Apple recently confirmed that anyone with an iPhone 6 or above could get their battery replaced on their handset for $29. Apple normally charges $79 to do this. The company is waiving the genius bar tests on these batteries and will let anyone with one of these handsets get the device replace for the lower fee.
According to a recent report this could end up costing Apple quite a lot of iPhones sales over the next 12 months. As people who may have upgraded will just end up getting the battery on their handset replaced instead.
According to Barclays analyst Mark Moskowitz as many as 16 million iPhone owners could end up getting their battery replaced instead of upgrading to a new device.
In our base case scenario, 10% of those 519M users take the $29 offer, and around 30% of them decide not to buy a new iPhone this year. This means around 16M iPhone sales could be at risk, creating ~4% downside to our current revenue estimate for C2018.
Apple is offering people these battery replacements after it was discovered that the company was slowing down older iPhones that had degraded batteries in order to stop the handsets from randomly shutting down.