It can be tough in the repair industry, and no one knows that better than struggling corporation Apple. Poor souls... ;0)
Cupertino has long been criticized for trying to control what its customers can do with their products, and especially so for charging what critics have said in an unjustifiable mark-up on repairing everything from iPhones to MacBooks.
But it’s just not true, the iGiant revealed this week to US Congress: in fact, despite charging between double and triple what other repair shops charge for fixing problems, Apple (2018 profit: $60bn) actually loses money on its repair business.
Asked by the House Judiciary subcommittee to “identify the total revenue that Apple derived from repair services,” the Cupertino idiot-tax operation revealed that: “For each year since 2009, the costs of providing repair services has exceeded the revenue generated by repairs.”
That’s right, it may charge you $329 for a screen replacement that costs $100 everywhere else. Or $80 for a battery than costs $30 across the street. Or even $475 to replace a single key at an Apple store. But poor old Apple is making a loss every time.
Which is, of course, nonsense, though it’s interesting to explore how Apple can make the claim with a straight face. And the answer is creative accounting.