By Julie Verhage
Apple Inc.'s offer to replace iPhone batteries cheaply may cut sales of new handsets by millions of units this year, according to Barclays analyst Mark Moskowitz.
"Even a small percentage [of customers] opting for battery replacement over upgrade could have meaningful impact on iPhone sales," he wrote in a note on Wednesday.
Apple recently said it intentionally slows iPhones with older batteries to prevent the handsets abruptly shutting down. The Cupertino, California-based company stressed that it hadn't intentionally slowed the devices to encourage users to purchase newer models. In response to customer complaints, Apple apologized and cut the price of replacement batteries from $79 to $29 for many older iPhones.
While analysts agree this was a good public-relations move, some are concerned it will dent future sales of iPhones, a product that accounts for roughly two-thirds of Apple's revenue. The company's stock rose almost 50 percent last year, largely on hopes for a "super cycle" with the new iPhone X and 8, where a large number of users upgrade.