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Apple says it actually loses money every year in its repair programs

Sebastian Jimenez

Although Apple's participation in the smart phone market is not close to a level that justifies calling the company a monopoly power, lawmakers have recently taken up the idea of ​​investigating large technology companies for alleged antitrust behaviors. . In turn, a few months ago, Congress sent a letter to Apple looking for answers to a wide range of questions related to the way Apple conducts its business.

As expected, some of the questions sent to Apple demonstrate a clear lack of understanding of Apple's business and technology space in general. Citing just one example, Apple was asked how to select which applications "should share their revenue with Apple." You could think, with the App Store now more than 10 years, that lawmakers in charge of investigating Apple's business practices will know that developers are the ones who decide whether or not they charge for a particular application.

Despite that, Apple has answered the questions of Congress, and although much is traditional, there is an interesting fact that is worth highlighting.

Specifically, Congress asked Apple how much it earns from product repairs, to which Apple responded that it actually loses money on product repairs:

For each year since 2009, identify the total revenue that Apple earned from repair services

For each year since 2009, the costs of providing repair services have exceeded the revenue generated by repairs.

Apart from that, Apple also emphasized that it promulgates several rules around iPhone repairs as a means to prevent injuries. As an example, Apple says it prevents independent repair shops from accessing original Apple parts due to the following:

Repairs performed by untrained technicians may not follow proper safety and repair procedures and may result in improper operation, product quality problems or safety events. In addition, repairs that do not properly replace the screws or covers may leave loose parts that could damage a component such as the battery, causing overheating or injury. For these reasons, we believe it is important that repair shops receive adequate training when accessing spare parts and repair manuals.

And although the clinicians could make fun of that explanation, we have seen cases in which unauthorized repairs have caused the iPhones to catch fire. Apple's complete set of responses can be seen here.

Image source: Zach Epstein, BGR