When Apple lowered its income steerage for the Christmas quarter a few weeks in the past, Tim Cook defined Apple’s uncommon miss in a letter, offering a number of attention-grabbing particulars concerning the firm’s monetary efficiency for the interval. iPhone gross sales weren’t as robust as Apple would have hoped, because of a number of causes. Among them, Cook highlighted the inexpensive iPhone battery substitute program that Apple supplied patrons final 12 months, in response to the iPhone throttling concern that got here to mild in late 2017. Now now we have an thought of what number of batteries Apple changed final 12 months because of an insider. Eleven million iPhone batteries had been changed in 2018, in comparison with the anticipated 1-2 million.
Here’s a fraction from Cook’s letter that tackled the battery program (emphasis ours):
While Greater China and different rising markets accounted for the overwhelming majority of the year-over-year iPhone income decline, in some developed markets, iPhone upgrades additionally weren’t as robust as we thought they’d be. While macroeconomic challenges in some markets had been a key contributor to this pattern, we imagine there are different elements broadly impacting our iPhone efficiency, together with shoppers adapting to a world with fewer service subsidies, US greenback strength-related value will increase, and some clients benefiting from considerably decreased pricing for iPhone battery replacements.
At the time some folks thought it was unusual for Cook to incorporate battery replacements within the letter as a result of the argument may additional gas that loopy conspiracy concept that claims Apple deliberately slows down its iPhones in order that customers purchase new gear.
Commenting on the battery substitute program impact on Apple’s Q12019 numbers, Jean-Louis Gassée speculated on the variety of replacements Apple carried out final 12 months, concluding initially that the $29 battery program could not have been sufficient to have an effect on iPhone gross sales. He later up to date the put up to acknowledge the truth that his estimates is perhaps too low, and that Apple had full data of the battery substitute numbers when it issued its steerage for the primary quarter.
Looking at Gassée’s tackle the matter, Apple insider John Gruber really supplied a determine for the battery program. According to him, Cook defined in the course of the all-hands assembly that came about on January third that 11 million iPhone batteries had been serviced below the $29 substitute…