Apple's $29 Battery Replacements Could Result in 16 Million Fewer Sales [Report]

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Posted January 4, 2018 at 5:12am by iClarified

Apple's lowering of battery replacement costs could result in fewer sales this year, according to a Barclays investor note via CNBC.

The company recently launched a $29 battery replacement program after admitting that it been secretly slowing down devices as their batteries aged.

"While this is a good PR move for Apple to resolve the issue, we are concerned it could be a mild headwind for iPhone unit sales if more iPhone users decide to take the offer instead of upgrading to a new device," Barclays said.

It's estimated that 77% of iPhone users are eligible to upgrade their battery.

"In our base case scenario, 10% of those 519M users take the $29 offer, and around 30% of them decide not to buy a new iPhone this year. This means around 16M iPhone sales could be at risk, creating ~4% downside to our current revenue estimate for C2018."

Barclays is neutral on AAPL and believes that Wall Street is "too optimistic about the iPhone X super cycle"; however, it notes that the new tax law and Apple's growth in services are positives.

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Apple's $29 Battery Replacements Could Result in 16 Million Fewer Sales [Report]

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Fred - January 6, 2018 at 10:41am

Really bad Apple! I bet there is the same shit with iPad Mini! I have noticed it!

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Saurik - January 5, 2018 at 9:38pm

You Android junkies have to be really high to compare Apple's battery issue to Samsung's. Samsung's batteries threatened people's lives, while Apple helped people out but is accused of not being 'transparent enough.' What a crock.

iSheep - January 4, 2018 at 4:07pm

Samsung lost 1.5 plus Billion and even scrapped their Samsung Note 7 because of their exploding batteries. Let see how Apple fairs out from this. #BatteryGate - #ChipGate - #iOsGate - and #WhatTheFckElseTheirDoingToOurDevicesGate! :-P

iSheep - January 4, 2018 at 3:52pm

When they say bad publicity is good publicity, this isn’t one of them! Lol

radfan957 - January 4, 2018 at 11:27am

Awwwwwweeee.....poor Apple.

Jeff - January 4, 2018 at 1:57pm

I don't think that Apple is too concerned. This is purely speculation on Barclay's part and probably wrong.

kervinDgreat - January 4, 2018 at 7:11am

may i know where is the link to buy batteries?

ipadguy - January 4, 2018 at 6:40am

They’re doing some stuff right now I even can acknowledge as good I’ll sit and wait but it’s not affecting me although I understand the problems hopefully they remedy this quickly with the issues with iPhone X accessories being so high priced that would obviously go down in time but still and the battery situation :/

Userone - January 4, 2018 at 5:20am

Now their pr will regret for being to transparent...lol

socalpunks - January 4, 2018 at 5:17am

When you upgrade a battery does Apple update your iOS software if you're using an older version?

ipadguy - January 4, 2018 at 6:38am

You know I don’t think they would upgrade your software they’re just replacing the battery there’s no need to upgrade the software I don’t see why they would do that in less they wanted to then yeah that would suck for you if you’re had a jailbroken set up :/

Dang The Hung - January 4, 2018 at 1:03pm

Apple does indeed update the iOS on the iPhone when you send it in for a battery replacement. I've sent in 2 iPhone 6s under their free battery replacement program and they both came back with 11.2.1 on them.