Apple (AAPL -0.64%), a major player in consumer technology, recently unveiled its iPhone 14 product line. You are familiar with the procedure, right? The new gadget includes certain capabilities that weren’t available the previous year, along with a speedier processor and marginally nicer cameras.
Particularly, the iPhone 14 offers a surprising and much-needed enhancement that could persuade some ardent Android fans to switch to the iPhone. At its launch ceremony, Apple did not even mention this ground-breaking update.
Again, it makes natural that Apple would want to keep this significant update under wraps. The company is doing this for good commercial reasons. I’ll explain.
The user-friendly secret of Apple
Apple is renowned for restricting house repairs severely.
Cantankerous glue and specialised screws hold iPhones and iPads together. The phone’s auto brightness and ambient light settings are gone once you succeed in replacing the damaged iPhone 13 screen on your own. The only way to keep those functions intact is to pay through the nose for an authorized repair by Apple’s technicians, who can use a special connector to update the screen’s expected serial number.
But compared to previous iPhone models launched in the last six years, the recently introduced iPhone 14 series has undergone some drastic design modifications. This update, according to iFixit and Zack Nelson (JerryRigEverything), is a game changer for independent phone repair companies and fans. It’s simple to undertake basic phone repairs because the screen and back panel are both quite simple to remove. That includes replacing a broken screen or the complete back panel made of glass. You are also no longer required to disassemble the device in order to replace a scratched camera lens.
According to iFixit, “These improvements to the iPhone will prolong its lifespan and lessen its total environmental effect.” “Hopefully it will serve as an example for other manufacturers to follow.”
The sections of the iPhone 14 that break the most frequently are simple to repair, according to Zack Nelson’s breakdown of the device. “I never imagined I would say it, but I believe the iPhone 14 screen and back glass are now even more repairable than on most Android phones.”
Remember that this makeover involved a major reorganisation of the iPhone’s internal architecture, not just a few small tweaks. To fit the new frame construction, every component inside the iPhone has been rearranged.
Why Apple isn’t making a big deal out of this fantastic update
The iPhone platform has possibly undergone the most user-friendly modification in a long time, but Apple is staying quiet about it. The iFixit team characterises the circumstance as follows:
Our efforts, as well as yours, have all been fruitful. Our arguing, pleading, and shouting in the streets. Apple’s design staff has been persuaded by us that repairability is important. We now need your assistance in persuading their marketing department to talk about it.
Let’s get to it. If Apple wanted to snare users of the Android operating system, it would aggressively promote the iPhone 14’s excellent repairability. But that’s not really the plan. Some Android users are more cost-conscious than the almost cult-like devotees of Apple. If Cupertino also needs to drop the price point, it is not interested in increasing sales.
That is particularly true in this day of constrained semiconductor supply. As many iPhones as Apple can produce are already in demand. In this market, there’s no reason to reduce the iPhone’s profit margins.
The business can also argue that a phone that is simple to fix would last longer in your pocket. Apple would still prefer that you purchase a new iPhone as frequently as possible, ideally once a year. Why prolong the useful life of a product that is so profitable?
Apple is still not really allowing for independent repair businesses or home fixes. Even if you managed to get your hands on an original screen straight from Apple’s manufacturers, replacing your iPhone 14 screen will still disable a few useful functions because of a missing serial-number update.
What’s the main concept?
It appears that Apple would rather increase the profit margin on fully functional iPhone repairs. With a smaller chance of unsuccessful repairs and a shorter turnaround time, replacing the back glass on an iPhone 14 Pro Max may be incredibly straightforward. However, Apple continues to charge $549 for that replacement. The price has increased from $399 for the same service on an iPhone 13 Pro Max last year.
It’s difficult to assess how crucial the AppleCare repair programme is to the company’s financial health. Apple bundles its results with income from advertising, digital content, and payment services under the services division in its financial reporting and does not separate sales or operating profits from this section.
However, behind iPhone sales, services is Apple’s second-largest business segment. Additionally, it is the area of the organisation that is expanding the quickest. Consideration should be given to anything Apple can do to increase the profit margins in this vital market.
That notion to increase profits is demonstrated perfectly by making the iPhone simpler to fix. The fact that Apple isn’t embarrassed to turn astronomical profits is the reason so many long-term investors adore this company.
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