Hey guys it’s Greg with Apple Explained and today we’re going to explore why Apple
repairs are so expensive.
Because if you’ve ever cracked your iPhone’s screen and taken it to the Apple Store to
get it repaired, you may’ve been shocked by just how pricey it was.
I recently shattered the corner of my three month old Apple Watch and getting the screen
replaced would’ve cost me $300, which is about 70% of the watch’s retail price.
So it made more sense for me to just buy a new one.
And stories like these have only become more common as Apple’s repair prices have been
on the rise.
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Now there is something I want to make clear before we talk about Apple in particular.
And that is, the repair cost of almost all electronics have been steadily increasing
for the past decade.
It’s certainly not a phenomenon exclusive to Apple.
I’m simply using Apple as prime example since it’s the company I’m most familiar
with and because they do happen to charge a little more for repairs than their competition.
So in order to understand why Apple’s repair prices are so high today, we have to begin
by taking a look at how their products have developed over the years.
Because it’s very easy to look at this issue and jump to the conclusion that Apple is just
being greedy and trying to make more money.
But it’s actually much more complicated than that.
Products like the iPhone, iPad, and MacBook have all changed in many ways since they were
first released.
And some of those upgrades came at the cost of repairability.
Because if you were around for the MacBooks early days, you’ll probably remember its
user replaceable battery that could easily be swapped out.
And this was considered by many to be a necessary feature.
Because that’s when the MacBooks estimated battery life was just five hours, about half
of what it is today.
So many users carried around a fully-charged backup to replace the battery once it was
depleted.
And the ability to instantly charge your notebook was a huge convenience for users on the go.
But in 2008 Apple released the new MacBook Air that featured a non-removable battery.
And at first, this decision didn’t go over well with customers.
Who could no longer enjoy the convenience of battery swapping, and would be forced to
pay for pricey battery replacements once it degraded.
But it didn’t come without it’s benefits.
The battery technology used in the original MacBook Air was pretty groundbreaking for
its time.
And it was the primary reason why the product even existed.
Because instead of using traditional cylindrical lithium-ion cells, Apple created custom lithium-polymer
cells that were thin and rectangular.
Which allowed the battery to fill up the entire volume of the Air’s chassis, leaving no
wasted space.
Also, by making the battery non-removable, Apple could do away with components that took
up valuable space for the battery.
And all of these changes allowed Apple to squeeze in 30% more battery, and make the
product dramatically thinner than any MacBook before it.
So for Apple, the benefits of a non-removable battery outweighed the drawback of more expensive
replacements and repairs.
Another good example is with the iPad.
Because when the original was introduced in 2010, it featured a non-laminated display.
Which meant the front glass was separated from the LCD panel underneath, and you could
actually see a small gap between the two.
So if you happened to crack the screen, it could be repaired fairly easily and affordably.
Since all that needed to be replaced was the front piece of glass.
But this changed beginning with the iPad Air in 2013.
It was upgraded to a laminated display.
Where the glass and LCD panel were actually fused together into one unit.
And just like with the MacBook Air’s battery, it came with advantages and disadvantages.
A nice thing was that the gap of air under the glass was no longer there.
So when you tapped on the display, the pixels were much closer to your fingertips which
made interactions feel more natural.
And this would become even more important when Apple introduced the Apple Pencil.
Also, the laminated display allowed the iPad to be even thinner which was a big selling
point of the iPad Air.
But the disadvantage was that if your iPad’s screen cracked, the front glass and LCD panel
needed to be replaced.
Which made the repair cost skyrocket.
So these examples demonstrate the struggle companies like Apple face when trying to create
the most appealing product on the market.
Because the reality is, for most customers, a thin and light device will always be more
desirable than a thicker, heavier device with a removable battery and non laminated display.
So it isn’t much of a surprise that companies like Apple don’t make repairability a priority
when designing products.
But there’s more to the story than this.
Because so far we’ve discussed why parts have become more expensive, but there’s
another element that has a far greater influence on repair costs, and that’s labor.
Because if you think about it, Apple products, with the exception of the Mac Pro, are all
made in China.
Where labor is cheap and assembly lines are efficient.
So labor costs per unit is kept to a minimum.
But when you go to an Apple Store to get something repaired, you’re essentially hiring a worker
from your home country to disassemble and reassemble your device by hand.
Which can be a very time consuming and challenging process.
Especially with something like the Apple Watch, which wasn’t designed to be taken apart.
And that’s why a screen replacement for the Apple Watch is actually more expensive
than the iPhone XS.
Priced at $300 compared to $280.
It isn’t the display itself that’s pricier, but rather the labor.
Now I want to discuss an issue that’s been brought up a lot lately, where Apple’s Genius
Bar workers incorrectly diagnose issues with products.
And this has resulted in users paying exorbitant repair fees for services they don’t even
need.
In fact, back when my Series 3 Apple Watch was experiencing random shutdowns, employees
at my local Apple Store advised me to purchase a battery replacement for $80 since it must
be degraded or faulty.
But I decided against it.
And after leaving my watch on its charger for over 24 hours, I never had an issue with
it shutting down again.
Now I don’t mean to suggest that Apple employees are maliciously misleading users into purchasing
repairs they don’t need, I just think when you have people working in a fast-paced retail
setting, decisions have to be made quickly.
And when wrong decisions are made, it comes at a significant expense of the users.
So considering how pricey it can be to repair an Apple product, I’d like to see more deliberate
care taken by the company to ensure issues are being correctly diagnosed.
I should also point out that Apple puts a lot of pressure on their retail employees
to attach AppleCare warranties onto as many product sales as possible.
And although they don’t earn a commission, employees do receive perks or punishments
depending on how many AppleCare warranties they sell.
I’ve even heard of workers being fired for failing to meet monthly sales goals for AppleCare.
And this shouldn’t be too surprising considering AppleCare is part of Apple’s services business.
A business the company has been growing aggressively for years.
In fact, services is Apple’s second largest source of revenue.
Ahead of the iPad and the Mac.
And this leads many to believe Apple’s trying to encourage sales of AppleCare by showing
customers how expensive repairs are out of warranty.
And while I believe there is truth to this, you also have to consider that most of Apple’s
repair prices aren’t that much more than their competition.
And as I mentioned before, I think it has more to do with how modern devices are being
made and how much labor is required to make the repair.
But I think the most concerning part of all this is Apple’s stance on their customers
right to repair.
Because under the current system, only Apple authorized repair shops have access to Apple’s
training, official repair literature, and opportunity to buy genuine parts directly
from Apple.
The problem is third party shops have to pay a fee to become authorized, and are only allowed
to make basic repairs.
In fact, one shop owner said, “If I became Apple certified, I would lose 75 percent of
my opportunities to do repairs on things and would have to send that business to Apple
for a small finder's fee.”
And because Apple has a monopoly on the majority of repairs, their costs tend to be higher
than necessary.
So several countries and US states are trying to pass right to repair laws.
Which would make it easier for people to repair their own devices by forcing manufacturers
like Apple to reveal repair information to the public.
It would also require them to sell spare parts directly to users and third party repair shops.
That way we’d have more options when it comes to making repairs, rather than being
forced to go to Apple and pay whatever price they’re asking.
Now this sounds like a reasonable law to prevents companies from monopolizing repairs of their
products, but companies like Apple have been lobbying against this kind of legislation
for years.
Their main argument is that being the sole provider of most repairs protects their intellectual
property, protects consumer safety, and protects device security.
And while there may be some truth to that, I think companies like Apple can implement
systems that give their users more control and more choice when it comes to who repairs
their products.
And the fact that most tech company oppose this concept only adds to the suspicion that
they are making a significant amount of profit from overpriced repairs.
So while the cost of parts and labor are a major reason for high repair prices, there
are other contributing factors.
Like the fact that almost every major tech company has a virtual monopoly on most repairs
made to their devices.
And this appears to be an important source of revenue, as they’re investing heavily
in lobbying against laws that would make it easier for users to repair their own products.
I just wish Apple, considering their prominence and size, would stand up for users control
over the products they own.
As this could help push the entire industry toward the democratization of product repairs.
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Alright guys, so that’s why Apple repairs are so expensive, and if you want to vote
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Thanks for watching and I’ll see you next time.