularly significant.

Apple is reportedly cutting iPhone production by 10 percent.
Apple lowering its earnings guidance by a whopping $5 billion is probably a big enough indicator that the tech giant is feeling the effects of struggling smartphone sales and the US-China trade war. A new Nikkei report makes it even clearer that the tech giant isn't immune to market saturation, though: According to the publication, Cupertino has asked its suppliers to manufacture fewer iPhones than planned for January to March. Apple is reportedly cutting the overall production target of both old and new iPhones, including the XS Max, XS and XR, by around 10 percent.

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