How Apple Can Make 1 More Billion Dollar Every Year?

Let us start with the old news.

Apple is not including Charging Brick and Earphones with new iPhones.

So what is in the box?

iPhone and USB C to Thunderbolt charging cable.

Why?

For “Environment”

 So what is wrong with that?

1. Only iPhone 11 Pro and iPhone 11 Pro Max owners have Charging Brick that support USB C to Thunderbolt charging cable – Less than 7% of iPhone users.

2. Average time to upgrade to a new device for an iPhone user is 33 months – Most iPhone 12 owners have to buy a power brick.

3. It is hard to confirm if the cost savings passed on to customers

4. It is a wrong approach - Measuring reduction in carbon footprint in this case limited to customer order decoupling point. Hence Apple is not responsible for the increase in carbon footprint after sales. Customers will buy a charger brick by paying additional money, which supersedes all the effort to “Save Environment”. If Volkswagen releases a car without tyres, then the decision cannot be sugar coated by marketing it as an effort to save the environment, because customers will buy tyres separately from Bridgestone. Now there is no reduction in carbon footprint, it just shifted from Volkswagen to Bridgestone. If a company sincerely wants to reduce carbon footprint, then extend the focus to the product life cycle, otherwise it is just a futile attempt to pass the responsibility to some else.

 How 1more billion?

As discussed, customers don’t have suitable charging bricks. Hence Apple is selling them for INR 1900. Based on sales figures of iPhone 11, we can assume sales of at least 50 million devices every year. Hence Apple can sell 50 millions of $20 Charging Bricks, which is $1 billion.

 The decision not to include Charging Bricks has been criticised by many Android smartphone giants. Irony is they all are going to follow the same practice in near future.

 What do you think about it?