Apple’s iPhone battery replacement deal may hurt future sales

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Apple CEO Tim Cook stands in front of a screen displaying the IPhone 6 during a presentation at Apple headquarters in Cupertino, California October 16, 2014. (REUTERS/Robert Galbraith)

Apple’s recently announced offer to replace malfunctioning batteries of older iPhone models at a discounted rate may prove to be detrimental to the sales performance for future iPhones.

According to an analyst, if more people opt to take Apple’s battery replacement deal instead of upgrading to a new model, the sales of iPhones in 2018 may take a hit.

Barclays analyst Mark Moskowitz shared that 77 percent of iPhone users are using the iPhone 6, 6 Plus, 6s, 6s Plus, 7, 7 Plus, and SE, all of which are part of the deal that allows customers to get a replacement battery for their phones at a cheaper rate.

Even if just a small portion of these users opt to get a battery replacement instead of an upgrade, it could lead to considerable impact to the sales of the iPhone 8, 8 Plus, X, and future iPhone models.

The company announced the battery replacement discount on Dec. 28. With the offer, Apple is reducing the cost of an out-of-warranty iPhone battery replacement by $50. From the original $79 price, users will be able to get a replacement battery for only $29. The offer covers the iPhone 6 or later devices and will be available until December 2018.

The move comes after Apple received major backlash from customers after it admitted that it intentionally slowed down older iPhones with weakening batteries to prevent them from unexpectedly turning off.

“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,” said Apple in a statement. “We know that some of you feel Apple has let you down. We apologize.”

Apple also promised that it will release an update to the iPhone’s operating system, iOS, to add features that will give users more visibility of their devices’ battery health.