Built In “Kill Switches” Help Apple Inc. (AAPL) In reducing iPhone Theft

iphone 6 and iphone 6 plus

Apple Inc. (NASDAQ:AAPL) has been able to reduce theft of the iPhone drastically just a little over a year after introducing a feature that allows people to disable stolen iPhones remotely. The latest report shows that the number of stolen iPhones has dropped by nearly half in some places. Google Inc (NASDAQ:GOOGL) and Samsung Electronics also have a built-in “kill switch” on their devices to discourage theft. However, Google and Samsung have not provided details about the impact of their kill-switch feature.

50% decline in iPhone thefts in London

Apple Inc. (NASDAQ:AAPL) introduced the kill-switch feature with iOS 7. The move followed years of widespread smartphone theft, especially theft of premier devices such as the iPhone. The latest report on iPhone theft reveals that the number of stolen iPhones dropped by 50% overall. In London, iPhone thefts declined by nearly half according to Mayor Boris Johnson. The Mayor noted that the introduction of the kill-switch on the iPhone has enabled them to eliminate one of the epidemics that affected the British capital a few years ago.

In the U.S., iPhone thefts have declined 40% in San Francisco and 25% in New York since the introduction of the kill-switch feature.

Apple Inc. (NASDAQ:AAPL) is selling more iPhones, having sold more 74.5 million iPhones in the December quarter, during which it also earned more than $18 billion in profit – a world record for a public company.

Product differentiation

In order to make more sales across the board, Apple has been looking for new opportunities to differentiate its products in the crowded market. Implementation of security features such as the kill-switch and two-factor verification are some of the areas Apple has been trying to make its devices more desirable.

Apple needs to differentiate its products more to help it remain competitive in markets such as China where homegrown smartphone vendors are waging a massive price war. Samsung has lost market share in China because domestic companies are able to push out high-end Android phones and sell them at lower prices, thereby undercutting it in the Android market.

Neha Gupta

Neha Gupta has been in the financial space for over six years now. Gupta earned her MBA degree from Symbiosis Centre of Distance Learning in 2009 and her passion for finance led her to pursue Chartered Financial Analyst (CFA) course. She has successfully completed Level II of her CFA. She is a veteran in article writing, which is depicted in her numerous pieces published on SeekingAlpha, Nextiphonenews, InsiderMonkey, MarketWatch, and Techinsider. Her crisp and eloquent writing finds its best place in Researchcows, where emphasis is given on developing rich content for various websites, products, business plans, trainings, and book writing.

You may also like...

Read previous post:
Apple Inc (AAPL)
Apple Inc. (AAPL) Makes iMessage and FaceTime More Secure With Two-Factor Authentication

Apple Inc. (NASDAQ:AAPL) has moved to enhance the security of the accounts of its FaceTime and iMessage users. The company...