Apple has revealed in a letter to investors that it’s expecting a US$9 billion (~RM37.3 billion) loss in revenue due to low iPhone sales and demand. As for why that’s the case, Tim Cook, CEO of Apple, says it’s partly because more people are simply replacing their iPhone batteries instead of buying new ones.
Back in late 2017, Apple confirmed that it was throttling iPhone performance. As a form of compensation for degrading batteries that are causing iPhones to sometimes shut down.
To placate it’s unhappy users, the company offered to replace batteries of iPhones affordably, something that even local resellers are doing. The company even allowed iPhone users to turn the throttling off if they so desired.
Thanks to that, people knew what exactly was wrong with their iPhones, and on top of that, they had a way to fix it without breaking the bank. And with that, people were buying new batteries instead of new iPhones. This is especially true for the current generation models, which got the iPhone X back into production.
So then the question is, will we continue to see soaring prices for iPhones to compensate for the decreasing sales? Or will we see iPhones more reasonably priced – at least compared to the iPhone XS Max – this year? Only time will tell.
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