Apple's battery replacement program to hit iPhone sales

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Damage control was always going to be expensive, but this is worse than predicted.

A California iPhone user has filed a suit against Apple over allegations it failed to disclose it was purposely slowing down the performance of older iPhone models. In early 2017, the company released a software fix for the issue.

With the iPhone X already covering the premium end of the market with its $999 price tag, it shouldn't be surprising for the tech giant to go for the middle market next.

Apple has also confirmed that all eligible iPhone customers can get their device battery replaced at discounted price irrespective of battery health.

For reference, the clock speed of the iPhone 6 and 6 Plus should be at 1.4 GHz, iPhone 6s and 6s Plus at 1.84 GHz, iPhone 7 and 7 Plus at 2.34 GHz, and iPhone SE at 1.84 GHz.

Apple's iPhones in a mosaic pattern. Battery life is most peoples No. 1 complaint about their phones, and maintenance is a long-overdue part to smartphone ownership. By Christmas, the situation was spiraling into a PR catastrophe.

The new battery scheme was supposed to kick off in late January but Apple recently announced that the replacements could commence immediately.

This means Apple could miss out on selling a whooping 16 million iPhone upgrades in 2018, the analyst said. That would be about 23% more capacity than this year's iPhone X with a 5.85-inch OLED display.

"Even a small percentage [of customers] opting for battery replacement over upgrade could have meaningful impact on iPhone sales", Bloomberg cited Barclays analyst Mark Moskowitz as writing in a note on Wednesday.

These diagnostic tests can also be beneficial for customers since they will get to know whether any issues they may be encountering are actually related to the battery or to any other component. Apple shaved $50 off its standard battery fee in an extraordinary - but limited-time - effort to get back in our good graces. However, in November, Cook predicted Apple would see its biggest quarterly revenue take with revenue between $84 and $87 billion. In a note to customers, the company stated that this new policy applied to "anyone with an iPhone 6 or later whose battery needs to be replaced". Your selected store or service center could be out of stock of batteries or even if they do have stock the replacement could take anything between a few hours and a few days depending on the number of iPhones ahead of your device in the replacement queue.

And then there's the competition.

It was only when benchmark results began to suggest that Apple was throttling older devices - something that's been a widespread urban legend for some years now - that the company was forced to explain itself.

In an apology letter written last week, the technology company announced it would be dropping prices by almost two-thirds for anyone with an iPhone 6 model or later.

As of this writing, Brad Moon did not hold a position in any of the aforementioned securities.