Entrepreneurial Teenagers Earning Upwards of $20K Over Their Summer Breaks to Fix Broken iPhones

[MacRumors]

A new report by The Wall Street Journal this week has taken a look into entrepreneurial teenagers and the lucrative business of summertime iPhone repairs. One 16-year-old in Nantucket, Massachusetts interviewed for the article, Grayson Shaw, cited a nearly $24,000 income for iPhone repairs made in the summer of 2016, when he fixed as many as nine iPhones every day.

Shaw has been repairing iPhones since he was 12, and this summer plans to set up his small business at a table outside of a local ice cream parlor. His repairs include fixing broken screens, microphones, and various other parts of both iPhones and iPads. Shaw's rates include a $189.99 repair cost to fix a broken screen on an iPhone 7 Plus.

Image of Joseph Kokenge taken by Sarah Desforges via WSJ​

On Nantucket, Mr. Shaw is the "go-to guy," says Peter Bordes, executive chairman of a software company, oneQube, who got his phone fixed by Mr. Shaw last summer after a tip from a friend's teenage daughter.

"She said go to this place, and you'll find him in this store," Mr. Bordes says. "It's like a mafia; they know who to go to." The repair, he says, was "flawless."

In Lafayette, Louisiana 18-year-old Joseph Kokenge quit his job at a local bowling alley, which his father manages, after discovering how much money he could make fixing broken iPhones. He began learning how to repair Apple's smartphones watching his father repair a cracked iPhone 3GS, and then browsed YouTube how-to videos for more information.

On average, Kokenge has charged $50 to fix the screens of iPhone 5 devices, and $200 for an iPhone 7 Plus, and he works on his repairs at a local coffee shop.

When a friend asked if his father could fix an iPhone 5, the teen watched YouTube how-to videos and repaired it himself. He soon earned a reputation at school, he says: "If a phone was broken, they knew to go to me."

Word spread and parents, too, approached him. By senior year, he had quit his job at the bowling alley his father manages. "I told him that my time was worth more than $7.50 an hour," he says. "He was proud that I was making more money on my own."

Although AppleCare+ significantly reduces the cost of repairs, out-of-warranty repairs for screen damage made directly from Apple currently cost between $129 (iPhone 5 family) and $149 (iPhone 7 Plus). If any other damage is made to the device, the price jumps to between $269 and $349 for the same devices.

Article Link: Entrepreneurial Teenagers Earning Upwards of $20K Over Their Summer Breaks to Fix Broken iPhones

 

[Avieshek]

I like his hair. Can't see this entrepreneurship grow when things get more complex with like integrated touch-id on a touch screen with Amoled Retina display to be handled with hand.

 

[underkuerbis]

One 16-year-old in Nantucket, Massachusetts interviewed for the article cited a nearly $24,000 income for iPhone repairs made in the summer of 2016, off of fixes he performed for devices like the iPhone 7 Plus at $189.99 per cracked screen.

So he already repaired iPhone 7 Plus devices in the summer of 2016? Yeah, right...

 

[BurgDog]

Good to see. Free enterprise at work is a bit like weeds finding the crack to grow in a road, if there is an opportunity someone will find a way to profit from it. His only problem is lack of diversity in his business. He needs to get right on that.

 

[hipnetic]

Other than one short summer job she has coming up, my 18-year-old daughter is content to just sit around and watch Netflix. I think she's holding out for a management position.

 

[Wide opeN]

Inspirational.

Perhaps I might try my hand!?

 

[earthTOmitchel]

So he already repaired iPhone 7 Plus devices in the summer of 2016? Yeah, right...

Error in wording Just updated with a fix, thanks.

 

[grobik]

So $50 more than apple for a non-apple display and a voided warranty. Not to mention the calibration and testing mesures Apple goes through on each repair.

 

[mike7311]

The margins are too low to make it into a real business. He would be better off cutting lawns. When your margins stick around 20 percent, you are better off finding something else, especially when the tax man comes for his share in California.

 

[DEMinSoCAL]

These upstanding teenagers surely file a tax return for 2016 and claimed all those proceeds, not to mention got a business license, right? Their state franchise tax board will be interested in collecting sales tax on his sales, too. We're not talking a lemonade stand here...

 

[adamjackson]

Lemonade is overrated, anyway.

 

[Mr_Brightside_@]

I do this too, but mostly with Mac upgrades. It's a great side business for me.

 

[ethanwa79]

These upstanding teenagers surely file a tax return for 2016 and claimed all those proceeds, not to mention got a business license, right? Their state franchise tax board will be interested in collecting sales tax on his sales, too. We're not talking a lemonade stand here...

Your avatar doesn't match your comment.

 

[macduke]

Maybe I should start buying broken iPhone and iPads on Craigslist and try fixing them up. I used to enjoy building computers when I was younger, but this is a whole other challenge. Anyone know what to look for when buying broken iOS devices—like warning signs that this device isn't worth the time or effort? It would be less of a thing to make money and more for fun, but if I get good I might start doing some repairs for friends or family. I've always been fascinated by the iFixit repairs and the tools they use that you can purchase.

 

[Weaselboy]

Now I feel kind of like a chump having made seven cents per TV Guide I hand delivered.

 

[JohnApples]

Back when I was in high school, everyone had iPod Touch's and nearly every one had a shattered screen. I used to repair them for fun, only charging for the parts needed to fix them.

I'd love to start doing it again but unfortunately iPods are pretty much gone and iPhones are a little too complex for me now.

 

[Boatboy24]

Poor kids. The IRS will surely be knocking on their doors soon. I hope their paperwork is up to snuff.

 

[barkomatic]

The margins are too low to make it into a real business. He would be better off cutting lawns. When your margins stick around 20 percent, you are better off finding something else, especially when the tax man comes for his share in California.

Can you make 24K over a summer these days cutting lawns? I have no idea. Even if you could, the difference is that he is presumably doing something he enjoys rather than something done purely for money. Not that some people don't genuinely like cutting lawns, but maybe he doesn't.

 

[Glassed Silver]

@TOPIC: Nice, no ESD protection. Not surprised, but still rather baffled how this seems to be such a major obstacle for so many folks.

I mean, always do your ESD protection properly, but even if you can't be arsed a 1 dollar wrist strap from AliExpress can save you headaches. Jesus...

Now I feel kind of like a chump having made seven cents per TV Guide I hand delivered.

Whilst I understand where you're coming from my sentiment is that you should never feel bad in retrospect about honest work you did and got paid for fairly.

These upstanding teenagers surely file a tax return for 2016 and claimed all those proceeds, not to mention got a business license, right? Their state franchise tax board will be interested in collecting sales tax on his sales, too. We're not talking a lemonade stand here...

Hmm, good point, then again maybe he should register a business in some far away island and operate on losses, shifting all gains to a nice account somewhere nice.

You know, like all the big boys do. If he had shareholders they'd demand it and he couldn't do anything about it!

*cough* either way, I do agree though, we're talking sums of money here where he better does his taxes properly - hell if just for the publicity he has now.

Glassed Silver:mac

 

[Weaselboy]

Whilst I understand where you're coming from my sentiment is that you should never feel bad in retrospect about honest work you did and got paid for fairly.

Agreed. To put it in context, I was pulling down about a dollar a week selling TV Guide, and you could buy a candy bar for a dime back then, so I was rolling in dough.

 

[Michaelgtrusa]

Need account to read.

 

[DEMinSoCAL]

Your avatar doesn't match your comment.

But then there is reality, where we legitimate business owners (even teeny ones) are required to pay federal and state taxes, disability (x2), social security (x2), unemployement, and sales taxes, etc., leaving very little left. I wish I could keep everything I make, untaxed, like these kids seem to do.

 

[Drakeymcd]

Okay so a 7 Plus screen is like 40$ on eBay and getting it fixed through Apple out of warranty is 149$ and this kid is making people pay 190$ just to get their screen fixed....?
He’s literally banking 150$ every screen repair lol

 

[960design]

I like his hair. Can't see this entrepreneurship grow when things get more complex with like integrated touch-id on a touch screen with Amoled Retina display to be handled with hand.

Yep, the end is neigh. He will not be able to afford the iPhone 8 screen replacement equipment, nor will Apple allow him to purchase it without an Apple Certification. As with all things, take it while the going is good, just prepare for the next evolution.

 

[tennisproha]

It's like a mafia