Report claims Apple saved $6.5 billion by removing charger and EarPods from iPhone cases

Removing charger and EarPods from iPhone box allowed 70% more devices to fit on a pallet

More boxes on a pallet would allow Apple to ship more phones to users at the same time. As a result, using smaller boxes would allow Apple to reduce annual carbon emissions by 2 million metric tons, the company said. This is equivalent to taking 500,000 cars off the road.

But not everyone believes Apple made the move, which has been copied by most major phone makers including Samsung and Google, to help the environment. While many would agree that Apple is removing the charger from iPhone cases for a “green” reason, the “green” they think of is the color of money.

The wise observer will note that Apple began this program with the release of its first 5G iPhone series, the iPhone 12. Could Apple have decided to offset the additional costs of including a 5G modem and other parts by taking the power supply and the EarPods ready to go?
According to Daily Mail, by eliminating the charger and EarPods from the box, Apple has saved a total of £5 billion so far. This equates to $6.5 billion. But Apple didn’t cut the price of its handsets when it removed accessories from the iPhone box. At the same time, many iPhone buyers who wanted to quickly charge their iPhone only had the 5W adapters that came with older models and were forced to spend $19 on a 20W charger and an extra $19 to replace the EarPods. .
Of course, we could short Apple here. After all, some iPhone buyers might have decided to replace the EarPods, which were free until Apple discontinued them, with a pair of AirPods currently priced at $129 and up.

If a consumer just wanted to replace the EarPods, that could be arranged for an additional $19. So even if an Apple customer just wanted to add a charging brick and the wired EarPods with their new iPhone, it would cost them an extra $38. When you consider the millions of iPhone units that Apple sells every year, that’s certainly a lot of money pouring into Apple’s coffers.

Reducing the size of the box and allowing 70% more devices on each pallet should help Apple cut its shipping costs by 40%, which should allow the company to reduce the price of the phone for consumers. Some analysts have calculated that Apple saves the equivalent of $35 on every iPhone sold. Yet there has been no cost cutting from the company.

Since announcing that it is removing the charger and EarPods from the iPhone box, Apple has reportedly shipped 190 million iPhone units. Adding up the amount of money Apple saved from this cost-cutting decision and adding the amount of money saved on shipping, we get the £5 billion (or $6.5 billion ) that the Daily Mail calculated. In other words, if Apple had passed on every penny of savings to its customers, the public could be $6.5 billion richer.

But okay, let’s say Apple could keep half of the amount it saved. It would still have saved the public $3.25 billion. And we’re not even including the amount of money the public spent on buying a new charger because they didn’t have one, or more likely, they wanted one that charged faster than 5W.

And we’re not even including the $293.4 million that the Daily Mail says Apple customers have been spending on accessories since the company became stingy with what it puts in the box with the iPhone.

So let’s look at it this way. Apple saved money on shipping and by not having to buy the charging brick and EarPods that went in the box. Not only did audiences not save money, but they also had to shell out to replace the props they wanted and were no longer getting “for free.”

That $6.5 billion goes straight to the bottom line, boosting Apple’s earnings and driving up Apple’s stock price. In turn, executives like Tim Cook profit to the tune of millions of dollars while the public pays to replace missing props. Good job if you can get it.

About Franklin Cheatham

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