Apple sorry for slowing iPhones, cuts battery price by $50
Apple sorry for slowing iPhones, cuts battery price by $50
Apple sorry for slowing iPhones, cuts battery price by $50
It bears all the markings of giving something away which is usually viewed as anti-competitive.So will Batteries Plus and other competitors sue?
What's anti-competitive about a company admitting they goofed up and trying to do right by their customers? My Ford Escape has the Microsoft SYNC system that Ford extended the warranty on its workings to 5 years at no cost. Is that anti-competitive because I might be more likely to buy Ford in the future because they did the right thing?It bears all the markings of giving something away which is usually viewed as anti-competitive.
It is anti-competitive for Apple to do it because there's an entire marketplace that has grown up around replacing iDevice batteries. Batteries are a "consumable" because they die over time. To have Apple engage in a frontal assault on the replacement marketplace and sell something for less than cost (including labor and overhead) is a nice gesture but it certainly frags things for the aftermarket that they helped establish.What's anti-competitive about a company admitting they goofed up and trying to do right by their customers? My Ford Escape has the Microsoft SYNC system that Ford extended the warranty on its workings to 5 years at no cost. Is that anti-competitive because I might be more likely to buy Ford in the future because they did the right thing?
If Apple really wanted to do damage to the third-party repair companies they would have made it so the Apple iPhone would only work with Apple batteries. The repair shops can still replace damaged screens and there are probably a good number of owners who don't want to send their iPhones to Apple for a week to have the batteries replaced. For those people, getting their batteries replaced by their local repair shop will still be a better option. Will they drop their prices to be more competitive? Could be. But isn't that Good for the Customer? Lower prices?It is anti-competitive for Apple to do it because there's an entire marketplace that has grown up around replacing iDevice batteries. Batteries are a "consumable" because they die over time. To have Apple engage in a frontal assault on the replacement marketplace and sell something for less than cost (including labor and overhead) is a nice gesture but it certainly frags things for the aftermarket that they helped establish.
On that I have no doubt. Appointments will be hard to come by in the first quarter or two of 2018.I'm betting Apple's replacement service turnaround is going to leap.
I doubt the profits for the third parties are all that significant to begin with. They likely pay as much or more than Apple for the batteries and their labor is probably similar. Maybe they can shave a few dollars but they can't sell for cost or less.For those people, getting their batteries replaced by their local repair shop will still be a better option. Will they drop their prices to be more competitive? Could be. But isn't that Good for the Customer? Lower prices?
I'm guessing Apple is breaking even at that $29 rate. Figure a battery is around $5 and around 30-45 minutes of labor ($10-15 - I've read that their techs can get up to the $20/hr range), factor in training costs, store overhead, etc, they're probably doing okay. Certainly not losing money, I'd say !I bet $29 doesn't even cover the labor costs let alone the battery.
Too often people forget about overhead costs on labor. Depending on utilities, parking, rent, insurance and other overheads, I can see the company's cost on a "$15 employee" being easily upwards of $70/hour. Based on Don's recent experience I'd be inclined to think that 25 minutes is probably somewhere in the middle of what someone who does this all the time could pull off.I'm guessing Apple is breaking even at that $29 rate. Figure a battery is around $5 and around 30-45 minutes of labor ($10-15 - I've read that their techs can get up to the $20/hr range), factor in training costs, store overhead, etc, they're probably doing okay.
I was replying to Hall who didn't seem to be taking overhead into account.BTW, I’m a bean counter. I am exquisitely aware of overhead costs.