As the iPhone 15 launch event approaches, overseas media have basically confirmed that Apple’s iPhone 15 will use a type-C interface and will not include a certification chip. This move will cause Apple to lose tens of billions of dollars in revenue and its profits will also drop sharply.
The European Union and Apple are fighting wits and courage. Over the years, the European Union has repeatedly fined Apple and asked Apple to make corrections. However, Apple would rather pay the fine than bow down until the Netherlands imposed heavy penalties on Apple. At that time, the Netherlands asked Apple to intervene in third-party app stores and payment tools, but Apple refused to accept it, so the Netherlands fined Apple 5 million euros a week, eventually forcing Apple to bow down and introduce third-party payment, reducing commissions.
The Dutch’s tough measures against Apple worked, and the EU saw the hope of changing Apple, so it just seized the opportunity and asked Apple to introduce the type-C interface. Under the EU’s strong request, Apple compromised, but then it was reported that Apple’s plan The authentication chip was introduced on the type-C interface. However, the European Union later warned Apple that it must adopt the universal type-C interface and cannot use the authentication chip to exclude the universal USB-C data cable. Now the iPhone 15 finally fully complies with the requirements of the EU.
Apple’s insistence is that this is a lucrative business. Apple’s lighting data cable and charger cost as much as 149 yuan, while the general-purpose type-C interface charger and data cable only cost about 30 yuan, forcing users to buy lighting data cables. It can bring Apple tens of billions of dollars in revenue every year, 70% of which is profit. Of course, Apple does not want to give up this part of the business. This is the reason why it has repeatedly insisted on using the lighting interface.
The second is to maintain Apple's hardware ecology. Apple's current Mac, iPhone, iPad, etc. all use its own chip design and operating system. Consumers want to get a good experience and ensure the compatibility of these hardware. Not only need to buy these hardware, but also Even peripheral chargers, earphones, keyboards and other peripherals are purchased from Apple products, and the income and profits brought are even more amazing.
The third is to attack opponents. Many industries occupied by Apple are high-end markets. These high-end users have amazing spending power. Many accessory manufacturers hope to make money from Apple users. Even Apple’s competitors such as Android mobile phone companies also provide support for Apple. By sticking to its own hardware design, Apple can prevent competitors from taking advantage of it.
As Apple compromised under the high pressure of the European Union, other markets around the world began to take tough measures against Apple. Brazil has imposed heavy penalties on Apple’s behavior of not providing a charger and banned Apple from entering the Brazilian market. Sales were too small, and Apple didn't compromise.
The European market is Apple's second largest market, bringing more than 30% of Apple's revenue every year. Such a huge market has finally succeeded in forcing Apple to compromise. I believe China will quickly follow suit.
China is Apple's third largest market, bringing Apple more than US$60 billion in revenue each year. In recent years, Apple has accounted for nearly 80% of China's high-end mobile phone market. The growth of Apple's sales in the Chinese market has prevented the decline in iPhone sales. Of course, it is impossible for Apple to give up such an important market. It is expected that the iPhone 15 sold by Apple in the Chinese market will also provide a universal type-C interface.
Apple’s inability to be strong now lies in its own decline in innovation. Since Cook became CEO, Apple has gradually lost its innovation. Now many changes are copied from Android phones. Last year’s iPhone 14’s lack of innovation led to a decline in sales. Therefore, Apple's board of directors once asked to resign, and Apple, which has poor sales, now has no confidence to compete with the two major markets of Europe and China. Compromise is its inevitable option.