Ok, now this is interesting.
An article over on MarketWatch points out that Apple’s repair costs to fix an iPhone 5 with a broken screen have jumped to US$229 – more than the US$200 price of the device with a two-year contract, and more than a third of the US$650 cost of the phone without a contract. Select Apple stores offer the option of a US$149 repair. And for those who paid US$99 for AppleCare insurance, the replacement is just US$49.
The piece then cites that the replacement components for the iPhone 5 are much more expensive than similar parts for prior models — so expensive in fact that many independent repair services cannot compete. “Due to the high cost of replacement parts, we are not yet offering iPhone 5 repairs,” according to a statement on ComputerOverhauls.com, an online repair shop. “Currently, the Apple Store is the least expensive option for repairing damaged iPhone 5s.” Other services charge as much as US$250 for the repair.
Given current numbers, nearly one-third of iPhone users damaged their devices during 2012, according to a recent study by gadget insurer SquareTrade. Repairs have cost consumers nearly US$6 billion since the iPhone was launched in 2007 and apparently iPhones get abused more than iPads, only 10% of which were damaged, per the survey.
Despite this, iCracked — an independent firm that has technicians across the U.S. — charges half as much to fix an iPhone 4S screen (US$79 to US$99) as to fix an iPhone 5 (US$169 to US$199) thanks to tight control on iPhone 5 components in the market, Forsythe says. “Market forces determine the price,” he says. “Apple sells about 300,000 iPhones a day and, as the repair market grows, prices will get lower.”
“Apple controls everything from the manufacturing to the gear for the iPhone 5,” says Jeff Haynes, editor at deal site TechBargains.com. As the iPhone 5 is larger than the 4, the cost for replacement parts rises, he says. “Apple is trying to get people to sign up for Apple Care for US$99 and to rely on their services at the Apple store,” he says, “If you don’t, that cracked screen could cost you at least US$230.”
Thanks to do-it-yourself kits, it’s possible to replace the screen on an iPhone 4 for less than a quarter of that price. Adam Carey, a New York-based mobile development consultant, bought a DIY kit on Amazon.com for US$25 and followed instructions on iFixit.com, an online repair manual. The procedure took him two hours. “It’s not like snapping on a cover,” he says. “It’s like performing surgery. You need pretty steady hands.”
If you’ve been repairing iPhones and noticed a jump in component prices, please let us know about your experience in the comments section.