Very interesting that Apple included this as someone who took advantage of a $29 battery replacement for my 6S just last month. The chain of decisions that took place for this to happen should be a lesson for more companies.
I imagine it went something like this:
- Feedback that iPhones were shutting down unexpectedly due to degraded and/or defective batteries.
- Instead of shouldering the battery replacement immediately, the product team decides to change the performance envelope of the phone.
- The root issue is not addressed.
- Betterygate™ inevitably happens.
- Apple heavily subsidizes battery replacements for everyone
- Some people decide that they'll stick with their phone a bit longer than they otherwise would have, reducing iPhone sales.
- Apple misses their earnings target, likely costing them more in value than it would have cost them to address the root issue in the first place.
Of course there are other factors addressed in the letter, but this issue was notable enough to be included.