Re:Letter from Tim Cook to Apple Investors
by npunt on Thursday January 03, 2019 @02:12AM
(#18813450)
My understanding is the $29 is very much at- or below-cost. The all in cost is just not that cheap for anything involving a service that has labor, a warranty, etc. Not only is labor expensive, there's a chance that the customer's phone will be damaged in some way which they'd be on the hook to replace it, and it still costs money to ship to/from depot, operate the store where customers can drop it off, etc. Part cost /= total cost.
Also, a $7 battery from China is a gamble especially for something heavily used and physically next to your body a lot of the time. I'm sure you'd get a battery that had the same physical size and stated spec, but I'd be skeptical it'd have gone through the same QC. You could get one from a bum batch, or a relabeled one operating out of spec. You just don't know.
Re:Letter from Tim Cook to Apple Investors
by ksec on Thursday January 03, 2019 @02:57AM
(#18813570)
The Apple Store, Repairing Technician are all part of Apple ( As I stated Operational Cost ) whether they were doing the battery replacement programme or not. They just have more works to do. And it is a ~10 mins job following Apple standard procedure, less than 5 min if you don't.
Not to mention Apple outsource a lot of these Battery replacement programme to Registered Third Parties.
A better Spec battery cost less than $7 from LG Chem. BOM cost on battery are not expensive at all, and it is not a secret.
Re:Letter from Tim Cook to Apple Investors
by sascha_sl on Thursday January 03, 2019 @03:39AM
(#18813703)
>The Apple Store, Repairing Technician are all part of Apple
>Apple outsource a lot of these Battery replacement programme to Registered Third Parties
Congratulations, you played yourself.
You could get the exact same Apple Battery from China for about $7 including shipping. I would bet Apple have them for less than $5. Even at a reduced cost of $29, there is still $25 margin for Apple. Even if you subtract the operational cost involves, I doubt Apple ever subsidizes.