Apple's decision to offer $29 battery replacements to customers with older iPhones could cause iPhone sales to drop in 2018, according to Barclays analyst Mark Moskowitz (via CNBC).
Customers opting for a battery replacement instead of upgrading an iPhone could be a "mild headwind" for iPhone unit sales, potentially resulting in millions of fewer iPhone purchases during the year. Moskowitz believes up to 77 percent of iPhone users are eligible to upgrade their batteries.
It remains to be seen if and how the battery replacement program will impact sales in practice despite analyst predictions, as there are other considerations that drive upgrades, such as new features.![]()
Apple began offering reduced-cost battery replacements following backlash from an admission that it slows down some older iPhone models with degraded batteries to prevent them from shutting down unexpectedly.
The power management issue impacts the iPhone 6, iPhone 6 Plus, iPhone 6s, iPhone 6s Plus, iPhone SE, iPhone 7, and iPhone 7 Plus, but only in situations where battery health has declined. Affected iPhones see throttling during times of peak power usage, such as when running a benchmark.
iPhones that are running slower can be restored to their original condition with a fresh battery, which is why Apple has decided to offer $29 replacements from now until the end of 2018.
While Apple implemented power management features in older iPhones in an attempt to extend their lives as long as possible, some people have claimed that Apple is intentionally slowing devices to push its customers to upgrade, which the company says is not true. From Apple:Though Apple may not have been aiming to get customers to upgrade their devices by implementing power management features, it's an inevitable side effect, hence why the battery program could cut into sales somewhat. Apple is currently facing several lawsuits from customers who claim they upgraded after experiencing slower speeds on their older iPhones.
Apple plans to offer $29 battery replacements throughout the year, and according to internal documentation, all customers who ask for a battery replacement for an affected iPhone will receive one, regardless of battery health.
Article Link: Apple's $29 Battery Replacement Program Could Lead to 16M Fewer iPhones Sold in 2018
FYI - The so called "generosity" battery replacement plan in Europe is 44.00 Euros not including a labor cost by some Authorized Apple Re-Sellers.. so when you calculate the USD amount to Euro any American living or visiting overseas with a USA credit card will pay FAR more than 29.00 USD. Seems like Apple is just begging to lose more and more credibility every blundering step they take. <Rolling eyes in disbelief>