February 03, 2018

Admitted Slowing Down iPhones As “It Was The Right Thing To Do”

At the end of 2017, we have seen tech giant Apple openly admitted that they purposely slowed down older iPhones with an iOS update. Well, Apple had taken this step just to avoid battery hazards.

However, that move from Apple has recorded the worst outcome. Apple customers felt it hard to digest the news. The company on return issued a lengthy letter of apology to its customers on which it claims that there has been some “misunderstanding about the issue”

Now, during the company’s call with analysts following the FY18 Q1 earnings report, Apple CEO Tim Cook was asked whether investors should be concerned about slowing upgrades rates due to Apple’s battery replacement program.

Well, allowing iPhone users to replace their old batteries could reduce the number of upgrades which will lead to slower iPhone sales. However, Tim Cook said they never thought of this when launching the program.

Tim Cook said “We did not consider what the battery program would do for upgrade rates. Sitting here now, I don’t know how it will impact upgrades. We did it because we saw it as the right thing to do for our customers. The effect on upgrades was not in our thought process in deciding what to do”

“The way I look at this, generally what we see with iPhone is that the reliability of iPhone is fantastic. The previously owned market has expanded in units over the years and you see carriers and retailers having very vibrant programs around trading iPhones in because iPhone has the largest residual rate on it”

The US Department of Justice and the Securities and Exchange Commission are right now investigating Apple for how it disclosed information in software updates that slowed down iPhones.

So, what do you think about this? Share your views in the comment box below.
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