NEW YORK, January 15 -- When Apple lowered its revenue guidance for the Christmas quarter a couple of weeks ago, Tim Cook explained Apple’s rare miss in a letter, providing several interesting details about the company’s financial performance for the period. iPhone sales weren’t as strong as Apple would have hoped, thanks to several reasons. Among them, Cook highlighted the affordable iPhone battery replacement program that Apple offered buyers last year, in response to the iPhone throttling issue that came to light in late 2017. Now we have an idea of how many batteries Apple replaced last year thanks to an insider. Eleven million iPhone batteries were replaced in 2018, compared to the anticipated 1-2 million. At the time some people thought it was strange for Cook to include battery replacements in the letter because the argument could further fuel that crazy conspiracy theory that says Apple intentionally slows down its iPhones so that users buy new gear. Commenting on the battery replacement program effect on Apple’s Q12019 numbers, Jean-Louis Gassée speculated on the number of replacements Apple performed last year, concluding initially that the $29 battery program may not have been enough to affect iPhone sales. He later updated the post to acknowledge the fact that his estimates might be too low, and that Apple had full knowledge of the battery replacement numbers when it issued its guidance for the first quarter. Looking at Gassée’s take on the matter, Apple insider John Gruber actually provided a figure for the battery program. According to him, Cook explained during the all-hands meeting that took place on January 3rd that 11 million iPhone batteries were serviced under the $29 replacement program, but Apple only anticipated about 1-2 million battery replacements. Gruber says that while the all-hands meeting was reported in the press, the contents of the meeting were secret, except for the number of replacements that he just provided. Gruber also said that the number of battery replacements, even if known to Apple, was significant enough to prevent some iPhone buyers from upgrading to an iPhone XR or iPhone XS, which hurt Apple’s numbers for the holiday quarter. Recent reports revealed that Apple is already taking steps to improve iPhone sales in key markets, including China, Japan, Europe, and the US. In China, Apple reportedly slashed the iPhone price for retailers. In other major markets, Apple is offering buyers a limited trade-in program that lets them turn in older iPhones for a new iPhone XS or XR.
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