Uncovering the Reasons behind Apple Selling the iPhone 12 without a charger

Jakarta, CNBC Indonesia – A number of Apple fanboys and fangirls are still upset with Apple’s decision to sell the iPhone 12, iPhone 12 mini, iPhone 12 Pro, and iPhone 12 Pro Max without a charger and earphones. This decision turned out to benefit Apple from a business standpoint.

At the launch event for the iPhone 12 Series, Apple said the decision to sell the iPhone 12 without a charger and earphones was to protect the environment. For less mining, packaging and carbon dioxide emissions that make the Earth even hotter. This decision is also to reduce electronic waste.

But for some analysts there is a business reason for selling the iPhone 12 without this charger and earphones. Namely, reducing costs with efficiency and increasing the company’s revenue margin.

According to CFRA Research analyst Angelo Zino, the components of 5G technology are more complex and expensive, this will make the price of the iPhone 12 more expensive than the iPhone 11. If it is too expensive, this product will not sell.

The radio frequency components alone in the iPhpne 12 cost 30-35% of the total cost and are more expensive than what they spent on the previous iPhone. How to work around this, Apple cut production costs by putting fewer accessories into the iPhone 12 box.

“Apple will seek to cut costs in other aspects of the phone,” said Angelo Zino as reported The Verge, Sunday (18/10/2020).

Gene Munster, analyst at Loup Ventures, said the iPhone 12 sold without a charger and earphones will increase Apple’s gross profit 1%. Even though it is small, it implies the stability of the company’s profits.

“I usually would just think of this as a maneuver to maintain the profitability of the current iPhone,” said Gene Munster.

But if the iPhone 12 sold without earphones manages to increase the purchase of AirPods, this will be a victory for Apple, not for the planet. The sale of AirPods will increase the company’s revenue.

(roy/roy)

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