Apple made a major switch in its latest gadgets, including the iPhone that accounts for more than 80 per cent of the smartphone industry’s profits. It is one of the most-talked-about thing in the tech world, since Apple earns a substantial revenue from the accessories that third party vendors make for its products. So, how does this change impact the revenue of Apple, one of the most profitable companies in the world.

How Apple earns through Lightning port?

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

When accessory makers build peripherals and cables for iPhones, they need to apply for Apple’s Made for iPhone (MIF) for certification. That certification is mandatory for an accessory to be sold through Apple’s official retail channels.

Since the introduction of Lightning port more than a decade ago, Apple has earned tens of millions of dollars per quarter, 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 last three years.

“During the application process, the product design needs to be modified repeatedly until all the parameters are up to Apple’s standards, which can take three to five months,” The 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 who apply for MFi certification also pay $2,060 per factory audit, according to the Science and Innovation Board Daily.

Additionally, Apple earns from the chip that’s added to the Lightning cables.

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

There are speculations that Apple’s cash inflow will be affected after ditching to Lightning port. But some reports say the company may develop a certification chip specifically for the USB-C interface, which 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 may not be recognised by the new iPhones, or is not able to fast-charge it.

Samsung, one of the leading manufacturers of Android phones, has taken a jibe at Apple for switching to USB Type-C from lightning port in its latest iPhones and Airpods. In a post on X (formerly Twitter), the South Korean tech giant said they can “C” the change that it magical. Apple unveiled its new line-up of iPhone with the Type-C port after a tussle with the European Union (EU). The new port will offer faster charging and data transfer speeds.

At least we can C one change that’s magical

— Samsung Mobile US (@SamsungMobileUS) September 12, 2023

Samsung’s post has been views more than one million times. But internet is divided, with some users praising Apple’s ecosystem and others giving Android ecosystem made by Samsung thumbs up.

“Y’all should give it a rest. Y’all use iPhone to chase clout every year. All these tweets still won’t make us buy samsung products,” commented one user.

“Win win for Samsung. Samsung is Apple’s biggest supplier of components, providing them with a wide range of parts, including displays, memory chips, and processors. This relationship has been going on for many years, and it is mutually beneficial to both companies,” said another. “Not even funny. And iPhone is a way more better btw,” a third user added.

Others, however, enjoyed the ongoing rivalry between two tech giants.

“We C what you did there,” commented one user. “Samsung handler deserves a raise,” said another.

After last year’s event, the Seoul-based company had mocked Apple over its “lack of innovation” even before the launch of the iPhone 14.

In an ad, Samsung showcased some of its high-end features and 120X zoom available in its flagship device. “This innovation is not coming soon to an iPhone near you,” the company had said.

Then in November 2022, Samsung again mocked Apple while reacting to reports that the iPhone maker is working on a foldable phone.

Samsung said in its ad that Apple always makes iPhone users wait for new and useful features.