16gb vs 64gb iPhones - cost and profit for Apple

Discussion in 'iPhone' started by e93to, Mar 28, 2016.

  1. e93to macrumors 6502a

    e93to

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    #1
    Not sure if this has been posted or discussed before - http://bgr.com/2016/03/28/iphone-7-storage-32gb-64gb/

    So... how many posts before this thread is locked...? :p
     
  2. C DM macrumors Westmere

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    Oct 17, 2011
    #2
    Nothing new there, and surely has been well discussed many times before.
     
  3. geoff5093 macrumors 68000

    geoff5093

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    #3
    I remember when Apple used to be the leader, but now they have less starting storage than $300 budget Android phones. Most Android flagships have either 32GB or 64GB starting storage these days.
     
  4. 12vElectronics macrumors 68040

    12vElectronics

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  5. GoSh4rks macrumors 6502

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    #5
    So I guess you'll be ok if the Apple raises the price of the SE/6s/etc by 50% tomorrow..
     
  6. adamhenry macrumors 65816

    adamhenry

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    #6
    Poor straw man but a a straw man nonetheless.
     
  7. 12vElectronics macrumors 68040

    12vElectronics

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    #7
    No I wouldn't care. You want to know why? Because I'm the customer with the money. I have the power to chose to buy or not.
     
  8. 617aircav Suspended

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    Jul 2, 2012
    #8
    For me Apple has dropped prices. My 5s 32gb was $750 and my 6 64gb was $750. A $200 price drop.
     
  9. drjsway macrumors 6502a

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    Jan 8, 2009
    #9
    This is why the SE is so much cheaper than the 5C was. In 2016, they know the majority of users will make the upgrade to 64GB, making the real price $499. But by offering a 16GB, they get to advertise it as $399.

    By holding at 16GB, the average selling price for new iPhones goes up every year. It's quite brilliant actually.
     
  10. C DM macrumors Westmere

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    Oct 17, 2011
    #10
    Especially with the entry level device that they are positioning it as the majority of users will still go for the cheapest price possible and thus 16 GB.
     
  11. Truefan31 macrumors 68040

    Truefan31

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    #11
    Wow a company trying to make money. Shocking!
     
  12. maflynn Moderator

    maflynn

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    #12
    Who cares, I mean they are in business to make a profit, so what if they make more more of a profit in the higher priced item. I see nothing wrong with that.
     
  13. pika2000 macrumors 68030

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    Jun 22, 2007
    #13
    One cannot simply equate margin to the product solely.
    An iPhone is expensive, but I know I can go to any Apple Store in the world to get support.
    A xiaomi phone is cheap, but what I buy is what I get. That's it. If I need support, well, good luck on me.

    If you run a business, you do need big margin so you can expand and keep working on supporting and making new products. Imagine if Apple has near zero margin. How would they afford to have Apple stores, let supporting their products? It explains why you don't see much updates on Android. They can't as their margins are super thin and can only be used for making new products to sell.

    What people should be looking is Samsung. They charge premium for their devices like Apple, but they don't provide support anywhere close to Apple.
     
  14. Max(IT) Suspended

    Max(IT)

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    Italy
    #14
    who cares ?
    Don't get me wrong: I'm not happy about Apple using 16 Gb for the base model, but fortunately I have choices (and I bought the 64 Gb version).
    In my opinion Apple should have changed starting from the iPhone 6, offering a 32/128/256 option.

    I'm positive the iPhone 7 will follow the iPad Pro path: 32 Gb for the base model, with 128 Gb and 256 Gb options available.
     
  15. 617aircav Suspended

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    Jul 2, 2012
    #15
    There is a big business market for 16gb phones. The SE just made buying phones for employees cheaper.
     
  16. Truefan31 macrumors 68040

    Truefan31

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    #16
    That's a good point. The support Apple provides imo sets them apart by a wide margin right now over other oems.
     
  17. wolfedude88 macrumors regular

    wolfedude88

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    #17
    200?

    It would only be a 100, the 64gb 5s was only 849
     
  18. willmtaylor macrumors G3

    willmtaylor

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    #18
    1. Have you ever priced out different trim levels and add-ons for vehicles? There's no way it costs them what they charge, but it's their prerogative, as it's their company and business model. If you don't like it, don't buy it. The same could even be said for restaurants. There's no way a beer/coke/wings/fries cost them that much, but if you want to eat wings and drink beer there, that's what you pay. It's their business. For better and worse, Apple is capitalist, which means we vote with our $$$.

    2. A better question than how Apple gets away with making an extra $88 on upgrades is what other handset makers are doing with their profits? Apple at least gives you an ecosystem, a decent warranty, excellent customer service, store to tryout new gadgets, etc. with its profits. What's Sammy doing?

    @e93to , not sure why you think this thread would be locked, except that your source material is BusinessInsider, which has developed a reputation for having the impartiality of Rush Limbaugh or Mother Jones.
     
  19. geoff5093 macrumors 68000

    geoff5093

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    #19
    I don't follow. You paid $750 before, and you paid $750 now. The price of the mid-storage tier model remained the same.
     
  20. Q-Dog, Mar 29, 2016
    Last edited: Mar 29, 2016

    Q-Dog macrumors 6502

    Q-Dog

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    #20
    If android phones are a better deal for you, you are free to buy one. Apple doesn't owe you anything.
     
  21. geoff5093 macrumors 68000

    geoff5093

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    #21
    You must be quoting the wrong person, because I never said anything of that. I'm saying apple needs to get with the times and start offering base storage that was standard on android in early 2015. They tout 4k recording and live photos yet haven't increased the base storage in several years.
     
  22. KaliPaige macrumors member

    KaliPaige

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    Feb 9, 2016
    #22
    Anybody who buys a 16 GB phone is just asking to have a bad experience with their iPhone. With Live Photos and 4k video recording, anybody who takes even an ordinary amount of photos and videos is going to find themselves quickly having to back their stuff up to a PC... because 5 GB of free iCloud storage is an absolute joke.

    Apple was right to up the baseline of storage to 32 GB on the iPad Pro. We can only hope that they finally catch up to the rest of the world with the iPhone 7 and offer a 32 GB baseline, otherwise it will rightfully be heavily ridiculed.
     
  23. Q-Dog macrumors 6502

    Q-Dog

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    #23
    and if you need more storage, Apple offers that option. Apple doesn't play the specification game.
     
  24. geoff5093 macrumors 68000

    geoff5093

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    #24
    The base model needs to be upgraded, that's my point. People shouldn't be forced to pay more for what should be standard in 2016
     
  25. Q-Dog macrumors 6502

    Q-Dog

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    Sep 9, 2007
    #25
    No one is being "forced" to do anything. Apple doesn't owe you anything. If you need more storage, buy more storage ... either with a larger iPhone or one of the many other devices you mention that have more storage.
     

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