Apple just disclosed that it loses money on device repairs every year

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John Gress/Reuters

  • Apple loses money on device repairs every year, the company disclosed this week.
  • The tech giant still doesn't want to authorize independent repair stores to fix Apple products, arguing that doing so would reduce the quality and safety of repairs.
  • Apple made the disclosure in response to questions from the House Judicial Committee, which is investigating the company for possible anticompetitive practices.
  • Visit Business Insider's homepage for more stories.
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Apple hasn't turned a profit on repairing people's broken devices in the past decade, the company disclosed this week.

The company made the disclosure in response to a House Judicial Committee probe, which is investigating whether Apple engages in anticompetitive practices to edge out competition when it comes to repairs and third-party apps.
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Apple maintains strict control over who can repair users' broken iPhones, iPads, and Macs - it doesn't provide spare parts or repair manuals to independent repair stores, and only allows its affiliated "Apple Authorized Service Providers" to fix devices.

In a letter sent to Apple in September, lawmakers pressed Apple on its refusal to allow independent repair stores to fix broken devices, asking if that's "just a way for Apple to elbow out competition and extend its monopoly into the market for repairs."

Apple's vice president of corporate law, Kyle Andeer, responded to lawmakers' questions this week, arguing that Apple does not allow third-party repairs in order to ensure the quality and safety of repairs. In response to a question about how much revenue Apple makes from repair services, Andeer said the company doesn't turn a profit - it actually loses money fixing devices.
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"For each year since 2009, the costs of providing repair services has exceeded the revenue generated by repairs," Andeer wrote.

Read Apple's full response to lawmakers' questions here.Signup Today: Free Daily Newsletter from Business Insider Intelligence
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