The lacking iPhone 12 charging connector is ready to gas one among Apple's hottest development areas
Customers at the Apple Store on George Street check out the new iPhone 12 on sale in Sydney, Australia on October 23, 2020.
James D. Morgan | Getty Images
Your new iPhone 12 comes without a power plug.
Yeah, that's annoying. And yes, that means you'll have to spend $ 19 on a plug that works with the new type of cable on the iPhone 12 for faster charging. (Don't worry, you can keep the plug and charging cable from your old iPhone and it will work with the new iPhone 12.)
Despite Apple's claims that the connector's absence was an environmentally friendly move, there is a surge in the hardware accessories and wearables category thanks to the sale of the connectors and the new ecosystem revolving around the iPhone 12's MagSafe charging system .
This category, which includes products like the Apple Watch, AirPods, chargers, and other accessories, is already showing promising growth. Revenue in Apple's third quarter rose nearly 17% to $ 6.45 billion. Apple is expected to release its fourth quarter fiscal year results on October 29th. However, it does not count sales of the iPhone 12 and related products that went on sale Friday.
Accessories and wearables follow a similar story to Apple's service business, which includes digital products like streaming music and iCloud storage. As iPhone sales stopped growing, Apple has developed new digital products to get more out of its user base of approximately 1 billion iPhone users. Apple had revenue of $ 13.16 billion in the third quarter of fiscal year, up nearly 15% year over year.
Between the missing plug ($ 19), the lack of wired headphones (wireless AirPods starting at $ 159), and the new MagSafe charger ($ 39) for the iPhone 12, Apple is expected to see a significant increase in this quarter List accessory sales. In addition, Apple is offering a new version of the HomePod speaker for $ 99 that will go on sale next month. Starting at $ 199, the Apple Watch is cheaper than ever.
Deutsche Bank analysts picked up this potential growth in a research note earlier this week.
"While (Apple) claims they are not sending headphones or a charging cube with the iPhone to help protect the environment (they include a charging cable), the reality is that such a decision could also translate into a financial benefit for the company." Deutsche Bank analysts have written.
With a view to the short-term sale of the iPhone 12, Apple's new magnetic charging system, MagSafe, lays the foundation for even more accessories for the iPhone. There have long been rumors that Apple's ultimate goal is to remove the charging port in the iPhone, as it did with the standard headphone jack, which in turn will encourage iPhone owners to buy even more extras for their devices.
Perhaps Apple is being sincere in saying that removing standard accessories from the iPhone box is good for the environment. If you ship tens of millions of iPhones per quarter with less packaging and plastic, it is sure to have a positive effect on the environment. On this scale, however, it also prompts iPhone customers to buy more high-margin extras from Apple so they can get the most out of their iPhone. And that makes the income grow.