How much does it cost Apple to put in 64gb instead of 16?

Discussion in 'iPhone' started by thermal, Sep 11, 2014.

  1. thermal macrumors regular

    Joined:
    Aug 3, 2009
    Location:
    Vancouver, Canada
    #1
    I'm planning to pay the extra $100 and buy the 64gb version of an iPhone 6. I suspect there are many others like me.

    I'm wondering how much it costs Apple to increase the memory from 16gb to 64gb...
     
  2. lautzki macrumors regular

    Joined:
    May 21, 2014
    #2
    AFAIK it costs around $8 for Apple to add 16GB of extra capacity.
     
  3. eoblaed macrumors 68000

    eoblaed

    Joined:
    Apr 21, 2010
    #3
    You also have to keep in mind storage costs like these do not scale linearly. In other words, if a single 16GB chip costs $8 (I have no idea, just using your number as an example), a single 64GB chip will not cost $32 (4 x $8). As you increase density, the cost goes up in a non-linear fashion.

    That said, I have no idea what the scale is here. Just thought I'd point that out.
     
  4. Rafterman macrumors 68000

    Joined:
    Apr 23, 2010
    #4
    There are two costs. The cost to Apple ($8) and the cost that Apple uses to jam customers ($100).
     
  5. cambookpro macrumors 603

    cambookpro

    Joined:
    Feb 3, 2010
    Location:
    United Kingdom
    #5
    On the iPhone 5s, it cost Apple $9.40 for 16GB NAND flash, and $29.00 for 64GB NAND flash, giving an estimated cost of $19.60 to upgrade from 16 to 64. This may not take into account any price decreases from this year however.

    That leaves them with about a 400% markup on storage sizes this year (it was worse last year with the 32GB model, as that only cost an extra $9, giving almost a 1,000% markup!). Not too shabby from Apple's point of view.
     
  6. Vertigo50 macrumors 65816

    Vertigo50

    Joined:
    Apr 11, 2007
    #6
    People complaining about the jump are really missing the point. They did the 16 to 64GB jump completely on purpose! They're trying to entice customers to pay that extra $100. Now you get 4 times the storage instead of double.

    Those who were going to get 32gb anyway should be extremely happy, but I can't believe I hear so many complaining that they don't really NEED the extra 32 and would rather they just lowered the price. Come on, people, Apple has kept the prices constant for many years now, despite inflation and a lot of other factors, yet they keep giving us more features and now more storage.

    Give me a break.
     
  7. cababah macrumors 68000

    Joined:
    Jun 11, 2009
    Location:
    SF Bay Area, CA
    #7
    Lets not forget that flash storage has become a lot cheaper over the years but Apple's storage pricing tiers have hardly budged. They aren't doing us any favors. Their goal is that of any other company; maximize profit margins. :apple: is just really good at disguising that.
     
  8. Vertigo50 macrumors 65816

    Vertigo50

    Joined:
    Apr 11, 2007
    #8
    Well, we're kind of making the same point. I'm basically saying that keeping the 16 the same but bumping the others is good marketing, and will maximize profit, but it will also make a lot of users happy, except for those who can only afford the base model.

    Personally, I'm thrilled to bump from 32 gb to 64 gb for the same price. I peed a little when they announced that in the keynote. :D
     

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