consumer technology giant apple (AAPL -0.33%) They just launched the iPhone 14 production line. You know the exercises, right? The processor is faster, the cameras are a bit nicer, and the new device offers some features that weren’t there last year.
In particular, the iPhone 14 comes with an unexpected and very welcome improvement that may make the iPhone turn off some of the die-hard Android users. However, Apple did not mention this revolutionary upgrade at its launch event.
Until now repeatedlyIt makes sense that Apple would want to keep a lid on this important redesign. The company has strong business reasons to do so. Let me explain.
Easy-to-use secret for Apple
Apple is notorious for severe restrictions on home repairs.
iPhones and iPads are held together with special screws and annoying glue. When you can replace the cracked iPhone 13 screen on your own, you will find that the phone has lost its automatic brightness and ambient light adjustments. The only way to keep these functions intact is to push through the nose for an approved repair by Apple technicians, who can use a special connector to update the expected display serial number.
However, the recently unveiled iPhone 14 series has made some drastic design changes that make it easier to fix than any iPhone released in the past six years. Enthusiasts and independent phone repair companies like iFixit and Zack Nelson (JerryRigEverything), agree that this update is a game changer. Both the screen and the back panel are relatively easy to remove, making common phone repairs easy to handle. This includes replacing the cracked screen or the entire glass back panel, and you don’t have to disassemble everything to replace a scratched camera lens anymore.
“These changes to the iPhone will help it last longer and reduce its overall impact on the planet,” iFixit noted. “With any luck, it will inspire other manufacturers to follow suit.”
In an iPhone 14 disassembly from Zack Nelson, he said that often broken parts are easy to fix in the iPhone 14. “I think the iPhone 14 screen and back glass are now more repairable than most Android phones, and that’s something I never thought I’d say.”
Keep in mind that this wasn’t a simple redesign – it’s a complete rearrangement of the iPhone’s interior design. Every component has been moved inside the iPhone in order to accommodate the new frame structure.
Why isn’t Apple bombing the schedule around this great update
This is arguably the most user-friendly change to the iPhone platform in years, but Apple is keeping quiet about it. Here’s how the iFixit team describes the situation:
All of our work – and yours – has paid off. Our defense, our pressure, our screams in the streets. The design team at Apple convinced us that repairability is important. Now we need your help to convince their marketing team to talk about it.
Here’s the deal. Apple will market the live daylight of the iPhone 14’s impressive repairability if it wants to steal customers from Android’s target audience. This is not exactly the idea. Some Android users are more price-conscious than almost enthusiastic Apple enthusiasts. Cupertino is not interested in generating additional sales if it also needs to lower the price point.
This is especially true in the age of limited supplies of semiconductors. Apple can already sell as many iPhones as possible. There is no need to cut iPhone profit margins in this market.
The company can also prove that an easily repaired phone can stay in your pocket for longer. Apple will still love to see you buy a new iPhone as often as possible, preferably every year. Why is extending the service life of a product so profitable?
Apple still doesn’t really open the door home repairs Or alternative repair shops. Replacing the iPhone 14 screen will remove two useful features due to the lack of a serial number update, even if you get your hands on an original Apple screen.
What is the big idea?
Instead, it appears that Apple wants to increase the profit margin on full-featured iPhone repairs. Replacing the back glass of your iPhone 14 Pro Max can be quite simple, with less risk of failed repairs and a shorter service time. Apple still charges $549 for this replacement. That’s up from last year’s $399 cost for the same service on the iPhone 13 Pro Max.
It’s hard to say how important AppleCare repair service is to the top and bottom of the company. Apple does not separate sales or operating earnings from this segment in its financial reports, and aggregates its results with advertising, digital content, and payment service revenue under its Services division.
But services are Apple’s second largest business category, after only iPhone sales. It is also the fastest growing part of the company’s business. Anything Apple can do to scale profit margins In this crucial part should be considered.
Making iPhone repair easy is a great example of the idea of increasing profits. Apple isn’t shy about making huge profits, which explains why Many long-term investors love this stock.
Anders Billund He has no position in any of the mentioned shares. Motley Fool has and recommends positions at Apple. Motley Fool recommends the following options: long calls in March 2023 worth $120 on Apple and short calls in March 2023 worth $130 on Apple. Motley Fool has a profile Disclosure Policy.