This whole discussion is centered on the wrong thing. When did apple stop giving a **** about its customers? at 12$ per upgrade they would make 12 million less per 1 million sold. That's chump change for a company valued in the hundreds of billions. So instead of making 80% margin on a 64gb model they make 75%. Is that what we are really talking about here? Apple needs to take their heads out of their ass and realize how much making an extra 5% margin on a phone is worth to them vs customer satisfaction and continuing to lose customers because of their horrible pricing strategy when it comes to capacity upgrades.
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16gb vs 64gb iPhones - cost and profit for Apple
- Thread starter e93to
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Yes, Apple is effectively forcing customers to upgrade to the mid tier model because when customers go to Apple or a carrier and tell them what they want to do on their phone, they are informed that if you take lots of photos or videos you would want the mid tier model. Don't be naive, you know full well that 16gb in 2016 is far more limiting than it was in 2013.
When you buy a $750 iPhone +, it should not be so gimped that after a few game installs and recording your child's concert in 4k, that you'd already be out of storage.
Of course it is, but you're missing the point: 16 GB is still fine for many businesses, schools, grandfathers, moms, etc. Most of my family has a 16GB phone and is perfectly fine with it.
You can argue all day long with every easy way to fill up 16GB, but at the end of the day, Apple still makes them because they still sell. They still sell because they still suffice for many people.
If it doesn't work for you: DON'T. BUY. IT.
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and if you don't take lots of photos or videos, or play lots of games, or do other things that require lots of space that 16GB works just fine.
YOU need more space and Apple offers devices with more space.
Did you know that it doesn't cost oil companies more money to produce higher octane gasoline, but they still charge more money for higher octane gasoline? What right do those those bastards have, trying to make more money off of the poor people who want or need to burn higher octane gasoline in their cars?
Apple offers 16gb iPhones because a lot of people can't afford an iPhone in the first place so they choose the 16gb option to have an iPhone versus the competitor. People have the power by not buying the device and Apple will adjust accordingly but people keep buying the 16gb models.. so Apple will keep selling them.
Every year Apple sells more iPhones than the year before. I think their "horrible pricing strategy" is working out just fine.
So how exactly does making the base iPhone 32gb change that?
So, because apple is successful at marketing it excuses them from keeping the base storage options consistent with other technology?
The base model is for people who don't need a lot of storage or who can't afford anything better, but that doesn't mean those that buy it wouldn't benefit greatly from a 32gb base iphone. Why should apple stick with what it has been using for several years when the cost of flash has gone down dramatically, and the space photos and videos take up keep going up? 5 years ago 16gb was plenty as photos were 8mp, videos were 1080p, apps were in the single and double digits, but now those have effectively doubled or quadrupled in size yet the capacity and price remains the same...
So, you would be OK with it if Apple increased the minumum storage and increased the price? Or do you want Apple to give you more storage without increasing the price?
You mean like increasing the median option from 32GB to 64GB without changing the price point?
The entitlement is strong with this one.
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No idea. I only know why Apple sells 16gb iPhone, I don't know what changes "that" with a 32gb option.
Remember when Apple only made desktop computers? They were almost dead in the water and even needed investment from Bill Gates. Then came the iPhone in 2007 and their fortunes were dramatically turned around and the profits came rolling in. They have quite rightly been making hay while the sun shines.
I saw Jeff Bakalar tweet rather ungraciously after the launch of the iPhone SE, "We have officially run out of ideas for new products". What a **** he is. Does anyone expect Ford to come out with any other product type besides vehicles? Yet he is not alone in this respect. Apple is a business that has known the most dire of times and has no wish to go there again. They make perceived luxury standard products and hence luxury standard profits. They went from desktop computers to redefining mobile phones and now they also make smart watches. They are now rumoured to be developing a car. I can't imagine how much it costs to develop a car from scratch whilst still attempting to maintain the number 1 position in their current product lineup but I'm certain it's not cheap. It would not take long in business years to lose it all if for example they made the car and it wasn't profitable.
It's quite normal and right to criticise industries and companies for making obscene profits, especially when the consumer has limited or no choice and the product is universally accepted as being essential to our normal daily life. Utility and Health industries / companies come to mind. Apple products however to do not fit well in this category. If you need a cheap computer you can buy one from any office supplier outlet, if you need a cheap camera you can buy one, if you need a cheap phone you can pick one up at your local gas station, if you need a cheap watch well you can get one from toys'r'us and if you want a cheap car, heck, buy a Kia. If however you want a quality product with good support then you will have to pay for it. That's the Capitalist way. I read so many Americans rant against communism, socialism, Government intervention etc. and yet when Apple perform admirably as a capitalist entity, those same people want to knock it for not doing more for the people!
As so many have said before, if you don't like the pricing policy, don't buy the product; YOU have a choice and a wide choice at that when it comes to smartphone companies. For what it's worth I also wish Apple didn't rinse me out so much for their products with truly usable storage but they do and I don't care for the alternative offerings of their competitors. I also have choices and I choose to pay for what I want rather than piss and moan about them being good at making profits.
I saw Jeff Bakalar tweet rather ungraciously after the launch of the iPhone SE, "We have officially run out of ideas for new products". What a **** he is. Does anyone expect Ford to come out with any other product type besides vehicles? Yet he is not alone in this respect. Apple is a business that has known the most dire of times and has no wish to go there again. They make perceived luxury standard products and hence luxury standard profits. They went from desktop computers to redefining mobile phones and now they also make smart watches. They are now rumoured to be developing a car. I can't imagine how much it costs to develop a car from scratch whilst still attempting to maintain the number 1 position in their current product lineup but I'm certain it's not cheap. It would not take long in business years to lose it all if for example they made the car and it wasn't profitable.
It's quite normal and right to criticise industries and companies for making obscene profits, especially when the consumer has limited or no choice and the product is universally accepted as being essential to our normal daily life. Utility and Health industries / companies come to mind. Apple products however to do not fit well in this category. If you need a cheap computer you can buy one from any office supplier outlet, if you need a cheap camera you can buy one, if you need a cheap phone you can pick one up at your local gas station, if you need a cheap watch well you can get one from toys'r'us and if you want a cheap car, heck, buy a Kia. If however you want a quality product with good support then you will have to pay for it. That's the Capitalist way. I read so many Americans rant against communism, socialism, Government intervention etc. and yet when Apple perform admirably as a capitalist entity, those same people want to knock it for not doing more for the people!
As so many have said before, if you don't like the pricing policy, don't buy the product; YOU have a choice and a wide choice at that when it comes to smartphone companies. For what it's worth I also wish Apple didn't rinse me out so much for their products with truly usable storage but they do and I don't care for the alternative offerings of their competitors. I also have choices and I choose to pay for what I want rather than piss and moan about them being good at making profits.
You did realize the price of a 16gb chip from 2-3 years ago is now the same price as a 32gb chip. Yet apple has continued to charge the same amount for its iphone. By your theory apple should be lowering the price of the 16gb model since the chip has gotten cheaper over over the years. What now?
So what. What's the difference between a $20 timberland plastic sunglasses and a $250 Prada plastic sunglasses? The price. Bottom companies will charge what their market can bare.
Increase the base storage without increasing the cost. You know, how they increase the ram, processing speed, resolution, screen size, WiFi speeds, battery capacity, or how they doubled the middle and high tier without changing the price.
Would you be happy if Apple kept the 4gb base that they introduced wth the first iPhone? It needs to be upgraded
