Sealed-in Batteries for Laptop Computers

On June 25th The Wall Street Journal (1) published an article by Walter Mossberg concerning rechargeable batteries that are sealed into laptop computers. Mossberg says that historically, most laptop computers come with removable batteries to facilitate inserting a fresh spare when the battery charge is low and replacing the battery when its lifespan is over. However, Mossberg points out that hardly anybody buys extra batteries.

Apparently, sealed-in batteries increase the market value of laptop computers for the following reasons:

1. Sealed-in batteries allow laptop computer manufacturers to offer more than 30% higher battery capacity than laptops with replaceable batteries that are the same size and weight.
   
2. When coupled with certain software technology, these sealed batteries can last up to five years in typical use, which is considered to be the useable life of a laptop computer.
   
3. Mossberg tested Apple’s 13” and 15” MacBook Pro laptops and found that these two computers scored among the highest battery lives between charges of any laptop that he has ever tested.
   
4. If the sealed-in batteries ever become unable to hold an adequate charge, the entire computer can be returned to an Apple store for a new battery. This is a same-day process and costs no more than a replaceable battery.
   
5. Apple has cut the prices of these two laptops; however, they are still pricey compared with similar-sized models from other companies.

How can one use the Market Value System to quickly assess whether or not sealed-in batteries increase the market value of laptop computers? Rechargeable batteries are one component of laptop computers and battery capacity is but one small performance property. Even if we accept Mossberg’s assessment of Apple’s sealed-in batteries, it would be wise to conclude that this feature will only improve the overall TMP Value of laptops slightly. To assess the unmet market needs of laptop computers, Apple would have to create a TMP Value knowledge block including all of the primary and secondary properties.

Next, Apple would have to create an Economic Value knowledge block to fully understand the cost/performance optimum for laptop computers. The fact that Apple’s laptops are more expense than PC laptops doesn’t necessarily mean that Apple’s laptops have an Economic Value disadvantage.

Finally, the perception of laptop users controls whether or not the laptop market value chain understands and accepts Apple’s TPM Value and Economic Value advantages. This concerns marketing communication and market value chain influence.

The bottom line is that if Apple had a Market Value Laboratory, Apple could create all of the knowledge blocks needed to profitably increase its market share of the laptop computer market value chain. Sealed-in batteries doesn’t do it for me.

1. Walter S Mossberg, Wall Street Journal, June 25, 2009 Page D1