Apple revealed last week that it expected a US$9 billion loss in revenue this year due to poor iPhone sales, as more iPhone users replace older batteries rather than buy phones.
In a letter addressed to investors, Apple CEO Tim Cook admitted that demand for new iPhones had slacked after Apple slashed its battery replacement fee last year from $79 to $29. The cut is price was reportedly as a form of atonement after it was discovered that Apple throttled the speed of older iPhone models to compensate for downgrading batteries and force users to newer models.
Apple has been witnessing a steady downswing in new phone sales as phones from many Android vendors now match or exceed the iPhones in terms of design, features, quality and prices. The decision to lower battery replacement costs has also encouraged many iPhone users to swap their degraded batteries rather than plonk-down on new iPhones that could cost as much as $1,500.
The letter to investors from the Apple CEO is simply for guidance and no concrete sales figures were quoted. But then, you will now be waiting in vain if you expect Apple to publish the actual sales figures, because since November of last year the company has decided that it would no longer announce the number of units of iPhones, iPads and Macs it was selling.
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