Report : Apple has made $6.5 billion by not bundling chargers, earphones with new iPhones

Apple has made an estimated £5billion (approximately US$6.53 billion) by no longer providing chargers and earphones with its new iPhones, claims a Daily Mail report.

The tech giant said the move, announced two years ago, was intended to cut waste and drew praise from environmentalists when it claimed it would reduce annual carbon emissions by two million tons, the equivalent of taking 500,000 cars off the road.

Since 2020, Apple has charged £19 (US$25) for a new plug or earphones. Critics argue that if it had passed on the full savings, including an estimated 40% reduction in shipping costs as smaller packaging allows 70% more devices on each pallet, iPhone prices would be lower.

The Daily Report says experts believe that Apple could be saving about £27 (US$35) on each phone. The analysis takes into account that while the adapters and earphones sell for £19 (US$25), they are far cheaper to produce.

Ben Wood, chief analyst at technology experts CCS Insight, told the Daily Mail: “Apple is the phone industry market leader in helping the environment, with removing chargers and headphones one of many things it is doing. But of course there is a cost saving to Apple in removing chargers and headphones when it sells iPhones.”

Last year a group of Chinese university students filed a lawsuit against Apple, demanding the company provide a charger for an iPhone they bought. They demanded Apple provide a wall charger for an iPhone 12 Pro Max purchased by one student, pay 100 yuan ($16) for breach of contract, and cover the legal fees. 

The plaintiffs also argued that Apple was only using environmental concerns as an excuse to promote its MagSafe chargers, since wireless chargers waste more energy than wired chargers.