Apple's offer to replace flagging batteries at a slashed rate could be a hurdle for iPhone unit sales in 2018 if more users take the deal over upgrading to a new device, Barclays analysts write in a note.

Apple's customers have not been very pleased since the company said last month it intentionally slowed down older iPhones with weakening batteries to prevent the handset from shutting off abruptly.

Following consumer outrage, Apple apologized and slashed the price of out-of-warranty replacement batteries to $29 from $79 for iPhone 6 or later models.

Barclays analyst Mark Moskowitz says 77 percent of iPhone customers are using iPhone 6, 6 Plus, 6s, 6s Plus, 7, 7 Plus, and SE, which means even a small percentage opting for battery replacement over upgrade could have meaningful impact on iPhone sales.

Barclays estimates that there are 519 million iPhones eligible for the $29 battery replacement and predicts that Apple will do swaps on about 10% or 54 million of them. 

While the $29 charge would create about $1.56B in revenue, the company could be giving up around $10B from the potential loss of the estimated 16M iPhone sales. 

The company faces eight lawsuits filed in California, New York and Illinois over the issue.

Last week Apple issued an unprecedented apology following its admission that it slows down older iPhones to save battery life.

Now, it appears the Cupertino-based firm will replace all batteries in the iPhone 6 or later - even if it passes their Genius Bar diagnostic test.

An internal memo states customers should receive a battery for $29 (£25) - even if a diagnostics tests proves it can retain more than 80 per cent of its original capacity.

It comes as the firm faces several lawsuits from customers in states including California, New York and Illinois, as well as customers in Israel and France.  

Source: dailymail