Apple May Have Lost 11 Billion Dollars In Revenue Due To The 2018 Battery Upgrade Program
According to a new report from Daring Fireball Apple replaced ten times as many batteries as it expected in 2018, as 11 million customers took advantage of the $29 battery upgrade program last year.
Typically during a similar period, Apple would only swap out 1 or 2 million batteries for customers. Tim Cook cited this massive uptick in customers swapping batteries as one of the two reasons Apple recently slashed their earnings projections for Q1 of 2019.
Doing a rough estimate with each new iPhone costing around $1,000 if each of the 11 million battery swaps would have bought a new phone instead, Apple missed out on a possible 11 Billion Dollars in revenue from device upgrades last year alone thanks to the battery upgrade program.
During the recent earnings call Apple CEO Tim Cook talked about Apple’s thoughts on how the battery upgrade program would impact future sales:
“We did not consider it in any way, shape, or form what it would do to upgrade rates. We did it because we thought it was the right thing to do for our customers. And sitting here today, I don’t know what effect it will have. And again, it was not in our thought process of deciding to do what we’ve done.”