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Then maybe we agree. I'd rather have the 64GB but to me it's not worth it. I think it's too much and not providing me, personally, with enough value to warrant two more big bills from my wallet.

It would be nice to see the 32GB become the base model, it's been long enough. If that happens I can see it being enough. 64Gb would be great yet like you say, it would be hard to justify the extra two hundred dollars.

Where I think we differ--and where you seem to be encountering some opposition by more than one person here--is factoring in any supposed component cost and calling it greed for Apple to charge $100/$200 more. The component cost is irrelevant really.

Hard to think of it as being irrelevant. They are using memory as an excuse for insane margins.
 
You don't know what your talking about. The iPhone 5S 16GBb costs Apple about $450 per phone. You're skipping R/D, software development, labor, shipping, packaging, design, etc, etc.

I don't think you read his post properly. He is referring the the extra $200 charged for the step up from 16GB to 64GB yet it only costs Apple $19.
 
Complaints about Apple ripping the customers based on this BOM are misplaced in that BOM obviously does not cover the whole cost of design, manufacturing, marketing and selling the phone. However, iPhone is still is a rip-off because its BOM is lower than that of their rivals. iPhone remains the cheapest smart phone among high end smart phones. For comparison, BOM for Samsung Galaxy S4 is $236. Obviously Apple achieves this by skimping on NFC, wireless charging, RAM, battery size, screen size, screen technology etc.
 
Exactly. This is clearly where they make the bulk of their profits... Unfortunately

So you're against Apple making a profit?

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Complaints about Apple ripping the customers based on this BOM are misplaced in that BOM obviously does not cover the whole cost of design, manufacturing, marketing and selling the phone. However, iPhone is still is a rip-off because its BOM is lower than that of their rivals. iPhone remains the cheapest smart phone among high end smart phones. For comparison, BOM for Samsung Galaxy S4 is $236. Obviously Apple achieves this by skimping on NFC, wireless charging, RAM, battery size, screen size, screen technology etc.

If Samsung could increase their profit margin to Apple's level, you don't think they'd do it in a heartbeat? Obviously Apple is more successful in bringing value to the market that isn't strictly based on raw components. I mean, how hard would it be to match Samsung's BOM?

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They are using memory as an excuse for insane margins.

That doesn't even make sense.
 
So, it costs apple $19 to go from 16 to 64 gig and they charge the sucker....er customer $200 for it. There is just no way in 2013 they should be offering the tiny storage sizes they do at the high prices they do.
 
If Samsung could increase their profit margin to Apple's level, you don't think they'd do it in a heartbeat? Obviously Apple is more successful in bringing value to the market that isn't strictly based on raw components. I mean, how hard would it be to match Samsung's BOM?

That was not my point. I really do not care about the motivation of the companies. As a consumer I just want the best product and the best deal. Judging by BOMs iPhone is neither. It's just a mid-range phone (some of its parts are quite good though).
 
That was not my point. I really do not care about the motivation of the companies. As a consumer I just want the best product and the best deal. Judging by BOMs iPhone is neither. It's just a mid-range phone (some of its parts are quite good though).

Based on calling the iPhone a rip-off, maybe you could do a little better job illustrating your point...It seems like you're going strictly off of BOM.
 
I fail to understand why any of this is important. If you've owned Apple products for awhile you already know that they are priced higher than comparable products by other manufactures...

At the end of the day Apple is going to charge $X for a Mac or iOS device, what does it matter how much it cost Apple to put it on the shelf? If you want to own it for that price, you'll buy it - if you don't think the value is there, you won't....

All the bitching here is insane. This isn't rocket science. The fact that 9 million phones sold in 3 days confirms that Apple has the right price, otherwise they wouldn't have sold.
 
For some reason Apple's profit margin isn't what bugs me, it's the 99p silicone case being sold for £20.

If it bugs you there's an easy solution --> just don't buy that silicone case! (I wouldn't.)

Just buy a different case from a 3rd party manufacturer...

No need to make life more difficult than it already is! :)
 
it really does make sense. They are using memory as the main factor for high increases in price when the part cost does not warrant such margins.

Sorry, but the free market -- not Apple acting alone -- warrants such margins.

People are free to buy a different phone. When people stop iPhones buying because they believe that they're too expensive for what they are, then Apple (or any for-profit company) will adjust accordingly.

It's actually a very simple concept folks.

I mean, how many people go to the grocery store and check how much each product costs to produce, or complain that the margin (for that product) is too high? No one! If whatever product they want to buy is reasonably priced (to them) then it goes in the shopping basket. If not, the shopper moves on!

Or... How much, in terms of water, coffee beans, and paper do you think is in a cup of Starbucks cafe latte? (I'm talking raw materials here) $0.03? Yet how many go online and post how outrageous it is for Starbucks to charge $3.95 for that beverage???
 
What I don't understand is the $19 cost difference between the 16GB and 64GB, and the $200 price difference. Same R&D, shipping, labor, marketing, etc. costs there.
it's called "Capitalism"

a potato only costs a nickel.
But cut that potato up, deep fry it and roll it in some salt and you can sell "french fries" for $2.

You aren't paying $200 for 48gb of space. You are paying for 48gb of additional space in your phone. I would add that I have never had a phone with an SD card reader that was 100%. Not even 75%. So I do not think that a phone with a microSD slot is better. If anythign it allows you to lose GBs of data by misplacing a fingernail clipping sized piece of plastic.

I'd also point out that in the last few years all the major carriers have killed unlimited data plans. I'll lose mine when I upgrade to the 5S. So having large local storage is actaully a cost savings. Think of it as "fuel efficient". It will be able to store more in the phone, and rely less on icloud, the cloud or brown cloud.
 
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You're right but...

No one ripped you off. Don't like it, don't buy. Pretty simple.

When there is no cheap SD card expansion, we are stuck with the official memory price upgrade.

The worst model is the 32G. To pay another $100 for effectively an extra 16G is a major ripoff.

Apple should (I know, how many times does that quote get overused here??? LOL), ditch the 32G version and price the 64G at the current 32G price. That would be fairer to customers who think longterm they want the freedom of the extra storage and give us a price break on the non-user-expandable memory.

These memory upgrade prices have been maintained way too long. The real world memory price has dropped dramatically over the years with retail 64G flash drives under $50.
 
Sorry, but the free market -- not Apple acting alone -- warrants such margins.

People are free to buy a different phone. When people stop iPhones buying because they believe that they're too expensive for what they are, then Apple (or any for-profit company) will adjust accordingly.

It's actually a very simple concept folks.

I mean, how many people go to the grocery store and check how much each product costs to produce, or complain that the margin (for that product) is too high? No one! If whatever product they want to buy is reasonably priced (to them) then it goes in the shopping basket. If not, the shopper moves on!

Or... How much, in terms of water, coffee beans, and paper do you think is in a cup of Starbucks cafe latte? (I'm talking raw materials here) $0.03? Yet how many go online and post how outrageous it is for Starbucks to charge $3.95 for that beverage???

As a consumer, I would prefer to pay less than whatever Apple (or any other manufacturer) sets their retail price. Even if Apple set the price for of the iPhone for $1, my preference would be for the device to be free. If it were free, I would prefer to be paid to use the iPhone.

Having said that, I understand why the iPhone or most other consumer goods are not free. I understand why they are priced so that everyone in the chain makes a profit (vendor, distributor, retailer, etc.).

There are some people that, for whatever reason, can not see beyond their own self interest and pass judgement based with only that self interest as a guide. You can spell out in detail to them how commerce works. Yet they choose not to listen for as long as the facts don't support their self interest.
 
When there is no cheap SD card expansion, we are stuck with the official memory price upgrade.

The worst model is the 32G. To pay another $100 for effectively an extra 16G is a major ripoff.

Apple should (I know, how many times does that quote get overused here??? LOL), ditch the 32G version and price the 64G at the current 32G price. That would be fairer to customers who think longterm they want the freedom of the extra storage and give us a price break on the non-user-expandable memory.

These memory upgrade prices have been maintained way too long. The real world memory price has dropped dramatically over the years with retail 64G flash drives under $50.

An iPhone is not shelter, food or water.

You pay for it because you want to, not because you need to.

You can always refuse to pay what Apple demands. If not, and you choose to pay, you're not being ripped off. Rather, you're a compulsive consumer with no self control that engages in purchases you openly believe are not in your interest.
 
When there is no cheap SD card expansion, we are stuck with the official memory price upgrade.

Is someone holding a gun to your head leaving iPhones as your only choice of cell phones?

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An iPhone is not shelter, food or water.

You pay for it because you want to, not because you need to.

You can always refuse to pay what Apple demands. If not, and you choose to pay, you're not being ripped off. Rather, you're a compulsive consumer with no self control that engages in purchases you openly believe are not in your interest.

And not accepting responsibility for his own actions.
 
Once again, the component cost is irrelevant.

I don't feel it is regardless of what any company may say.

Sorry, but the free market -- not Apple acting alone -- warrants such margins.

I know, just not a fan of this concept depending on the item.

People are free to buy a different phone. When people stop iPhones buying because they believe that they're too expensive for what they are, then Apple (or any for-profit company) will adjust accordingly.

I agree that there are options, used, (off contact) another brand etc.. even super cheap phones if that is all one can afford. (Super cheap as in tracfone)

I mean, how many people go to the grocery store and check how much each product costs to produce, or complain that the margin (for that product) is too high? No one!

No one? There are tons of products that are too costly, not always overpriced though. Cannot afford and overpriced are quite different.

If whatever product they want to buy is reasonably priced (to them) then it goes in the shopping basket. If not, the shopper moves on!

If there is anything to move on to.

Or... How much, in terms of water, coffee beans, and paper do you think is in a cup of Starbucks cafe latte? (I'm talking raw materials here) $0.03? Yet how many go online and post how outrageous it is for Starbucks to charge $3.95 for that beverage???

I have always thought Starbucks is too expensive, make my coffee at home.

it's called "Capitalism"

Which is can be good yet troublesome long term, everyone being obsessed with growth which cannot be maintained forever.

a potato only costs a nickel.
But cut that potato up, deep fry it and roll it in some salt and you can sell "french fries" for $2.

And that's why I never buy fries and have water. I can get a bag of potatoes or a bag of frozen fries for much less.

You aren't paying $200 for 48gb of space. You are paying for 48gb of additional space in your phone. I would add that I have never had a phone with an SD card reader that was 100%. Not even 75%. So I do not think that a phone with a microSD slot is better. If anythign it allows you to lose GBs of data by misplacing a fingernail clipping sized piece of plastic.

I have heard that SD cards in phones may not be as stable nor as fast. Never worried about losing stuff, just never happens.

An iPhone is not shelter, food or water.

You pay for it because you want to, not because you need to.

You can always refuse to pay what Apple demands. If not, and you choose to pay, you're not being ripped off. Rather, you're a compulsive consumer with no self control that engages in purchases you openly believe are not in your interest.

The memory is overpriced yet not sure how ripped off someone is if they purchase it knowing that. Knowing ripped off? Yet if someone pays it it tells Apple it was worth the price.

Is someone holding a gun to your head leaving iPhones as your only choice of cell phones?

I think someone can be saying they want an iPhone yet with better options. Kind of how someone can say they want a Macbook with blu-ray. The point being they want to buy a Mac and would if they released a version with an option they wanted.
 
Ouch, only a £11.87 difference between 16 and 64GB but a £160 difference at retail...

I'm sorry but people can bitch about how it's just the market and that you don't need to buy it if you don't need it, but that's pretty ridiculous. It's like Apple set the price for the base model then their accountants pick numbers out of their head that sound pretty for the others.

It's not even just Apple, every manufacturer is guilty of this tiered pricing system for storage, little of it makes sense.
 
These articles never take into thought of R & D costs, shipping costs, and labor costs. So now we will have 30 pages of apple is ripping people off posts

It's always worth mentioning. Apple does not profit $451 per device.

The component cost is only a fraction considering R&D Engineer/HR/Legal/etc hourly wages during development time at CA wages and development tools and resources, and on and on and on.

But spread out over 100+ million phones, how much do you think the R&D adds to the cost of each phone?
 
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I still take issue with the storage options. 16GB should not exist in 2013 and the margins are too high from 16GB to 32GB and 32GB to 64GB while 64GB to 128GB does not feel too ridiculous.



Many companies are greedy. Profit is fine greed is not.

Greed defined as "They are charging more than I want to pay"?
 
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