Ar the end of 2017, Apple adjusted the iPhone battery replacement price to $29, down from previous $79 price. From the beginning of the end of 2017, to December 31, 2018, Apple replaced a total of 11 million iPhone batteries, and that means it earned nearly $319 million during the period.
According to Daring Fireball, Tim Cook shared this data in the all-hands meeting with Apple employees. If Apple didn't adjust the price of iPhone battery replacement, then the company could only replace 1-2 million batteries, suggesting that Apple replaced approximately 9 to 10 million more batteries than average.
Cook believes that battery replacement program is one of the reasons 2019 Q1 fiscal quarter revenue below expectations, meaning that users choose to replace the iPhone battery, instead of buying a new iPhone. Although Apple knows the battery replacement program may affect iPhone sales, it was until the iPhone XS, XS Max received fewer upgrades, Apple wasn't aware the seriousness of the problem.
The discounted replacement program comes after Apple was found to throttle performance of iPhones when the battery become degraded, so they introduced the so-called Power Management feature to smooth out the high power draw peaks that can result in shutdowns and prevent devices to "deliver the best experience". Apple then apologized for its wrong doings and announced the program.
Cook believes that battery replacement program is one of the reasons 2019 Q1 fiscal quarter revenue below expectations, meaning that users choose to replace the iPhone battery, instead of buying a new iPhone. Although Apple knows the battery replacement program may affect iPhone sales, it was until the iPhone XS, XS Max received fewer upgrades, Apple wasn't aware the seriousness of the problem.
The discounted replacement program comes after Apple was found to throttle performance of iPhones when the battery become degraded, so they introduced the so-called Power Management feature to smooth out the high power draw peaks that can result in shutdowns and prevent devices to "deliver the best experience". Apple then apologized for its wrong doings and announced the program.