At the beginning of the year, Apple noted that Q1 2019 was going to be a subpar one for the Cupertino-based company. At the time CEO Tim Cook said struggles in a competitive Chinese market was one of the reasons, along with the change to Apple’s iPhone battery replacement initiative.
As it turns out the latter had quite the effect on Apple’s bottom line, as reports suggest as many as 11 million iPhone batteries were replaced at a significantly reduced rate. This as Apple lowered the price of replacement batteries for iPhone 6 or later devices to just $29 from $79 in select regions across the globe.
Apple also has a trade-in option, which normally costs consumers $1 000, so naturally many opted to replace the battery on their older iPhone devices instead of upgrading to a new one and paying far more.
The result according to John Gruber of Daring Fireball is a loss of nearly $11 billion in revenue, which is more than the $5 billion to $9 billion that Apple has forecasted losing in Q1 2019.
As such it’s glaring evident where Apple has suffered a slump for the new year’s first quarter, and it should be interesting to see if the company opts to reduce the price of its battery replacement offering by that much in future.
For reference Apple only made that discounted offer in response to the backlash from consumers regarding reports of hardware throttling of iPhones by the company.
While we understand Apple’s desire to keep consumers coming back to iPhone products, it appears as if they need to rethink their strategy, especially as the competition from its Android counterparts continues to grow.
Consequently 2019 could prove a pivotal year for Apple, either for the better or for the worse.