Apple Lose Money On Repair, Huawei Charge $1K Per Foldable Screen
Apple is reportedly losing more money than it earns on repairing devices such as iPhones and Macbooks, while Huawei is charging as much as US$1,007 to replace the display panel for its recently released foldable Mate X.
In answering questions during the US anti-trust investigation, Apple claimed it had been losing money on repair services since 2009.
‘For each year since 2009, the costs of providing repair services has exceeded the revenue generated by repairs’.
Apple currently charges A$529 to replace the iPhone XS Max and iPhone 11 Pro Max, with the cheapest screen replacement being A$199 for any iPhone after the 6.
Meanwhile, in China, Huawei is charging an arm and a leg to repair or replace the Mate X foldable display, a massive difference of A$953.49.
The above is a screenshot of the official prices from Huawei, though considering its China only at the moment, these prices will likely increase if the Mate X ever makes it to Western or European markets.
That being said, a new report from the User Experience Strategies group (UXIP) at Strategy Analytics suggests that the perceived value of the foldable form does not yet outweigh the added cost of producing it.
What this means is that desire for foldable phone handsets will increase as production costs decrease since the willingness to pay more for what is essentially still a gimmick does not align with the desire to purchase one.
However, consumers do seem to perceive the value in the large screen real-estate, despite being unwilling to pay for it.
UXIP Director, Paul Brown added, ‘the ability for foldable displays to resolve real consumer pain-points is, in our view critical to whether these devices will become a niche segment of the smartphone market or the dominant form-factor of the future. Until costs come down, these devices will not take off’.
Speaking of cost, as much as customers tend to complain about the pricing of Apple products, considering the current investigation into ‘competition in digital markets’, the Californian company is unlikely to raise prices on its repairs, especially when third-party repairs are substantially more affordable.
While Apple does stress that, ‘repairs performed by untrained technicians might not follow proper safety and repair procedures and could result in improper function, product quality issues or safety events,’ it does not take any actions to prevent users seeking out third-party repairs.