Apple has unveiled the iPhone 15 range with USB Type-C ports.
Apple has made a big move with its latest gadgets, including the iPhone, which accounts for more than 80 percent of the smartphone industry’s profits. It’s one of the most talked about issues in the tech world, as Apple generates significant revenue from the accessories that third-party vendors make for its products. How will this change affect the revenue of Apple, one of the most profitable companies in the world?
How does Apple make money through the Lightning port?
Apple introduced the Lightning port in 2012, with the launch of iPhone 5. It was a huge improvement over the micro-USB interface, which was mainstream at the time.
When accessory manufacturers make peripherals and cables for iPhones, they must apply for Apple’s Made for iPhone (MIF) certification. This certification is mandatory for the sale of an accessory through Apple’s official sales channels.
Since introducing the Lightning port more than a decade ago, Apple has earned tens of millions of dollars per quarter, according to a report. Bloomberg report.
Apple’s official financials show that revenue from wearable devices, home products and accessories grew from $30.6 billion to $41.2 billion over the past three years.
“During the application process, the product design must be adjusted repeatedly until all parameters meet Apple’s standards, which can take three to five months,” The National Business Journal said in a report.
Then there are the fees that companies have to pay to Apple. In addition to Apple’s $99 annual fee, manufacturers applying for MFi certification also pay $2,060 per factory audit, according to the Council for Science and Innovation Daily.
In addition, Apple makes money from the chip that is added to the Lightning cables.
Will the move to Type-C hurt Apple’s sales?
There are speculations that Apple’s cash inflow will be affected after the switch to the Lightning port. But some reports say the company may develop a certification chip specifically for the USB-C interface, which will be used in this year’s iPhone 15 series phones and related MFI accessories.
So the existing Type-C cables may not be recognized by the new iPhones, or may not be able to charge them quickly.
