Apple's attempt at appeasing some of its loyal followers may have an adverse impact on their iPhone sales for 2018.
Barclays analysts on Wednesday noted that Apple's move to lower the prices of batteries for older iPhone models from $79 to $29 could be bad for their iPhone sales for the year, Reuters reported. The decision to come up with a battery replacement program stemmed from complaints coming from users of older iPhone models who experienced their devices' performance slowing down, prompting some of them to file class suits against the tech giant.
"While this is a good PR move for Apple to resolve the issue, we are concerned it could be a mild headwind for iPhone unit sales if more iPhone users decide to take the offer instead of upgrading to a new device," said Barclays in a note, posted on a CNBC report.
Mark Moskowitz, an analyst in Barclays, said that about 77 percent of iPhone users are eligible for battery replacement. With such a huge number, the analyst believes that a huge number of iPhone users may just opt to replace their old batteries instead of spending more for the latest iPhone model in the market.
"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," the analyst explained.
Apple is currently facing lawsuits from different groups, with another one brewing in Australia. News.com.au reported earlier this week that two Australian firms are looking to file a class suit against Apple for the latter's admission of deliberately slowing down older iPhones to compensate for their aging batteries. The class suit will reportedly be headed by Shine Lawyers, representing Australian iPhone users who complained of the adverse effects of Apple's software update.
"In Australia, we will be looking at a class action for strict product liability, negligence, breach of warranty, and a violation of consumer trust," said Jan Saddler, Shine Lawyers expert on class actions in an interview with Business Insider.