I did read it. Some of it made sense but not all of it.
So the article is saying Apple is doing good business while the same time increasing storage at each price point. What seems to be the problem then?
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4K Videos on a 16GB 6s ? Design Flaw or Deliberate ?
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I did read it. Some of it made sense but not all of it.
So the article is saying Apple is doing good business while the same time increasing storage at each price point. What seems to be the problem then?
So defending the company that has the highest rating in customer service is now considered bickering? Wow. The iPhone has a 99% satisifaction rating. If 16GB was such a big deal that number would be way lower.
Look I don't agree with everything Apple does but this 16GB thing is blown way out of proportion.
You need to calm down buddy. You are getting way too worked up over a apple forum. And you come off like a fanboy. Multiple people have posted in here that they have blocked you. Tone it down.
You don't see how 64/128GB buyers would feel like they are getting the shaft if they are getting less incremental GB for the $100/$200 premium they pay?
Honestly I don't think they would care. If I purchase a 64 gb I wouldn't care what anyone else purchases but that's just me.
But did they feel that way when the 32gB was 100$ more than the 16 GB?
The problem is you are arguing this from the approach that Apple is doing this for the good of the user. That Apple believes this is an adequate amount of space. Your whole argument is to show how users can turn off this or that to make a 16GB phone work. And all you are doing is making excuses for a multii-billion dollar business for whatever reason.
Apple is making a very good business decision. They are making tons of money off this. It does not benefit the end user but it is all part of the long term plan. And this should be your one and only argument. Some will call it greedy, and you have to shrug this off if you hold that this is a good business decision. Making money is good for a company, but it takes balance. And while there is bitching now, you know Apple will up the storage next year for the same price and everyone will shut up. That is all you have to stay. No tangents, no skits, no opinions.
Now I don't see eye to eye with you defending Apple's profits and business practices like this. I personally think they would look better if they just upped the storage now and lost some cash in trade for customer satisfaction. But this is the stance you to want to take. So stick with it and do it with some actual evidence.
I had a 32GB iPhone 5s and then bought a 6+ with 64GB.
I'd feel shafted if I needed to pay $100 for only 32GB for the 6s.
Its simple math.
64-32 = 32
64-16 = 48
I'd feel a little peeved that I'm buying a $900 phone and getting less incremental value than last year.
You are defending Apple over a matter where they are not defendable...
And being me to say that means something...
My evidence is what happenned in late 2012/ early 2013.
Apple was at $700 and flying high.
Then in the next two quarters Apple reported flat profits and then profits went down 5%.
That caused the stock to tank to $385. Thats a drop of 45% in stock price in 6 months.
Why is this significant? Because most of the top employees at Apple are compensated mainly with stock options. If Apple stock tanks big time the employees lose a ton of money. Then Apple begins to lose talent since other companies offer better compensation. Lose talent and you lose innovation and product quality.
Bottom line is Apple needs to keep profits strong to retain talent. Starting the tier at 32GB would cost Apple up to $10 billion in profit. That would be a drop of 20% in profits and would surely devestate the stock.
I can defend it.
My usage of my iPhone allows me to own a 16GB phone. Same with my wife. Same with my sister. Same with my parents.
There are alot of people who can get buy with 16GB phones.
You'd be surprised how many people are perfectly fine with 16GB phones. Many people don't store any music and movies on their phone. They simply stream them. They take photo's but everything gets posted on Facebook/Instagram so they can easily delete the pictures on their phone. And people who live in big cities have constant Wifi all over the place so Cloud makes a ton of sense.
Is 16GB for everyone? No.
Is 16GB fit the majority of the population? Probably not.
But there is still a very large market for it.
Ok good job. Your point is done. To answer the question of this thread for you: 16GB is done deliberately to make more profit. There is not much more you need to say then.
Stop with the "many can get by on 16GB" argument. If you want profits this is NOT want you want people to do. Apple is making more profits from people stepping up to 64GB because 16GB IS inadequate. Not because of the difference on investment on 16GB. You are hurting their profits arguing for 16GB being adequate. If some Apple finance person is reading this thread they don't like you.
Dude, you are speaking with an user that had a 16 Gb 3G, 3GS, 4, 4S, 5 and 5S .... I was fine with everyone of those phones.
Today is 2015 and that's not enough anymore.
Simple like that.
my 6+ is fine with only 16GB.
Cant beleive people think their use case is the same as the entire globe
I still can't figure out how to price a 32GB base model
32/64/128 at $650/$750/$850 - this would punish 64/128GB buyers, giving them less incremental GB for the premium they paid last year.
16/32/64/128 at $650/$700/$750/$850 - this might work. But I'm not sure if Apple wants to have 4 tiers.
32/64/128 at $700/$750/$850 - Not bad. But I still think having a $650 bottom tier works the best.
32/64/128 at $650/$700/$800 - This might work. But I'm not sure how happy Apple would be sacrificing $50 for each of the top 2 tiers.
I can't think of tier pricing that would satisfy all buyers and not hurt Apple's profits significantly.
Overall I think this would work best:
32/64/128 at $700/$750/$850
The only ones that will be hurt are those who only require 16GB. They will be paying an extra $50.
With the end of 2 year contracts and so many $0 down plans I can see Apple raising the price next year to $700 for 32GB. That will mean people will be paying $2 more a month on payment plans.
32/64/128 at $650/$750/$850 - this would punish 64/128GB buyers, giving them less incremental GB for the premium they paid last year.
16/32/64/128 at $650/$700/$750/$850 - this might work. But I'm not sure if Apple wants to have 4 tiers.
32/64/128 at $700/$750/$850 - Not bad. But I still think having a $650 bottom tier works the best.
32/64/128 at $650/$700/$800 - This might work. But I'm not sure how happy Apple would be sacrificing $50 for each of the top 2 tiers.
I can't think of tier pricing that would satisfy all buyers and not hurt Apple's profits significantly.
Overall I think this would work best:
32/64/128 at $700/$750/$850
The only ones that will be hurt are those who only require 16GB. They will be paying an extra $50.
With the end of 2 year contracts and so many $0 down plans I can see Apple raising the price next year to $700 for 32GB. That will mean people will be paying $2 more a month on payment plans.
There's nothing to figure: 32 Gb at the same price of 16 Gb, no matter how much you twist it...
I usually truncate the extreme views and find the truth somewhere between them.
EXTREME VIEW 1: Apple is doing users a favor by providing a cheaper 16gb option
EXTREME VIEW 2: Apple is is screwing over users by forcing them to pay more for acceptable storage
The truth is... 16gb is plenty for some, not nearly enough for others. But let's not beat around the bush: Apple is clearly thinking of their profit margin by keeping the lower tier at 16gb. Sure, it's a bit cheaper for them to make, but what they really want is for most users to upgrade to the higher tiers. The profit margins are much higher on those models.
But that's why Apple captures over 90% of the smartphone profits every year. They know how to run a business that both satisfies most users AND captures the most profit share. It's not going to please those who want to pay the same or lower price for more storage space, but there's clearly an option for everybody.
But going back to the original question from the OP: it's clearly not a design "flaw", and it's clearly deliberate. But given that it's deliberate, does that make it a wrong choice from Apple? I mean, how many potential customers are going to refuse to buy a new iPhone because they made the decision to stick with 16gb as the introductory tier? Perhaps a few, but in the meantime, they'll be increasing the average selling price of the iPhone - which will more than make up for any lost sales.
And let's be honest... people don't buy iPhones because they are a good value. Apple users are willing to pay a premium for a premium product, even if it means an upsell. What other companies would do for that kind of mindshare? Oh let's see... maybe try and copy Apple's business model, or unashamedly copy the products themselves. Samsung has done it. Xiaomi is doing it. Many others try to copy the products but can't capture the profits because the users aren't willing to pay a premium for copies. And that's just the way it is.
EXTREME VIEW 1: Apple is doing users a favor by providing a cheaper 16gb option
EXTREME VIEW 2: Apple is is screwing over users by forcing them to pay more for acceptable storage
The truth is... 16gb is plenty for some, not nearly enough for others. But let's not beat around the bush: Apple is clearly thinking of their profit margin by keeping the lower tier at 16gb. Sure, it's a bit cheaper for them to make, but what they really want is for most users to upgrade to the higher tiers. The profit margins are much higher on those models.
But that's why Apple captures over 90% of the smartphone profits every year. They know how to run a business that both satisfies most users AND captures the most profit share. It's not going to please those who want to pay the same or lower price for more storage space, but there's clearly an option for everybody.
But going back to the original question from the OP: it's clearly not a design "flaw", and it's clearly deliberate. But given that it's deliberate, does that make it a wrong choice from Apple? I mean, how many potential customers are going to refuse to buy a new iPhone because they made the decision to stick with 16gb as the introductory tier? Perhaps a few, but in the meantime, they'll be increasing the average selling price of the iPhone - which will more than make up for any lost sales.
And let's be honest... people don't buy iPhones because they are a good value. Apple users are willing to pay a premium for a premium product, even if it means an upsell. What other companies would do for that kind of mindshare? Oh let's see... maybe try and copy Apple's business model, or unashamedly copy the products themselves. Samsung has done it. Xiaomi is doing it. Many others try to copy the products but can't capture the profits because the users aren't willing to pay a premium for copies. And that's just the way it is.
excellent post.
I think you summed up everything.
Apple is neither greedy or charitable with their pricing.
ffs. I am pretty sure Warrior2000 was born in 2000. Being 15 is the only excuse for this behavior.
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I think next year with iPhone7:
32GB $700
64GB $750
128GB $850
$50 raise in price is no big deal since most plans are zero down and no subsidies.
The trend is for lease payments which make the $50 hike disappear in the fine print.
Satisfaction in apple's eyes is achieved if someone votes at least "somewhat satisfied" so don't be surprised if results are that high.
The apple watch for example would have had 65ish % instead of 97% satisfaction if the "somewhat satisfied" votes weren't included.
Are you new to Apple? because besides last year, each model was exactly double the previous model such as 8GB > 16GB > 32GB or 16GB > 32GB > 64GB. If Apple raised the base to 32GB most people would be happy that Apple finally got the base model to catch up with the rest of the models that had increased storage last year.
If someone pays $750 for a 64GB phone, they can't complain that it costs them $750GB for the same 64GB next year, regardless if the base model doubles. You buy 64GB because you need ~64GB of storage. If you can get by with 32GB then many people can actually get a $100 cheaper phone the next time.
It's funny, you are saying you'd be upset as a 64GB buyer, but what about the base model buyers who paid the same $650 last year even though those who paid $750/$850 had their storage doubled? The base model buyers have a right to be upset as they were shafted compared to the other two models.
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