Chuck Jones has an interesting post up on the Forbes site, in which he theorizes about how much ‘bendgate’ could wind up costing Apple — with an (unlikely) maximum hit potentially being in the hundreds of millions.
Jones weighs up the different ways Apple and customers may respond to the meme, including consumers potentially being put off buying the new iPhone 6 Plus, to Apple undergoing a full-on redesign.
Assuming the former, Jones suggests that despite the incident having reportedly affected just 9 users, the bad publicity could put off a small percentage of would-be customers. If 100,000 people decide not to buy an iPhone 6 or 6 Plus as a result (despite the fact that the iPhone 6 is apparently unaffected by bendgate) this could decrease Apple’s revenue by around $80 million, based on an average of $799 per iPhone.
If that same number of people meanwhile decide to buy an iPhone 6 rather than a 6 Plus, then Apple’s revenue takes a $10 million hit.
Should Apple take back the damaged iPhone devices and eat their cost rather than try to refurbish the units, the 100,000 units costs Apple $52 million based on an average cost of $799 per iPhone.
Finally Jones says that a complete redesign could set Apple back “tens if not hundreds of millions of dollars.”
While the figures he’s chosen are arbitrary, however, and should be taken with a pinch of salt for that reason, it’s worth pointing out that even if the number is accurate 100,000 phones or customers still represents a tiny fraction of the total number of iPhone 6 and 6 Plus devices out there. In the handsets’ first weekend on sale they sold 10 million+ units. Apple alone is set to make $37-40 billion for the September quarter.
As for Jones’ workings, there’s absolutely no chance Apple recalls the iPhone 6 for a redesign. What’s most likely is that the company will simply wait for this storm-in-a-teacup to blow over. As with ‘antennagate’ we may get a free case for the iPhone 6 Plus (or even $15), but given the tiny numbers of actual complaints Apple’s received, even that seems unlikely.
When even analysts are calling the feeding frenzy of bendable smartphones “irrational” you know things have gotten out of hand.
How do you think Apple should handle ‘bendgate?’
Luke Dormehl is a U.K.-based journalist and author, with a background working in documentary film for Channel 4 and the BBC. He is the author of The Apple Revolution and The Formula: How Algorithms Solve All Our Problems … and Create More, both published by Penguin/Random House. His tech writing has also appeared in Wired, Fast Company, Techmeme and other publications.
45 responses to “This is how much Bendgate could cost Apple”
If Apple could weather the far worse antenna design flaw in iPhone 4, they’ll certainly be able to weather a bend. They might want to get ahead of the curve and offer a free case though.
Can I give you extra points for good use of “curve.” ;)
I’m sure Apple tech support will be bezier than normal.
I’m sure they could with crackgate, dropgate, or shattergate also being a topic.
No pun intended right?
yes, his comment is straight as arrow.
I predict the iPhone 6 and 6 Plus will go on to become the best selling smartphones in their size categories and perhaps the best selling models of the iPhone in all time.
No issues here. Just have a simple case and think the rest of these stories are stupid.
I think you are absolutely bang on there, I picked my iPhone 6 up last weekend and after owning every single iPhone i can safely say this is by far the most lust worthy and beautiful looking iPhone well phone in general.
People are going to buy this phone even people who were in the past put off and pro android because of the larger screen are now switching sides to the bigger iPhones.
It’s funny how every time Apple introduces a new iPhone, a couple of days later a ‘something’-gate happens. Now I’m not saying there’s no smoke without fire, but I just wonder if it’s not Google or Samsung who’re behind the bent iPhone videos posted to Youtube…
Mac blogs are about generating ad revenue. This means no matter how slow it is SOMETHING has to be put up on this page that draws eyeball/clicks. Apple delivers iOS 8 and the iPhone 6. The Blogs get to post opinion about the software and hardware for roughly a week and then most of us are fatigued. Since Apple delivered iOS 8 without Healthkit, Homekit and Cloud Drive that reduced the amount of discussion. Enter the infinitesimally small Bendgate issue yet that hasn’t stopped many of these sites from creating 4 articles or more.
I understand this is a business but my time is one of my most precious commodities and the proliferation of annoying ads and banal topics like Bendgate will eventually “thin the herd” especially if advertisers decide their ROI isn’t good and stop paying the same rates.
Its real problem is a badly designed metal insert behind the volume buttons. http://imgur.com/gallery/FBegH
This probably is the cause, if the problem is real at all.
Re: “Should Apple take back the damaged iPhone devices and eat their cost rather than try to refurbish the units, the 100,000 units costs Apple $52 million based on an average cost of $799 per iPhone.” It would be better to use a figure of about $200-250 for this; that’s their material cost per unit.
Good point.
9 bent phones. Give me a break
Why exactly would this be Apple’s fault if you abuse your phone.
You don’t buy a car, and then ask the car manufacturer why the panel bends when you smash it in to another car.
If you can’t be bothered to look after your expensive phone then your basically an idiot
*You’re
I think you will find ‘your’ is the correct spelling
You’re or You are expensive phone would be incorrect
The correct use of ‘you’re’ would be.
You’re the type of bellend who bends their iPhone
It’s the last sentence “then YOUR basically an idiot” is the one in question.
Ok busted :)
Apple shouldn’t need to do anything, but I think they may be forced to by the media. Apple has become so large and so prominent in culture that they are now an easy target. ‘News’ articles written by suedo journalists, with research techniques that are limited to the top three returnes in a Google search and do not include analytical thinking, are the true cause of bendgate.
If 9 people had jammed a Galaxy S5 into jeans so tight that medical experts would consider them the top layer of skin, this would not have made the slightest ripple.
Media hype
If I wanted to I can break my phone in half
They will probably offer users option to return it or get a case for free. It will be a loss but not as big as people are making it out to be.
Honestly, I don’t think Apple even has to offer up a free case. This isn’t at all like Antenna-gate where “apparently” every iPhone was affected by the death grip. In this instance, a handful of morons weren’t aware that extreme forces will bend anything of metal construction. What’s really sickening though, are the asshats who for lack of any glaring shortcomings, decided to intentionally destroy perfectly good iPhones for the publicity.
A couple of more U2 albums for everyone.
Why are we still talking about this?
Or that “viral” video is not being honest? Which seems more likely IMO.
http://www.businessinsider.com/bendgate-truthers-claim-to-have-found-the-real-story-behind-the-flexible-iphone-6-2014-9
http://www.pocket-lint.com/news/131127-apple-on-iphone-6-plus-bendgate-extremely-rare-with-only-9-complaints-of-bending-so-far
https://www.reddit.com/r/apple/comments/2hhvzs/clock_inaccuracies_bring_up_questions_about/cksw60b
There are very few people who got an Iphone 6 plus since the launch. Most people, including me will receive them in the next month or so. Wait til then, and then lets see how many bendable iphone 6 pluses there are!
Few? 10.6 million iPhone 6s have been sold in just the first few days.
Great. Maybe this will teach Apple to stop making their phones too thin. Yes, they’re too thin to hold comfortably and reliably.
100% of their case design goes into how sleek it looks and 0% into ergonomics and hand holdability.
This phone needs a case to add rigidity, protection, and grippability. That should have been taken care of by Sir Jonathan Ive and not case manufacturers.
I’d rather have a lousy-looking but strong iPhone body and elegant, customized cases than the other way around.
There will be no redesign. There is nothing wrong with the iPhone6’s design. And I don’t want them to redesign it to a thick brick just because of some reckless idiots who decided to sit on their iPhones. No thanks. But I do hope though that it would turn a lot of people off so I could already walk in an Apple store and get my new iPhone6 plus.
Apple could consider a return policy for bended phones, but only if it happens within 6 months after purchase (less reason to bend it on purpose for a new phone) and after visual inspection. This should make customers feel safe.
They’ve already said they will exchange them upon inspection (making sure people aren’t purposely bending them).
If it’s a legitimate design flaw, fix it. How this got so out of hand when you have 9 out of 10 million so far reporting in is testimony to the fact that Apple is held to a completely different standard that another manufacturer of any other device or product. The reality is Apple by having 9 out of 10 million fails is doing an incredible job of manufacturing these devices and the numbers should be looked at as great news. With a fail rate of about 1 in a million I have to applaud Apple. Those are incredible numbers.
You’re putting it your pocket incorrectly.
If you watch the video in question you will see that the phone starts out with the time 2:26 on it. It ends with 1:58. Different phone? Editing? Kind brings it into question hu?
“This is how much Bendgate could cost Apple”
Another in a seemingly endless stream of completely BS “articles” from Cult of BS. I guess you think this crap is working, but it’s only driving away readers… like me. Yeah, you’re probably getting some clicks and taps, but that’s about over from formerly faithful readers… like me.
yeeeeeeeeeeet youre still on here reading and posting responses why?
Here’s my response to you, and you alone, for no one else to see. Just between us…
FU
Mean while I’m enjoying my iphone 6
Complete and utter bullshit, either fraud, retards or both!
This irrelevant story already has mold growing on it. Apple’s iPhone 6’s have been proved structurally worthy and shown to have been well tested by Apple and Consumer Reports which states some premium Android phones tested worse like the HTC One. All still were in the acceptable range. iOS 8.02 update has come out and that fire is out too. None of this will effect Apple long term and they learned a few lessons about releasing updates without adequate testing on their new iPhones.
We’ll said sir, thank you.