Could Cost Apple Over $ 10 Billion Summary

Chuck Jones wrote the article, “A $29 Battery Could Cost Apple Over $10 Billion,” where he talks about how IPhone’s supply would decrease if the new battery becomes the better option for consumers. The IPhone 6, 7, and SE models have the ability to change their batteries at the cost of twenty nine dollars. This is a great possible opportunity to fix issues on the IPhone, by fixing their slowness on the phone and other issues involving the battery. This could be good for the consumers, but it could be detrimental to Apple itself. If consumers start to get their IPhone battery replaced instead of upgrading to the new IPhone then Apple could lose over ten billion dollars. Apple says that about thirty percent of people will continue to upgrade, leaving seventy percent of them choosing to just change the battery at the low cost rather than upgrading. (Jones, Chuck, “A $29 Battery Could Cost Apple Over $10 Billion”) The supply of IPhone seems to be decreasing if the new batteries became a hit.

This directly impacts the supply curve because the price would increase and the quantity would decrease, and the supply curve would shift to the left. Thus, the supply curve shifts and the determinant that is causing this shift is the factor of input. The factor of input is the determinate because the new low price of IPhone batteries at the cost of twenty-nine dollars is increasing demand, there is more want for the batteries, seventy percent of people choose battery over upgrading their IPhone (Jones, Chuck, “A $29 Battery Could Cost Apple Over $10 Billion”). This low cost of IPhone batteries is harmful to Apple’s revenue, as they can lose billions of dollars because of how much the demand is for the batteries