NEW DELHI: Cupertino-based tech giant Apple has reportedly revealed that the company had to replace 11 million batteries as part of its $29 replacement program, which is over 10 times of what the company was expecting.
According to a report by Apple insider John Gruber over at Daring Fireball, Apple expected about 1-2 million battery replacements normally. The battery replacement program of Apple started in January 2018 and it went on till December 31, 2018. The company launched the program after it began to slow down the performance of the devices that had aging batteries. The battery replacement helped the old iPhones to regain their lost performance peak.
At the 11 million headcount, A new Apple iPhone buyer who would have spent $1000 on a new device rather spent $29 on the current iPhone's battery replacement, which by an approximation is a loss of $11 billion in revenue.
In a note to investors, Apple CEO Tim Cook revealed that the estimates for sales of new iPhones were lower than expected. This is also one of the reasons why Apple missed its shipments estimated in the fourth quarter. Cook also added that “some customers [were] taking advantage of significantly reduced pricing for iPhone battery replacements.” He also admitted that battery replacement program also intimidated the people from buying new iPhones.
Leaving aside the fall in revenue due to iPhones, the company did very well in its wearable segment. The wearables business also grew by close to 50 per cent year-on-year for Apple. Cook said that both the Watch and AirPods were popular. Along with this, the launch of MacBook Air and Mac mini helped Apple to register year-on-year revenue growth for Mac devices.
Source: gadgetsnow.com
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