Banking giant Barclays has slammed Apple's recent decision to provide customers with cut-price £25 replacements - slashed from £79 - deeming it catastrophic for sales of the iPhone.
According to Barclays analyst Mark Moskowitz, the company could end up losing more than just the cost of the discount, which the rattled company hurridly announced following claims that it had deliberately throttled discontinued devices via iOS updates.
It claims it did so to protect their devices from sudden and unexpected shutdowns caused by their degraded batteries being unable to run new operating system features.
This is a good PR move for Apple to resolve the issue [but] we are concerned it could be a mild headwind for iPhone unit sales
It isn't the first time, though, that Apple iPhone users have been plagued with battery-life issues, and the one particular to the iPhone 6S has been running for a number of months.
"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 the bank.
According to Moskowitz, as many as 77 per cent of iPhone users could be eligible to get battery upgrades, meaning that Apple will not only have to shell out a hefty sum of cash, but that many buyers will therefore put off buying a new iPhone.
"In our base case scenario, 10 per cent of those 519 million users take the $29 offer, and around 30 per cent of them decide not to buy a new iPhone this year," he said.
"This means around 16 million iPhone sales could be at risk, creating about four per cent downside to our current revenue estimate for c2018."
Barclays is neutral when it comes to commenting on Apple's stock. However, it criticised Wall Street for being "too optimistic about the iPhone X super cycle".
That being said, Barclays had some positive things to say about Apple. It believes that the tech firm's growing services and President Donald Trump's new tax law are good for business.
Last week, the company announced plans to replace old iPhone batteries after it was revealed that the company deliberately slows down the performance of older iPhones when new models are about to be launched - something that has been suspected for a long time.
Apple apologised, saying: "We've been hearing feedback from our customers about the way we handle performance for iPhones with older batteries and how we have communicated that process.
"We know that some of you feel Apple has let you down. We apologise. There's been a lot of misunderstanding about this issue, so we would like to clarify and let you know about some changes we're making."
It added: "First and foremost, we have never - and would never - do anything to intentionally shorten the life of any Apple product, or degrade the user experience to drive customer upgrades.
"Our goal has always been to create products that our customers love, and making iPhones last as long as possible is an important part of that."
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