That Sleekly Designed New Gadget Has One Flaw: It Can't be Fixed

iphone coverWhen buying new laptops, cellphones, and other tech devices, it's all about the latest and greatest -- bigger screens, lighter and sleeker designs, more bells and whistles.

But recent reports suggest that these design innovations aren't necessarily an improvement -- in fact, they may even sacrifice product durability, serviceability, and overall life span. Here's how.

Reduced Durability

According to one study conducted by SquareTrade, Americans have spent about $5.9 billion on iPhone repairs since Apple (AAPL) first created the device in 2007. The repairs are mostly due to damages resulting from dropping the phones on the ground or liquid-related mishaps.

How does the iPhone's design contribute to these woes? SquareTrade's Chief Marketing Officer Ty Shay argues that the phone's stylish, easily crackable glass case undermines its durability when people drop it.

Reduced Serviceability

Kyle Wiens, CEO of iFixit, noted in a column in Wired that new generations of Apple computers are designed in ways that make them more and more difficult -- and expensive -- to repair. He called Apple's new Retina MacBook Pro the "least repairable" laptop he's ever examined due to features like these:

  • The Retina's glass and display are fused together, which means that if users want to replace the LCD, they also have to replace the expensive display assembly.
  • Its RAM is fused to the logic board, which means consumers have to replace the (expensive) logic board if they wish to upgrade their RAM. Why would users want to upgrade their RAM? Because newer computer applications require more memory and exact greater demands on RAM. Without RAM upgrades, older computers may not be able to perform well with newer applications.
  • Its battery and case are glued together, so customers can't replace the battery themselves. They instead have to send their computers to Apple for a battery replacement.

Such designs make Apple phones and computers stylishly attractive and lightweight. But when all is said and done, these manufacturing changes create a situation where simply buying a new laptop makes more sense than fixing or upgrading the computer they've got.

Bad Repairability = Good Business

When something breaks, the math is pretty straightforward: Weigh the cost of the repair against the existing value of the machine versus the cost of buying a new machine. Computer companies are making that decision even easier. By designing computers so repairs are expensive, they create incentives to skip the repairs and simply move on to their newer models.

In addition to manufacturing changes, computer companies are reducing the length of the warranties covering their products. As Consumer Reports observed last year, most warranties offer one-year coverage for parts, and a mere 90-day warranty for labor. Skimpy warranties encourage consumers to buy the next great product rather than repair their existing one.

In addition to weighing cost, we also consider convenience. If our batteries go bad, can we really afford to abandon access for several days as we mail our laptops in and wait for the company to replace the part? If our computers are already a couple of years old, many of us would simply opt to buy a new one.

The same principle applies to cellphones. Consider the cost of replacing a cracked iPhone screen, which can range between $100 and $150. When you can buy a new, subsidized iPhone for $200, there is little incentive to fix your old phone.

So What?

In an editorial responding to Wiens' concerns about the Retina's repairability, Garrett Murray, founder and creative director of tech consultancy Karbon, points out that the manufacturing changes that allow companies to create thin, lightweight computers with sleek designs is called "progress." He says, "People don't want huge, heavy 'robust and rugged' laptops. They want ultra-thin, ultra-light, insanely fast computers that are affordable."

Also, consumers who like to own cutting-edge gizmos aren't likely to be concerned about making their computers last, since they'll want to buy a new computer before their old one wears out anyway.

Even so, there are other consequences to choosing stylish designs and frequent upgrades over durable technological devices. Most electronics aren't recycled. Of those that are, some materials are still thrown away, forcing us to pile these up in already-overflowing landfills and dig more resources out of the ground in order to manufacture new devices.

Do you think the trade-off between stylish design and reduced durability is worth it? Let me know in the comments box below.

5 Ways That the iPhone 5 Will Change the World
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That Sleekly Designed New Gadget Has One Flaw: It Can't be Fixed

Every iPhone incarnation is naturally better than the one that precedes it, but the iPhone 5 represents the first time that Apple has increased the screen size. Going from 3.5 inches to four is a bigger jump than it seems.

Then you get to the speedy A6 chip, improved camera, and the robust battery life -- 8 hours of talk time and data browsing or 10 hours of WiFi browsing -- and you begin to see that Apple's iPhone 5 wants to replace all of your gadgetry.

Why do you need a video game console, a digital camera, or even a laptop when the mother of all tech Swiss army knives is now in your hand?

One of the problems with Apple's annual updates is that it can't respond as quickly to some industry trends. Rival smarpthones have been available for the growing markets supporting 4G LTE for some time, though it was widely expected that last year's iPhone 4S rollout would've been LTE compatible.

Now Apple is finally aboard the speedy platform.

Lacking 4G LTE -- and the high price of Apple phones in countries that don't subsidize smartphones -- has put Apple at a disadvantage to Google's (GOOG) Android in the past. Industry tracker Gartner reports that Android's global market share has grown from 43% to 64% over the past year, while Apple has held steady in the 18% to 19% range.

Having 4G LTE won't overcome the pricing problem overseas, but it's a good start.

Despite all of the clever and occasionally annoying Apple ads starring celebrities showing off its voice-activated personal assistant, Siri has been little more than a novelty.

Well, Apple is hoping to change that in the iOS 6 update that is part of iPhone 5 and will be available to more recent iPhones next Wednesday.

Ask Siri the score of a particular game and you'll get it -- along with the box score. Ask Siri about dining options and it can work with OpenTable (OPEN) to confirm your reservation. Ask Siri if there are any good movies playing, and up comes Rotten Tomatoes with critic reviews of the latest theatrical releases.

Siri has been largely a cocktail party pastime before. It may be truly useful now.

J.P. Morgan's Michael Feroli put out a research report earlier this week that puts the new phone's release in jaw-dropping perspective.

If Apple is able to sell just 8 million more iPhones next quarter, that would be enough to bump GDP 0.33% higher on an annualized basis. Since J.P. Morgan is targeting just 2% in overall GDP growth this year, we're talking about a rate would account for a sixth of the country's economic improvement (again, on an annualized basis).

Feroli's math is pretty straightforward. Apple generates a little more than $600 off of each iPhone. Don't get caught up in the $199 price that customers are paying. Wireless carriers make up the difference, sending Apple roughly $400 to subsidize buyers willing to stick with them for at least two years. It adds up to $4.8 billion in revenue for Apple, but Feroli backs out an estimate of $200 per phone to account for overseas components. This leads him to a $3.2 billion positive impact on GDP during the upcoming holiday quarter.

It's not just the iPhones. It's not just the hiring boom at hundreds of Apple Stores, where existing employees received pay raises of up to 25% earlier this summer.

Think about the brisk business at AT&T (T), Verizon (VZ), and Sprint Nextel (S). Think about the wireless carriers that circle the globe offering the iPhone 5.

Now let's get shipping. Reports claim that FedEx (FDX) is telling employees of the parcel delivery company to expect a "surge volume" event starting Sep. 21. Gee. That just happens to be the day that the iPhone 5 becomes available.

It's not just Apple cashing in on the new iPhone 5. The world's going cha-ching.


Motley Fool contributor M. Joy Hayes, Ph.D. is the Principal at ethics consulting firm Courageous Ethics. She doesn't own shares of any of the companies mentioned. Follow @JoyofEthics on Twitter. The Motley Fool owns shares of Apple. Motley Fool newsletter services have recommended buying shares of and creating a bull call spread position in Apple.

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