Apple (NASDAQ:AAPL) is known for pushing the boundaries of design. In particular, the company can seem obsessed with making products thinner. Sometimes that focus on thin can backfire. In the case of the “butterfly” keyboard mechanism introduced in 2015 for the new MacBook — then added to 2016’s new MacBook Pro — the “thinner is better” mantra backfired. After years of complaints and several class action lawsuits, the company has now admitted to a flawed design by offering a MacBook keyboard service program that covers the affected laptops for four years after purchase.
The announcement had no real impact on AAPL stock. After all, it’s a repair program, not a recall. And more importantly, it doesn’t involve the iPhone.
Apple Announces MacBook Keyboard Service Program
On June 22, Apple announced the keyboard service program for MacBook and MacBook Pro, covering nine different AAPL laptop models released between 2015 and 2017. According to Apple:
“A small percentage of the keyboards in certain MacBook and MacBook Pro models may exhibit one or more of the following behaviors: letters or characters repeat unexpectedly, letters or characters do not appear, key(s) feel ‘sticky’ or do not respond in a consistent manner.”
Apple will repair or replace affected keyboards for up to four years from the date of purchase. In addition, laptop owners who have already paid for a repair or replacement are eligible for a refund from Apple. Given that the cost to replace an affected keyboard reportedly ranges from $350 to $700 (depending on the model), the company could be on the hook for a significant sum by the time all is said and done. Probably not enough to hit AAPL stock, but enough to force the company to rethink the “butterfly” design.
What Led Up to This?
The root cause for the problem that resulted in the MacBook keyboard service program is entirely self-inflicted: Apple’s obsession with making its products thinner. The quest for thin proved problematic for the iPhone 6, which suffered through a “bendgate” controversy in 2014 — and that one did factor into AAPL stock taking a dive.
In 2015, the company introduced an all-new MacBook. And thin was one of it’s key selling points. To make the laptop as thin as possible, AAPL offered just a single USB-C port. The company took flak for that. But what would prove more problematic in the long-term was the use of new “butterfly” keyboard switches. There were complaints that the new keyboard was uncomfortable to type on because the keys lack responsiveness. That grew to include issues with keys failing to register if even a bit of dust got underneath and in the mechanism.
Despite the unpopularity of the new, thin keyboard design, Apple incorporated the “butterfly” keyboard in the 2015 MacBook Pro, albeit with a slightly tweaked design. This was considered a crucial release for the company, with real ramifications for AAPL stock due to the company’s need to win back favor from its increasingly dissatisfied professional Mac user base. Keyboard issues plagued the MacBook and MacBook Pro to the point that Apple had to post a “how-to” for cleaning dust out of the keyboard.
As keyboard complaints grew — and the cost to replace a defective keyboard became known — user complaints and petitions escalated. By the start of June, AAPL was facing three class action lawsuits involving the MacBook and MacBook Pro keyboards.
The MacBook keyboard service program is an admission by the company that the “butterfly” keyboard design has flaws. Fixing the problem for free for affected customers is the right thing to do and should take off the heat. The question is, will the company finally learn from this? Or is it still hell bent on making making its products thinner than ever, even if that means compromises on the user experience?
As of this writing, Brad Moon did not hold a position in any of the aforementioned securities.
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