When you have to repair 1 out of every 2 laptops sold within the first two years of its life, across 4 years of sales and 3 unique models, it's really hard to turn a profit.
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Apple Tells Congress It Hasn't Been Profiting From Repairs in Response to Antitrust Probe
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Do any of the naysayers realize Apple will have the financial records to back their claims? This will all come out later anyway, so it would be disastrous for Apple to lie about it.
Of course, they're going to include all of the repairs that are included under AppleCare purchases, which is the point of them selling that warranty, and more importantly all of the recalls for any parts/devices from manufacturer defects. Every company counts loss in this last category. However, I doubt they offset this "loss" calculation with the revenue generated from AppleCare purchases. This is another wordy article which gives more vagueness for Apple cult morons to hump.
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Don't worry, they made up for those losses with AppleCare purchases.
It all depends on what costs Apple included in their analysis. It is quite possible that they would be making a profit if they only included the cost of repair parts and labor. However, the employees doing the repairs have to have a place to work (square footage in an Apple Store that could be otherwise be used for selling products?) and equipment for disassembly and re-assembly of products. There is also a cost of holding service parts inventory. When all of these related cost are added (and the fact they don't make money on repairs performed under warranty), I could easily see Apple operating repairs at break-even or possibly even below break even.
WTF has Maps got to do with repairs?
"We made loads of money on forced upgrades by lying to customers that repairs were too expensive but we spent some of that on our crappy maps so that's okay for some reason..."
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I have no doubts about that Apple has records for the repairs it AGREED to perform
Do they have statistics on the number of customers they quoted repair charges at 70% the price of a new device per chance?
"We made loads of money on forced upgrades by lying to customers that repairs were too expensive but we spent some of that on our crappy maps so that's okay for some reason..."
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I have no doubts about that Apple has records for the repairs it AGREED to perform
Do they have statistics on the number of customers they quoted repair charges at 70% the price of a new device per chance?
Hmmm I thought Apple deliberately makes their products nearly impossible to repair (using glue, rivets etc.) so they can profit from the huge repair fees?
Guess that was just the usual Apple-hate crap. How surprising
And you just blindly believe everything you're told? As the saying goes: "if you ask the inmates, everyone in prison is innocent"
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Overall, I was impressed with Apple's clear and concise responses. Most of them make perfect sense. The only one I'd quibble with is have Safari as the default browser and how Safari is "deeply integrated" with the OS. I understand privacy and security concerns, but I bet there'd be a way to arrange it so that any browser could function properly. Apple did say they can't do it "at this time", which implies they're quietly working on a solution.
Probably has something to do with the English law... look it up, hint: you want to look for latent defect in contract.
They do ... they use glue and rivets and solder. They're not easy to repair. Nothing about this has changed that fact.Hmmm I thought Apple deliberately makes their products nearly impossible to repair (using glue, rivets etc.) so they can profit from the huge repair fees?
Guess that was just the usual Apple-hate crap. How surprising
If only they'd force facebook to use WebKit. Having to open a link outside the app in order to fill in form data is annoying.
Wait.
Maybe Apple is restricting it to keep FB from getting more data? Hmm.
Wait.
Maybe Apple is restricting it to keep FB from getting more data? Hmm.
Hmmm I thought Apple deliberately makes their products nearly impossible to repair (using glue, rivets etc.) so they can profit from the huge repair fees?
Guess that was just the usual Apple-hate crap. How surprising
Then you misunderstand the model.
Apple make themselves the only repair option available (actual or perceived)
Then they quote repair charges as almost the cost of a new device and ask "but why do that when you can just upgrade to a newer model for a little bit more"
And then the kicker: "BTW we'll take that useless broken device off your hands and '''RECYCLE''' it for free..."
Congratulations on your new purchase and helping the environment! And it only cost you several thousands of dollars instead of replacing a broken cable for a few dollars...
Customers seem to forget that when they purchase any device from any manufacturer the cost of the complimentary repair period is included in the cost of the device. Basically in this situation Apple gambles that nothing will occur to that device within one year that is related to its part. If it is not covered due to user neglect or error the customer either had a short window to purchase additional insurance coverage or pay out of pocket.
Any complimentary repairs not taken upon is part profit not the entire sum but a portion since Apple did have to have replacement parts or a “subjective new” device to replace an in warranty device.
Part of these also fall under a business loss to write down taxes. Apple would not sell AppleCare at a loss for the majority it makes a profit as most people do not claim it and the few that do either is for minor known issues or the rare situation that the customer wins the insurance gamble.
Let’s be clear no business would offer a service or product at a loss without offsetting it somehow. I don’t believe Apple is being transparent in this situation.
The T2 chip hardware security to solder everything for the sake of its users is just plain ridiculous. We have FileVault, Find My and reporting it to the authorities and filing a CC claim. What type of Top Secret work are Mac customers doing on their computers either in a public coffee shop or at home. I work in that area and nothing Apple is selling to justify its actions would be compliant with a Top Secret or even a Secret computer protocol.
It is more of an excuse to force the customer to use Apple for repair services with no other option.
I look at it like any other store. Stores can choose what products to sell and boot the ones it doesn't.
My limited personal experience is this. When I ask 'independant' companies to repair my Apple products, it's never really that good and I'm never really satisfied. It costs a bit more having repairs done directly by Apple, but in the long run, I'm fully satisfied. I prefer to pay a bit more, and have the assurance that everything is right. Just my point of view. I actually needed very few repairs done since 2007. Only a battery change for my MBA 2013 (after 6 years, it was due...) and a battery change for my iPhone. Apple products are sturdy, reliable and trustworthy compared to any android phone. Some of my friends had repairs done by 'independant' companies and were not satisfied.
They can’t lie, so you’re missing costs associated with the repair. It’s not as simple as paying a Genius $10/hr.
Agree. The only way they made this math work was by attributing a ton of S,G&A costs to the process.
It's never really been a case of Apple ripping everyone off for profit. It's more a case of Apple charging outrageous prices to repair things whenever they DON'T happen to cover it as a good-will or an in-warranty repair.
For example, we had a 2017 Macbook Pro 13" notebook here that got some liquid spilled in it. (It was only a few months old when it happened, too.) It was still booting up and working, but the screen had all these weird shadows on it where you could see liquid behind the back-light, and we knew it wasn't good to keep trying to use it like that. So we sent it in for repair. The repair quote was something like $150 less than just buying another new one.
And I get it .... they get those numbers by adding up their regular prices on each replacement part, when for liquid damage, they're going to essentially swap all all the guts in it - including the main logic board and the screen. But still, you have to blame some of that cost on Apple's insistence on making the systems so non-modular. (EG. You can't just salvage the RAM or the SSD by detaching them from sockets on the board and moving them to the replacement one.)
The Apple watches are another good example. I had a Series 3 Nike Sport here that's started having battery issues. Only wants to charge for a few minutes at a time when you put it on the charger, so you can't get it recharged without constant babysitting and detaching/reattaching it every time you see that it quit. It's just over 2 years old though, so outside the 1 year warranty. A repair quote is something like 2x the price working used ones sell for on eBay all day long, so no point in fixing it.
For example, we had a 2017 Macbook Pro 13" notebook here that got some liquid spilled in it. (It was only a few months old when it happened, too.) It was still booting up and working, but the screen had all these weird shadows on it where you could see liquid behind the back-light, and we knew it wasn't good to keep trying to use it like that. So we sent it in for repair. The repair quote was something like $150 less than just buying another new one.
And I get it .... they get those numbers by adding up their regular prices on each replacement part, when for liquid damage, they're going to essentially swap all all the guts in it - including the main logic board and the screen. But still, you have to blame some of that cost on Apple's insistence on making the systems so non-modular. (EG. You can't just salvage the RAM or the SSD by detaching them from sockets on the board and moving them to the replacement one.)
The Apple watches are another good example. I had a Series 3 Nike Sport here that's started having battery issues. Only wants to charge for a few minutes at a time when you put it on the charger, so you can't get it recharged without constant babysitting and detaching/reattaching it every time you see that it quit. It's just over 2 years old though, so outside the 1 year warranty. A repair quote is something like 2x the price working used ones sell for on eBay all day long, so no point in fixing it.
This happens in all different companies and industries. It isn't unique to Apple. Guess what happens when your 15 year old car with 180,000 miles needs a new engine or transmission. You buy a new one. These things have a useful life and it isn't Apple's fault that sometimes the cost to repair exceeds the value of the underlying product. Clothing, appliances, cars, electronics...the list is endless.
I remember Apple wanting $700 to replace my iMac screen. The same panel could be had, with enclosure, from Monoprice for less that $300. Unless they are paying the geniuses $400 an hour to replace the parts, the math isn't adding up here.
I never said they were easy for users or any other untrained personnel to repair. My point is that apparently it’s not part of some nefarious scheme to bilk customers.
True, but I can go to their competitor and buy it if they booted it; with iOS, iPadOS (or whatever it's called), I *cannot*