Would you like to charge your phone? That will be $29.

Unlimited Power! (But the Opposite)

Apple’s rumored removal of the power brick from iPhone boxes…

I should start off by saying that I’m the guy who when Apple killed off the headphone jack on iPhones, I thought that was great. And even with the more recent rumors that they’d stop including wired headphones in the box with new iPhones, I think this makes sense (presuming they offer a discount on a pair of AirPods with the purchase). But the latest rumor, that Apple is likely also not including a power adapter with the forthcoming iPhone, seems a bridge too far, for even me.

Look, I get it. At this point, probably most people reading this have a handful, if not dozens, of power adapters laying around their house thanks in no small part to multiple iPhone purchases throughout the years.¹ That said, there exist people beyond those that read such posts. Wild, I know. And I think it’s wrong to assume that everyone is just like you or I. And whereas with headphones, you could still use the device without that accessory, without power, you can’t do much.

That’s the key in my mind here: Apple is (presumably) about to start selling a device — by far their most popular device and business — that no longer works right out of the box. To use the iPhone after that initial charge runs out, it will be BYOC (bring your own charger) or PUTC (pay up to charge).

Let’s be clear, assuming this rumor is true, Apple is undoubtedly not going to talk about this change when talking about the new iPhones in the fall. But they will have to let word trickle out one way or another for their side of the story. And that side will inevitably be that they’re doing this because environmentally, it’s the right thing to do. This will eliminate an enormous amount of eco-waste. Also, it will reduce the packaging footprint of the iPhone, which means that they’ll be able to ship the devices in a more ecologically sound way. And again, did they mention that most people already have a way to charge such devices? If not, they’ll mention it again.

None of those points are false, but let’s be honest here, that’s not why Apple is doing this. Here’s the breakdown in terms of order of importance as I see it:

1) Margins. The next iPhone’s margins are going to be under assault due to the ‘5G’ components, amongst other new technology. And COVID has altered the supply chain immensely. The charger may not seem like a huge margin savings, but it adds up in aggregate. Also, there’s up-sell opportunities galore with the new faster charging bricks — or, even better, Apple’s inevitably still-forthcoming wireless charging solution.²

2) Shipping. You know what else adds up in aggregate? Shipping these units from China. If Apple can make these boxes more svelte, they’ll pack more in. This helps the environment, in a way, but it helps the bottom line even more.

3) Transitions. The next iPhone — the one after this one — is already rumored to forgo wired charging entirely. If that’s the case, it may make some sense to move people beyond the notion of including a wired charger in the iPhone box now. Force more customers to get ready for the wireless charging revolution.

4) Environment. This is on the list. But it’s the last item on the list. Not the first item on the list.

I know that all sounds cynical, but come on, that is clearly what is happening here. It’s not all point number one, but it’s a combination of all four points with the first one being the most important in terms of deciding what to do here. They could have made this change at any point over the past few years with the same rationale. Yet they’re doing it this year.

Again, I’m sitting here shitting on a decision that is a rumor. But the source (which is a second source, no less) would seem to be credible enough that this is likely going to happen. And so maybe there’s still a chance to affect the outcome. Not within the boxes themselves — that ship has undoubtedly already sailed, even if the shipping containers haven’t yet — but perhaps there’s an opportunity to offer a power brick as a free add-on for those who want/need one at the time of an iPhone purchase.

Because again, it’s pretty dumb to sell a product without the means to actually be able to fully use it out of the box. And yet that’s exactly what Apple — a company which prides itself on that out-of-the-box experience — is doing here.

Farewell, old friend. Er, old fiend.

¹ And yes, for years, Apple included the dinky 5W ones that take forever to charge the phone. And yes, the other rumor is that the 5W chargers are going away entirely, to be replaced by a 20W charger, which itself replaces the more robust 18W charger as well. Assuming the price of the 18W holds (not a sure thing), the power brick will be $29.

² AirPower is dead, but it still seems like Apple is working on a wireless charging pad, of sorts. How much will it cost? Hard to say, but I’d guess in the $50 — $100 range.

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Writer turned investor turned investor who writes. General Partner at GV. I blog to think.