To appease the angry mob of iPhone owners, Apple announced a new battery replacement program that drastically cut the price for battery replacement. Those models now make up 77 percent of the iPhone market, meaning even a small percentage of owners opting for a new battery instead of a new iPhone will result in a significant fall in iPhone sales. The firm noted that Wall Street is "too optimistic about the iPhone X super cycle", but said it does believe services unit revenue growth looks good, and that Washington's new tax plan should benefit the company as well.
Apple recently said it intentionally slows iPhones with older batteries to prevent the handsets abruptly shutting down.
Before wrapping things up, you should know that your iPhone may not have been slowed down despite a bad battery under the hood if it's running an older version of iOS.
Does it make you feel a little differently about Apple when you realize that that $1,000+ iPhone X you're still ogling might be scrap in three years?
It claims it did so to protect their devices from sudden and unexpected shutdowns caused by their degraded batteries being unable to run new operating system features. Ltd., LG Corp., HTC Corp. and Motorola Inc. came out after Apple's apology to state that they don't employ the same performance throttling practices as the tech giant.
Apple is now offering $29 battery replacements for old iPhones. The stock has a market capitalization of $894,860.00, a price-to-earnings ratio of 18.97, a PEG ratio of 1.43 and a beta of 1.23.
In the long term, with the goal of keeping Apple customers for life, the iPhone battery replacement program was the right move on Apple's part.
Apple had previously charged £79 in the United Kingdom (or $79/£59 in the US) to replace batteries not covered under the phone's warranty.
Apple apologised, saying: "We've been hearing feedback from our customers about the way we handle performance for iPhones with older batteries and how we have communicated that process". With the iPhone being the primary driver of AAPL stock - last quarter, iPhone sales accounted for 55% of the company's revenue - the news is not good for Apple investors.
The 6.46-inch OLED iPhone should have the largest battery capacity of the devices, but it'll also have a substantially larger display with even higher pixel density than the display on the 5.85-inch model will, Kuo says.
It was only when benchmark results began to suggest that Apple was throttling older devices - something that's been a widespread urban legend for some years now - that the company was forced to explain itself.