Apple’s Profit to Increase with the New Dock Connectors

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(Last Updated On: August 14, 2013)

The decision switch made by Apple in using a smaller dock connector may be frustrating for some customers since their old accessories may become useless. Nevertheless, this important decision may increase the profit of all the manufacturers of iPhone accessories. In fact, Apple is expected to generate an income of $40 million in the next fiscal quarter due to the customer’s payment for new cables that work with the smaller dock connector. This is according to Mr. Michael Morgan, who is the senior analyst of ABI Research.

According to Morgan, Apple is shipping 47 million iPhone 5 across the globe. This is an estimate based on the standards. However, Morgan thinks that only 5 to 10 percent of all the customers will purchase the new cable. Others will rely only on using free cable that comes with the box. This means that if every cable is worth $20, then the expected income is $40 million for 2 million cables.

New Docking Stations Net Profit for Apple, Too

Aside from this, Apple is also said to benefit from the new docking stations that can cater to the smaller connectors of the iPhone. According to Morgan, a total of 5 to 10 million docking stations will be sold next year. Each station will cost around $150 to $175 per piece, which can generate a total profit of $1 billion.

The increase in revenue for Apple is greatly affected by the sales provided by the hospitality industries. Morgan thinks that a lot of hotels will purchase the docking radios to provide more service to their customers. In addition to this, those who are using a car charger will also need to buy an adapter that costs around $30. Nevertheless, this increase in income is only considered a small drop in the bucket since it can generate a total of $100 billion worth of revenue every year. As for the consumers, this can already add up to a very significant expense.

And Then There’s the Cases…

Aside from adapters, cables, and docking stations, cases are also very marketable with the new iPhone 5. This is due to the fact that the iPhone 5 is a lot thinner and longer compared to the previous models. According to the ABI, three-quarters of those who buy the new iPhone also purchase a protective case. Each case is worth around $18. If Apple is able to sell 58 million iPhone 5s, then case makers are expected to generate roughly $783 million for the year.

With all this money invested in a single device, consumers can be devastated when their precious iPhone 5 is damaged.  For all the protection and careful handling, accidents do happen.  Don’t rely on amateurs to fix your device if it’s broken — professional iPhone 5 repair can mean the difference between a fixed phone and further damage.