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Which users?

I read a report recently from a developer that said only 17% of 16Gb users had less than 1Gb free. Or to spin that around 83% have more than 1Gb free. Most users on 16GB are the mom and pop time users, the corporate users, the elderly, the tech phobics. They use their devices in a basic manner, they don't shoot video, they don't download 1GB games. The majority (looking at available data) are just dandy with their 16GB.

Let's face it most people here want 32GB base as it will save them money, not because it's a smart business decision from Apple.


This bit of the article also made me chuckle:



I like the use of "irrelevant". $17 more for 16GB -> 64GB. Apple sells ~200 million devices a year. ~50% of which are the bottom storage tier, that's a $1.7 billion decision. Hardly irrelevant.

Most of these analysts would run a well a well oiled machine like Apple into the ground within a few years, as would the majority of forum members.

Last thing we want is a situation like Android manufacturers for Apple, where they make no money. That's when the users will start getting screwed.

Selfishly I would love a 64GB base model, but I can also see why it exists.

I don't know of any flagship phone that still starts at 16 GB of flash storage. Apple losing 1.7 billion per year is like a a middle class citizen losing pocket change.
 
Thanks very logical article...if someone bought 64 now - Apple is hoping you come close to filling up so when iPhone 7 rolls in - you will feel the need to keep the same storage.

Bingo!! Again, the only question is that in the 7, when Apple introduces they 32GB base, do they double the other tiers or not? My guess is that they will not. And most people will continue to pay the extra hundred for the 64gb because that is what they are comfortable with.
 
I don't know of any flagship phone that still starts at 16 GB of flash storage. Apple losing 1.7 billion per year is like a a middle class citizen losing pocket change.

Well the Nexus 5X just came out yesterday and it is 16GB. Although it could for sure be argued the 6P is the flagship there (which starts at 32GB).
 
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this kind of analysis are utterly ridiculous : they don't really know how much some components cost and they don't even take in account very important costs like software, development, distribution and after sale support...
this kind of articles are just click baits, fuel for haters.
 
32GB should be at the base.
that's true. It's ridiculous to sell an iphone 6S 16 Gb in late 2015 ....
[Queue posts about how this doesn't account for extensive R&D costs]
not only that ... a lot of costs aren't taken in account by this analysis.
These costs doesn't include the price and effort put in to developing the actual components. Without that work, there wouldn't be any components in the first place.
they don't have any idea on how much A9, for example, really cost at Apple ...
The prices have to be jacked up to cover all the returns of the fans who return 6-8 phones looking for the perfect one!!
that was a joke, but sadly it's partially true....
Those numbers seem right.
As Tim Cook said:I've never seen one that is anywhere close to being accurate
 
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I am currently in the market to replace my Iphone 5. If Apple would have put a BIGGER battery in it I would have bought a 64gb one by now. Yes, Iphones are a premium price. I would pony up the $$$ for a bigger battery. I am considering the Nexus 5x or the upcoming Droid from Verizon.

The Nexus 5x starts at 16GB and tops out at 32GB. Its battery life will last "all day", which is exactly what the iPhone 6 and 6s do (it is very unlikely that the 5x will have better battery life than the iPhone 6s). I like Nexus phones (I had the 4, which was a great phone [subpar battery and camera though]) and Android but I'd take an iPhone 6 (or 6s) any day over any Nexus phone, now that I've switched to iPhones. I prefer the experience with Apple over that of anything I've tried on the Android side.

The Droid will have better battery life but it's a Verizon exclusive, which doesn't work for those without Verizon. It also comes down primarily to ecosystem preference.
 
Here I go. Let me explain high volume low throughput manufacturing. Despite Apple marketing themselves as a company producing premium products, they are just like any other high volume low throughput company if you want to analyze their cost and revenue. That's why you only need to look at BOM costs because they will dwarf any other costs. R&D which Apple doesn't even spend a lot of money on is a sunk cost that doesn't need to looked at. So yes, looking at the material cost tells you that Apple enjoys a very high margin, and there is no excuse for their them scrimpping on memory and storage space. I know this is an Apple site, but its ridiculous to defend them against your own interests when the facts are right in front of your face.
 
I don't know if iSuppli realizes that instead of the regular NAND used in previous iPhones, Apple went further than even Samsung's UFS 2.0 and, according to Anandtech's preview of the 6s, is now instead using NVMe and PCIe (essentially the same as the 2015 MacBook):

"To my knowledge, there’s no publicly available mobile storage solution that uses PCI-E and NVMe, so this controller seems to have more in common with the Macbook SSD controller than anything in the mobile space. It doesn’t seem this is an uncommon idea though, as SanDisk detailed the potential advantages of PCIE and NVMe in mobile storage at the Flash Memory Summit a month ago."
 
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Can't believe those cheap bastards have the nerve to sell them at more than $236

That's right! In fact, Apple has so much cash, they should pay me $236 to take their phone, and throw in a Tesla Model S or Ferrari or two as well. My garage has room. Why be a cheapskate when asking for a better deal? Who cares about all the old retired shareholders who depend on their AAPL dividends to eat. Let them eat cake! :p :p
 
Speaking as an accountant, these non-cash flow expenses can be significant and are often ignored since R&D is expensed and not capitalized as part of WIP or FG inventory. While surely Apple is making incredible (almost excessive) margins, it's not as simple as "$800-236 = 564 of rip off!!!"

How about instead of spouting off on the cost of R&D, realize that Apple also makes billions off of the services you pay for on top of the iPhone. Apple Music and all the iTunes and App's that you pay for. And on top of ALL that, Apple makes money off the ad platforms used by apps and games and wants to take a slice off of every purchase you make through Apple Pay.

It's about time that Apple subsidizes the cost of the phone considering that a phone over the period of one or two years could generate hundreds, if not thousands in additional profit.

Charging 4+ times more than the cost of the phone, on top of hundreds in service charges and fees taken off of purchases after the phone is purchased results in greedy highway robbery, period.

Apple is a greedy spiteful company that treats their customers like idiots because they line up to buy a phone that increases in cost every generation.
 
and where do u get these "off the shelf components from" to get to that price ?

Disk smiths ? u can't just wank into a store and get a tactic feedback component for an iPhone 6s.

That's why i never believe these things...... they come up with all these component costs, but fails to even say how they did it, which store they went to, which makes it more un-true.

Where is the proof ? i need to check this out.
 
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How about instead of spouting off on the cost of R&D, realize that Apple also makes billions off of the services you pay for on top of the iPhone. Apple Music and all the iTunes and App's that you pay for. And on top of ALL that, Apple makes money off the ad platforms used by apps and games and wants to take a slice off of every purchase you make through Apple Pay.

It's about time that Apple subsidizes the cost of the phone considering that a phone over the period of one or two years could generate hundreds, if not thousands in additional profit.

Charging 4+ times more than the cost of the phone, on top of hundreds in service charges and fees taken off of purchases after the phone is purchased results in greedy highway robbery, period.

Apple is a greedy spiteful company that treats their customers like idiots because they line up to buy a phone that increases in cost every generation.

I said that they made huge "almost excessive" margins, but the market pays it so they keep it.
 
Well the Nexus 5X just came out yesterday and it is 16GB. Although it could for sure be argued the 6P is the flagship there (which starts at 32GB).
Nexus 5X - $379 for 16GB and $429 for 32GB, not really flagship on the price, but looks decent for $400 range phone.
 
Nexus 5X - $379 for 16GB and $429 for 32GB, not really flagship on the price, but looks decent for $400 range phone.

Yeah funny that the press is calling it a flagship... but it is more like a budget follow up to a once flagship.
 
I'm very well aware of that, but a GTI is also a 4 banger and it has dual exhausts. It's aesthetically pleasing and BMW knows that, so they use it to their advantage.

If people want a larger size, they can buy a larger size. This is a business and as unfortunate as it is, that's how Apple wants to roll.

Storage is not aesthetically pleasing . Your analogy is based on aesthetics and , well completely wrong . Try engine capacity or fuel tank etc . The 6s 16Gb looks identical to 64 and 128 units.

Greed? They sell it = there is demand.
Would you lower your salary?

how is ones salary relevant to the base model being 16GB?

You missed the point point bud. Would you be happy if you had to do more and your salary stayed the same?
 
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Wouldn't the cost of the components depend on how many Apple are buying? Given the massive quantities involved, the individual phones probably cost Apple a lot less than this. Their real costs are R&D, logistics, marketing, etc.
I think those prices are already reflecting the huge quantities Apple buys. Not so sure you and I could buy such components at those estimated prices.
 
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