Will Apple’s switch to USB Type-C affect it financially? Explained

Apple unveiled the iPhone 15 series with USB Type-C ports.

Apple made a major shift in its latest gadgets, including the iPhone, which accounts for more than 80 percent of the smartphone industry’s profits. It’s one of the most talked about things in the tech world, as Apple earns significant revenue from the accessories that third-party vendors make for their products. So how does this change affect the revenue of Apple, one of the most profitable companies in the world.

How does Apple earn through the Lightning port?

Apple introduced the Lightning port in 2012, with the launch of the iPhone 5. It was a huge improvement over the micro-USB interface that was mainstream at the time.

When accessory manufacturers build peripherals and cables for iPhones, they must apply to Apple’s Made for iPhone (MIF) for certification. This certification is mandatory for an accessory that can be sold through Apple’s official retail channels.

Since the introduction of the Lightning port more than ten years ago, Apple has made tens of millions of dollars per according to a Bloomberg report.

Apple’s official financial data has revealed that its revenue from wearable devices, home products and accessories has grown from $30.6 billion to $41.2 billion in the past three years.

“During the application process, the product design must be changed repeatedly until all parameters are up to Apple’s standards, which can take three to five months.” National Business Daily said in a report.

Then there are the fees that companies have to pay to Apple. In addition to Apple’s $99 annual membership fee, manufacturers applying for MFi certification also pay $2,060 per factory audit, according to Science and Innovation Board daily.

In addition, Apple profits from the chip added to the Lightning cables.

Will the switch to Type-C hurt Apple’s revenue?

There is speculation that Apple’s cash flow will be affected after committing to the Lightning port. But some reports say the company may develop a certification chip specifically for the USB-C interface that will be used in this year’s iPhone 15 series phones and related MFI accessories.

So it might be possible that the existing Type-C cables might not be recognized by the new iPhones or they might not be able to fast charge them.

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