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 Shalom Levytam

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.

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 issue with iPad Mini! I have noticed it!

Guest - January 5, 2018 at 9:38pm

It is difficult to compare Apple's battery issue to Samsung's. Samsung's batteries were a safety concern, while Apple is being accused of not being transparent enough about performance management.

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

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.