Apple's Farewell to Lightning Cables As USB-C Takes Center Stage

Apple, the world's most valuable company, has once again introduced an updated range of products. Annually, in September, Apple hosts an event to unveil their top-selling product: the iPhone. This year, following tradition, Apple launched the iPhone 15 series, which boasts numerous enhancements over its predecessor. The most notable improvement is the transition from a Lightning cable to a USB-C port. Interestingly, USB-C technology has been available for years and has already been incorporated into various Apple products like MacBooks and iPads, but iPhones have stuck with the Lightning cable. USB-C offers greater universality and supports faster charging and data transfer speeds compared to the Lightning cable. So, why has Apple been hesitant to switch to a superior alternative for its best-selling product?

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The answer is relatively straightforward. Apple's Lightning cable is a proprietary, non-open-source product, unlike USB-C. This proprietary nature provided Apple with a competitive advantage. In recent years, Apple has been altering its materials usage to meet sustainability objectives and achieve carbon neutrality by 2030. Unfortunately, this led to the use of weaker materials in their cables, resulting in a shorter lifespan and frequent cable breakage. This frustrated Apple users, but the company persisted with this approach. The decreased cable lifespan prompted people to buy new cables more often, generating more profit for Apple. Additionally, Apple earned money by licensing third-party manufacturers who wanted to sell cables under the "Made for iPhones" (MFi) program. The commission and licensing fees constituted a significant portion of Apple's cable-related revenue, totalling a substantial 10 billion dollars.

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However, there has been a significant shift. Apple has introduced the iPhone 15 series with USB-C ports. What drove this change?

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In June of this year, the European Union passed legislation that favoured the adoption of USB-C as a universal cable for all personal devices, including phones, tablets, computers, headphones, and more. The government granted companies until the end of 2024 to make the transition to USB-C. Europe represents a substantial market for Apple, with the company earning 95 billion dollars in revenue from the continent in FY 2022. Consequently, Apple faced a choice between preserving a 10-billion-dollar revenue stream from cables or safeguarding approximately 100 billion dollars from the European market.

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As a result, all Apple products will now feature USB-C ports. This change will provide users with greater flexibility when switching between Android and iPhones, fostering a more universal use of iPhones.