this post was submitted on 11 Apr 2024
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I'm wondering about that. I've worked with several manufacturers, and their most profitable segment is parts. If you ever want to get the highest annual bonus, work for the parts devision.
Manufacturers of what? Selling and replacing car parts is a much different proposition than trying to replace semiconductors inside an earbud.
If the thing you're selling costs $100,000, a separate parts stream makes sense, because the skilled labor that goes into replacing parts in a used device is worth the cost, compared to throwing it all away and starting with the new thing.
If the thing costs $100 and skilled worker time is at $50/hour, there's just not much room for repairs to be cost effective, and repairs then become more of a reflection of one's internal values around reducing waste or tinkering for fun than an economically feasible activity.
Anything that's repairable is by component (main board, sound card, battery, camera, case, etc.). It was nice when we could swap batteries in cellphones. I have a Samsung S24 Ultra that came with a promise of 7 years of updates but the battery will degrade well before that and will cost $200-300 to pay a repair shop to replace because of the need of specialized tools. With my old Samsung Note 1, I could get a new battery for $20.
Why do you think they all opposed right to repair?
And specifically, right to open repair? They’ll happily send you a $600 TPM-locked biometric sensor, because they would control the market and ROI, but won’t let you buy a $90 alternative from someone else.
What? Why would the battery replacement cost $200-300? That seems a bit out there; authorised Apple resellers here replaces iPhone batteries for $80, that's work and battery. That's digestible at least, but still unreasonable in my opinion. I'd prefer to return to the days of feature phones where you could slip off the back and just slot in a new battery you picked up at the local electric parts store for $15-30.
But not for overall profit
Yes, for total corporate contribution margin.