Ahmed El Nahas - SL Business IA
Ahmed El Nahas - SL Business IA
Ahmed El Nahas - SL Business IA
Standard Level
To what extent is the removal of accessories from Apple’s iPhone boxes affected its
2022/2023
Introduction………………………………………………………………………………………. 2
Methodology……………………………………………………………………………………... 2
Ansoff Matrix…………………………………………………………………………………….. 2
Product Development…………………………………………………………………….. 3
Perception Mapping……………………………………………………………………………… 4
Conclusion……………………………………………………………………………………….. 9
Supporting Documents………………………………………………………………………….. 11
Additional Sources……………………………………………………………………………… 12
Appendix………………………………………………………………………………………... 14
1
Introduction:
Apple Inc. is one of the most well-known tech companies in the world with a brand value
of $947.06 billion.1 It has a market capitalization of $2.294 trillion, which is the largest among
all other companies.2 Apple also has a market share of more than 50% in the U.S., hence
dominating that market.3 The company has decided to remove charging bricks and EarPods from
their iPhone boxes starting from the iPhone 12 series to go carbon neutral. However, customers
aren’t convinced by these claims because Apple’s net profit increased from $57.4 billion to $94.7
billion.4 This leads to the research question “To what extent has the removal of accessories from
Methodology:
This commentary will disclose the removal of accessories from Apple’s iPhone boxes
and how these actions have affected customer satisfaction and the company’s profitability
through the use of the Ansoff Matrix, Perception Mapping, and Net Profit Margin. The
information analyzed will be based on Apple’s annual report and statistics to help in the methods
being employed.
Ansoff Matrix:
The Ansoff Matrix is an analytical tool that is used by companies to be able to improve
2
1
Statista Research Department, and Jun 17. “Apple: Brand Value 2022.” Statista, 17 June 2022,
www.statista.com/statistics/326052/apple-brand-value/.
2
“Companies Ranked by Market Cap.” CompaniesMarketCap.com - Companies Ranked by Market
Capitalization, companiesmarketcap.com/.
3
Lovejoy, Ben. “IPhone US Market Share Hits All-Time High, Overtaking Android; Dominates Global
Premium Sales.” 9to5Mac, 2 Sept. 2022, 9to5mac.com/2022/09/02/iphone-us-market-share/.
4
(Supporting Document 3) “Annual Reports on Form 10-K.” Apple Inc., 25 Sept. 2021.
5
Peterdy, Kyle. “Ansoff Matrix.” Corporate Finance Institute, 24 Nov. 2022,
corporatefinanceinstitute.com/resources/management/ansoff-matrix/.
Product Development:
Product Development is risky and involves selling a new product in an existing market.6
Apple removed the accessories from its iPhone boxes to help reach its goals faster and achieves
higher sales revenue and profits.7 The company stated that more than 2 billion power adaptors
were owned by their customers, which was their reason for removing the charging bricks.
However, Apple has developed its chargers from 5W, which had a USB-A power adaptor to
20W which has a USB-C lightning adaptor. Many customers still have 5W chargers that charge
new iPhones at a very slow rate; therefore, they are forced to buy new 20W chargers. This would
increase carbon emissions because these new chargers would be shipped in separate boxes,8
which contradicts the company’s aim to go carbon neutral and lead to customer dissatisfaction.
Additionally, Apple wanted its customers to transfer from using wired charging to wireless
charging, hence, it introduced the new MagSafe on 13 October 2020 a wireless charger in the
same period that Apple removed the charging bricks from their iPhone boxes.9
Moreover, customers were frustrated that EarPods were removed from iPhone boxes.
However, most customers already own EarPods from iPhones they bought in the past.
Furthermore, Apple wanted to deviate customers towards buying AirPods, which are the same as
EarPods but completely wireless. Therefore, the removal of EarPods resulted in an annual
3
6
“2023 Business Management SL.” Kognity, app.kognity.com/study/app/2023-business-management-
sl/sid-92-cid-144381/overview/.
7
(Supporting Document 1) Darryl. “Has Apple Set the Right Trend by Removing Accessories from the
Box?” IGeeksBlog, 9 Sept. 2022, www.igeeksblog.com/apple-removing-accessories-from-box/.
8
(Supporting Document 2) le Roux, Jano. “Who Else Wants Apple to Put Back the Damn Charger in Your
Iphone Box?” Medium, The Startup, 7 Sept. 2022, medium.com/swlh/who-else-wants-apple-to-
put-back-the-damn-charger-in-your-iphone-box-b9d4cfa62b53.
9
(Supporting Document 1) Darryl. “Has Apple Set the Right Trend by Removing Accessories from the
Box?” IGeeksBlog, 9 Sept. 2022, www.igeeksblog.com/apple-removing-accessories-from-box/.
growth of 20% in the TWS (True Wireless Stereo) market from Q4 2020 to Q4 202110, and
increased AirPods sales revenue from $10.1 billion in 2020 to $12.1 billion in 2021.11
Additionally, most good android phones are more expensive than iPhones12, such as the Samsung
Galaxy S22 Ultra (Snapdragon), which is $1199, is more expensive than the iPhone 14 Pro Max,
which is $1099.13 Hence, the company created a problem and provided a solution to this problem
The company benefited from product development because it was successful in making
its customers buy new chargers and AirPods, hence increasing its revenue and profitability.
However, a limitation of this tool is that Apple won’t be able to determine the profits of their
new product, therefore not knowing if this new product will be profitable or not.
Perception Mapping:
4
10
(Supporting Document 5) “TWS Shipments Exceed 100 Million in Q4 2021.” Canalys Newsroom, 9 Mar.
2022, www.canalys.com/newsroom/worldwide-tws-shipments-Q4-2021.
11
Ferjan, Matija. “Airpods Facts 2023: Airpods Revenue, Release Date, Units Sold.” HeadphonesAddict,
19 Aug. 2022, headphonesaddict.com/airpods-facts-revenue/.
12
Why Do People Buy IPhones If They Don't Even Include Chargers and Headphones in the Box?” Quora,
29 Oct. 2020, www.quora.com/Why-do-people-buy-iPhones-if-they-dont-even-include-chargers-
and-headphones-in-the-box.
13
“Smartphone Rankings.” DXOMARK, www.dxomark.com/smartphones/.
Figure 1: Perception map on 9 different smartphone brands (based on the latest three phones
The perception map above was based on the testing of the phones and reviews according
to users.15 Using the three latest phones released by each phone brand in the perception map
according to “DXOMARK”, the average quality rating and the average price are stated in the
Table below
5
14
“Smartphone Rankings.” DXOMARK, www.dxomark.com/smartphones/.
15
“Smartphone Rankings.” DXOMARK, www.dxomark.com/smartphones/.
Table 1: Average Quality Rating and Average Price for Brands in Perception Map
battery)
14 Plus)
A53 5G)
found in
“DXOMARK” are
Axon 20 5G)
6
Sony (Xperia 5 IV, Xperia 110.89 $1032.33
IV)
found in
5G and 7.2)
GT Neo 3)
and 12T)
According to the perception map graph and Table 1 figures, even though Apple
customers were dissatisfied with the decision of removing accessories from iPhone boxes,
customers choose Apple over its competitors because Apple phones present the highest quality
among its competitors, even higher than Huawei and Samsung. Furthermore, as stated in the
Ansoff Matrix, Apple’s average prices are relatively lower compared with its competitors. To
add on, most of Apple’s competitors are now shipping their phones without chargers like Apple,
7
16
Udin, Efe, et al. “Samsung Will Not Include a Charger in the Box of The Galaxy a Series.” Gizchina.com,
7 Mar. 2022, www.gizchina.com/2022/03/07/samsung-will-not-include-a-charger-in-the-box-of-
the-galaxy-a-series/.
17
Lancaster, Marco, et al. “Huawei Will Stop Supplying Its Smartphones with a Charger in the Box.”
Gizchina.com, 13 Apr. 2021, www.gizchina.com/2021/04/13/huawei-will-stop-supplying-its-
smartphones-with-a-charger-in-the-box/.
18
Uche, Onyebuchi. “Xiaomi Redmi Phones to Ship without Chargers in the Box.” AdimorahBlog, 26 Aug.
2022, adimorahblog.com/redmi-phones-to-ship-without-chargers-in-the-box/.
19
Krishna, Sai. “Oppo Phone Charger Will Not Come in the Box for Some Models from next Year.”
91mobiles.Com |, 2 Sept. 2022, www.91mobiles.com/hub/oppo-phone-charger-not-in-the-box-
models-next-year/.
The benefit of using this perception map is that it shows each company’s position in
terms of price and quality among its competitors. However, the limitations of this method are
that it doesn’t show the level of competition, production capacity, and brand image.
Net profit margin is a financial ratio used to calculate the net profit over the total sales
Using Apple’s annual report, Apple’s net profit margin will be calculated for the year
ending September 26, 2020, which is before removing the charging bricks from iPhone boxes,
and for the year ending September 25, 2021, which is after removing the charging bricks from
Apple’s Net Profit Margin for the Year Ending September 26, 2020 (before removing the
charging bricks):
57,411,000,000
×100=20.91 %
274,515,000,000
People’s Net Profit Margin for the Year Ending September 25, 2021 (after removing the
charging bricks):
94,680,000,000
×100=25.88 %
365,817,000,000
8
20
CFI Team. “Net Profit Margin.” Corporate Finance Institute, 26 Nov. 2022,
corporatefinanceinstitute.com/resources/accounting/net-profit-margin-formula/.
21
(Supporting Document 3) “Annual Reports on Form 10-K.” Apple Inc., 25 Sept. 2021.
According to the calculated results, it is clearly shown that in 2021 Apple increased its
profits by 4.9% compared with its profit in 2020, hence showing that Apple’s real reason for
removing the accessories from their iPhone boxes is to increase their profits. It is even proven
that Apple has saved about $6.5 billion from removing accessories, and this value might be
between $10-$15 billion if the shipment costs and packaging raw materials are factored in. 22
Furthermore, Apple earned $12.1 billion from selling Air Pods in 2021 increased from $10.1
billion in 2020. Overall, Apple’s profits increased from $57.4 billion in 2020 to $94.7 billion in
202123 because iPhone sales increased from 196.9 million iPhones in 2020 to 242 million
accessories didn’t impact company’s profitability.25 However, it increased its sales and profits
which reveals that customers still prefer iPhones over other brand phones due to their high
The benefit of using this method is that Apple can determine how profitable the company
is, hence deciding whether they need to improve in some parts of the business or if are they
satisfied with their profits. However, this method won’t show what areas inside the business need
9
22
(Supporting Document 2) le Roux, Jano. “Who Else Wants Apple to Put Back the Damn Charger in Your
Iphone Box?” Medium, The Startup, 7 Sept. 2022, medium.com/swlh/who-else-wants-apple-to-
put-back-the-damn-charger-in-your-iphone-box-b9d4cfa62b53.
23
(Supporting Document 3) “Annual Reports on Form 10-K.” Apple Inc., 25 Sept. 2021
24
Curry, David. “Apple Statistics (2022).” Business of Apps, 28 Oct. 2022,
www.businessofapps.com/data/apple-statistics.
25
(Supporting Document 2) le Roux, Jano. “Who Else Wants Apple to Put Back the Damn Charger in Your
Iphone Box?” Medium, The Startup, 7 Sept. 2022, medium.com/swlh/who-else-wants-apple-to-
put-back-the-damn-charger-in-your-iphone-box-b9d4cfa62b53.
Conclusion:
To conclude, customers overall were not satisfied with the decision Apple took because they
believe that Apple mainly removed accessories from their iPhone boxes to cut costs and increase
profits. This is shown in Product Development, where Apple has developed its charge from 5W
to a 20W charger that was removed from the iPhone box, and also launched the AirPods, a
completely wireless version of the EarPods that were also removed from iPhone boxes. Even
though Apple has received negative feedback on their removal of accessories from iPhone boxes,
the real reason why customers choose iPhones over other phone brands from the Perception Map
is that Apple had the highest phone quality, and its average price was lower than some of its
competitors. Another reason is that most phone brands nowadays sell their phones without
chargers in their phone boxes like Apple. To add on, it was shown that Apple’s net profit margin
increased after removing the charging bricks, which illustrates that Apple’s removal of the
charging bricks from their iPhone boxes increased their revenue, hence increasing their profits
and Apple’s customers still prefer buying Apple iPhones over other brand phones.
9
22
(Supporting Document 2) le Roux, Jano. “Who Else Wants Apple to Put Back the Damn Charger in Your
Iphone Box?” Medium, The Startup, 7 Sept. 2022, medium.com/swlh/who-else-wants-apple-to-
put-back-the-damn-charger-in-your-iphone-box-b9d4cfa62b53.
23
(Supporting Document 3) “Annual Reports on Form 10-K.” Apple Inc., 25 Sept. 2021
24
Curry, David. “Apple Statistics (2022).” Business of Apps, 28 Oct. 2022,
www.businessofapps.com/data/apple-statistics.
25
(Supporting Document 2) le Roux, Jano. “Who Else Wants Apple to Put Back the Damn Charger in Your
Iphone Box?” Medium, The Startup, 7 Sept. 2022, medium.com/swlh/who-else-wants-apple-to-
put-back-the-damn-charger-in-your-iphone-box-b9d4cfa62b53.
Bibliography
Supporting Documents:
Darryl. “Has Apple Set the Right Trend by Removing Accessories from the Box?” IGeeksBlog, 9
le Roux, Jano. “Who Else Wants Apple to Put Back the Damn Charger in Your iPhone Box?”
the-damn-charger-in-your-iphone-box-b9d4cfa62b53.
www.businessofapps.com/data/apple-statistics/.
“TWS Shipments Exceed 100 Million in Q4 2021.” Canalys Newsroom, 9 Mar. 2022,
www.canalys.com/newsroom/worldwide-tws-shipments-Q4-2021.
10
Additional Sources:
Statista Research Department, and Jun 17. “Apple: Brand Value 2022.” Statista, 17 June 2022,
www.statista.com/statistics/326052/apple-brand-value/.
Capitalization, companiesmarketcap.com/.
Lovejoy, Ben. “IPhone US Market Share Hits All-Time High, Overtaking Android; Dominates
market-share/.
management-sl/sid-92-cid-144381/overview/.
Ferjan, Matija. “Airpods Facts 2023: Airpods Revenue, Release Date, Units Sold.”
Udin, Efe, et al. “Samsung Will Not Include a Charger in the Box of The Galaxy a Series.”
charger-in-the-box-of-the-galaxy-a-series/.
Lancaster, Marco, et al. “Huawei Will Stop Supplying Its Smartphones with a Charger in the
supplying-its-smartphones-with-a-charger-in-the-box/.
11
Uche, Onyebuchi. “Xiaomi Redmi Phones to Ship without Chargers in the Box.” AdimorahBlog,
Krishna, Sai. “Oppo Phone Charger Will Not Come in the Box for Some Models from next Year.”
box-models-next-year/.
corporatefinanceinstitute.com/resources/management/ansoff-matrix/.
CFI Team. “Net Profit Margin.” Corporate Finance Institute, 26 Nov. 2022,
corporatefinanceinstitute.com/resources/accounting/net-profit-margin-formula/.
12
Supporting Document 1:
Darryl. “Has Apple Set the Right Trend by Removing Accessories from the Box?” IGeeksBlog, 9
SEPTEMBER 9, 2022
With the iPhone 12 series introduction, Apple stopped including chargers and
headphones with iPhones. At the time, Apple claimed it was doing so to go
carbon neutral by 2030. It’s been two years since, and several manufacturers
have jumped the bandwagon of omitting accessories.
Apple claims, when put together, these changes will cut 2 million metric tons
of carbon emissions annually. It is the equivalent of removing around 450,000
cars from the road in a year. And iPhone users already have charging
adaptors for their older iPhones anyway.
So, how is any of this wrong? Is there something Apple is not telling us? Well,
there might be something!
13
What is Apple not telling us?
Apple took the saying, “A penny saved is a penny earned,” and put it into
action like no other. How? Well, cutting accessories from the box only helped
the company get faster to their goals.
So, users have to buy new adapters from Apple, which increases not only the
company’s profits but also carbon emission as there’s extra packaging,
transport, etc., of a product that would have already been within the box.
Doesn’t it seem like Apple is contradicting itself?
Right now, it certainly looks like Apple is just cutting costs and trying to make
more profits. Don’t believe me? Well, Apple made about $6 billion by not
providing accessories. In the long run, I hope this move helps make a
difference in the environment.
14
3. Portless iPhone?
iPhone loses the power adaptor from the box as soon as it introduces
MagSafe wireless charging and accessories compatible with it. Was it a
coincidence? Evidence doesn’t favor the argument. Also, don’t tell me you
haven’t heard rumors stating that Apple would soon omit the Lightning port
and provide a portless iPhone.
Wireless audio and wireless charging are already here. The last step would be
transferring data at higher speeds, and Apple is also said to be working on the
same.
Does it seem like I’m portraying the Cupertino tech giant in a good light? Not
entirely, but hear me out. Apple has maintained the $999 price point even
though prices for components have been on the rise not only due to inflation,
but the tech industry, in general, has been facing issues like chip shortage,
and well, oh well, all of us have been through the pandemic together so that’s
another aspect we can’t ignore.
15
$90. And that is when accessories disappeared from the box. Another
coincident?
Also, no, I am not ignoring the fact that Apple spends most of its money on
Research and Development, and since the iPhone X, iPhones have had a
similar design with a few minor tweaks here and there. So, that is another
reason Apple has been able to maintain the $999 price point.
Everyone criticizes Apple for omitting the headphone jack with the iPhone 7,
and rightly so; it led to TWS becoming mainstream. Not that it is a bad thing,
because TWS make taking calls and listening to audio convenient, but it adds
costs. However, Apple wasn’t the first manufacturer to omit the headphone
jack. OPPO did it long back in 2012 with its OPPO Finder.
16
It didn’t pan out as the company created a problem but didn’t have the proper
infrastructure ready to solve it at the time. The same cannot be said for when
Apple omitted the headphone jack. It created a problem and sold a solution,
i.e., the AirPods.
But what if you’re buying an iPhone for the first time or even upgrading from
an older iPhone? You will need to get a new power adaptor from Apple or any
third-party company just to charge your iPhones. This results in more carbon
emissions both in terms of packaging and transportation.
What are your thoughts on Apple not providing basic accessories in the box,
and how other smartphone manufacturers are catching up on this trend?
Share in the comments below. At this rate, no accessories in phone boxes
don’t seem too far away!
17
Supporting Document 2:
le Roux, Jano. “Who Else Wants Apple to Put Back the Damn Charger in Your iPhone Box?”
the-damn-charger-in-your-iphone-box-b9d4cfa62b53.
But worst of all, Brazil did this one day before Apple’s iPhone 14
launch.
Probably because the iPhone 14 will not come with a charging brick
either and Brazil doesn’t like the sound of that one bit.
18
In 2020, Apple removed the brick from the iPhone 12’s box.
What ticked me off more than the brick was that they removed the
EarPods too and most people didn’t even realize or seem to care about
it.
Apple’s removal of the brick and the EarPods left the world with a
woefully underwhelming iPhone unboxing experience.
“There are also over 2 billion Apple power adapters out there in the
world, and that’s not counting the billions of third-party adapters.
19
We’re removing these items from the iPhone box, which reduces
carbon emissions and avoids the mining and use of precious
materials.”
Apple argues that this change made the iPhone’s packaging smaller.
Pure greed.
20
It reminds me of the 2018 straw campaign that turned out to be
nothing more than a ploy to get people off the backs of the commercial
fishing companies actually doing damage to the ocean.
It is just such a tiny percentage of the waste stealing the spotlight from
much bigger polluters that actually need a mob of cancel culture
TikTokers putting cameras in their faces 24/7.
And the problem is people still need adapters to charge their phones.
Many are still stuck with 5W adapters that take light years to charge
newer iPhones.
That means if they want their iPhones to charge faster they will likely
need to order a 20W adapter from Apple. This adapter now needs to be
put into separate packages and shipped off by themselves. This means
significantly increased environmental consequences.
And besides that, with Apple’s chargers being so frail, many users
including myself run through multiple cables per device. It quickly
stacks 5 chargers if you’re heavily tech-reliant like me.
One computer
One for the car
One for the office
One for the kitchen
One for the bedstand
21
As a hardcore Apple fanatic, it is sad to admit that this has less to do
with saving the planet and more with cutting costs.
Reports have since revealed that Apple has saved at least $6.5B by
removing the accessories. Factoring in shipment costs and packaging
raw material costs, the savings may lie closer to the $10-$15B range.
“This means designing for durability and easy repairs by having swap
out modular components. It also means encouraging and facilitating a
second-hand reuse market for their phones. So while we welcome these
small steps in producing less waste on the fringes of their business, we
urge them to keep watering the fruitful seed of an idea, reuse, and
embed this into the core of their business plan.”
It’s easy to save the planet when it benefits your bottom line. But true
leadership is shown when you take action knowing that it will affect
your bottom line and still have the courage to push through.
Supporting Document 3:
22
“Annual Reports on Form 10-K.” Apple Inc., 25 Sept. 2021.
Supporting Document 4:
23
Curry, David. “Apple Statistics (2022).” Business of Apps, 28 Oct. 2022,
www.businessofapps.com/data/apple-statistics/.
iPhone sales
Similar to revenue, iPhone sales saw enormous growth between 2008-2015. There
was a steady decline in sales between 2015 to 2020, mostly due to increased
competition in China.
iPhone annual sales 2008 to 2021 (mm)
Note: Apple stopped reporting iPhone sales in Q4 2018. All values afterwards are
estimates. Sources: Apple, Canalys, CNBC, Gartner, Strategy Analytics
24
Supporting Document 5:
25
“TWS Shipments Exceed 100 Million in Q4 2021.” Canalys Newsroom, 9 Mar. 2022,
www.canalys.com/newsroom/worldwide-tws-shipments-Q4-2021.
26