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Apple doesn't owe us doing 64GB iPhone as standard. Yes, it's annoying, but technically totally doable. If you use everything via Cloud services, it is possible to use 16GB iPhone and barely use any storage.

Also, this is the equivalent of BMW making their 320i with a single exhaust pipe. BMW knows people want dual or quad exhausts, but if you want that, you gotta pay up and get the 335i.

What's incredible about the topic is the minimal change of cost when assembly is factored in. I'd rather pay up and have my iPhone Made in US or somewhere in Europe.

I love cars and I just died a little reading that. BMW knows customers love rowing their own gears so they gave them a switch on the dash to do just that. They also know customers love to hear the engine so they recorded rev-rev sounds that play through the stereo. It's great when companies listen to their customers.
 
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.

Who cares about other flagships. They are all struggling for profits, anything they can do to make their phones seem better they will. The people who are happy with 16GB iPhones are going to see no benefit by getting a 32GB phone.

Apple is a business. Number 1 they need to make money to survive. If 83% of 16GB users have enough free space to go about their day why as a business would you make a decision to drop a billion+ dollars a year? Just because you have money doesn't mean you make daft business decisions. We don't have the data, Apple do - I imagine if 80% of users were struggling for space with 16GB I think we would quickly see a 32GB base.

As I said, the forum thinks selfishly, they want the base to rise as they would save money. They ignore the fact that there are many who are just fine with 16GB. I'm part of that selfish group - I'd love a base 64GB so I could save £80. But I can also see as a business it would be daft to throw money away.
 
Who cares about other flagships. They are all struggling for profits, anything they can do to make their phones seem better they will. The people who are happy with 16GB iPhones are going to see no benefit by getting a 32GB phone.

Apple is a business. Number 1 they need to make money to survive. If 83% of 16GB users have enough free space to go about their day why as a business would you make a decision to drop a billion+ dollars a year? Just because you have money doesn't mean you make daft business decisions. We don't have the data, Apple do - I imagine if 80% of users were struggling for space with 16GB I think we would quickly see a 32GB base.

As I said, the forum thinks selfishly, they want the base to rise as they would save money. They ignore the fact that there are many who are just fine with 16GB. I'm part of that selfish group - I'd love a base 64GB so I could save £80. But I can also see as a business it would be daft to throw money away.

with $200 billion in bank, it is all perspective.

there are other way to look at the $100, may be that $100 could be used to buy another apple product?

last couple of years it is all about iPhone, as a company, i want the customer to be brought over to Mac, iPad and even to some extend Watch.

eventually iPhone sales will be down (same like iPods), Mac or iPad is the one to rescue apple.
 
In all cases, the iPhone certainly remains a product (or the product) the most profitable in the world.




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etui galaxy note 5 galaxy s6 abonnement
 
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Cue the comments ====== Apple is greedy =======

Not necessarily greedy, but an iPhone 6s does cost $20 more than an iPad Air 2 w/ cellular. Might be in Apple's best interest to examine pricing since contract subsidies are on their way out.
 
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Who cares about other flagships. They are all struggling for profits, anything they can do to make their phones seem better they will. The people who are happy with 16GB iPhones are going to see no benefit by getting a 32GB phone.

Apple is a business. Number 1 they need to make money to survive. If 83% of 16GB users have enough free space to go about their day why as a business would you make a decision to drop a billion+ dollars a year? Just because you have money doesn't mean you make daft business decisions. We don't have the data, Apple do - I imagine if 80% of users were struggling for space with 16GB I think we would quickly see a 32GB base.

As I said, the forum thinks selfishly, they want the base to rise as they would save money. They ignore the fact that there are many who are just fine with 16GB. I'm part of that selfish group - I'd love a base 64GB so I could save £80. But I can also see as a business it would be daft to throw money away.
You're comparing the 16GB to the 64Gb which makes sense. It's a worthy upgrade. But try comparing it to other phones.

IPhone 6 with 16GB, 2GB RAM, 720p 4.7" screen, fingerprint sensor, metal body - $650
Nexus 6P with 128GB, 3GB RAM, 1440p 5.7" screen, fingerprint sensor, metal body - $650

Big difference!
 
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You're comparing the 16GB to the 64Gb which makes sense. It's a worthy upgrade. But try comparing it to other phones.

IPhone 6 with 16GB, 2GB RAM, 720p 4.7" screen, fingerprint sensor, metal body - $650
Nexus 6P with 128GB, 3GB RAM, 1440p 5.7" screen, fingerprint sensor, metal body - $650

Big difference!

You focus on specs, for me it's the entire philosophy and ecosystem that I get value out of...

- Apple Stores (free repairs and replacements, diagnostics, tutorials/lessons etc.)
- Desktop < -> Mobile <-> Tablet <-> Watch <-> TV cohesion. Yes I've played with apps that let you sync across Android and Windows. Not even close to what iOS and OS X offers with Continuity and Handoff.
- Privacy (http://www.apple.com/privacy/). One company makes its money off the hardware. The other off its users data. I'm happy to pay more for that, others aren't - options are good.
- iCloud backups. I love the fact I can switch devices and it feels like nothing has changed. Really dislike the Android equivalents: http://m.pocketnow.com/2015/05/16/android-backups-vs-icloud

I could on on, but you get the idea.

I don't really care what's under the hood. I want it to work well and last a long time -> http://www.anandtech.com/show/9662/iphone-6s-and-iphone-6s-plus-preliminary-results. Seems as though the iPhones run pretty damn well compared to the competition and should last a long time.

My parents still use an iPad 2. Happily. Here's a list of the best tablets of 2011, how many of these would my parents still be using towards the end of 2015 if I didn't buy them the iPad 2: http://www.techrepublic.com/blog/tech-sanity-check/the-10-best-tablets-of-2011-updated/. Safe to say, none. How many run the latest version of Android? None? My parents iPad bought in 2011 runs iOS 9.0.2 released yesterday.

I grew out of comparing specs on computers years ago. I'd rather look at the experience. And Apple is pretty much unrivalled for my use case. YMMV.
 
You focus on specs, for me it's the entire philosophy and ecosystem that I get value out of...

- Apple Stores (free repairs and replacements, diagnostics, tutorials/lessons etc.)
- Desktop < -> Mobile <-> Tablet <-> Watch <-> TV cohesion. Yes I've played with apps that let you sync across Android and Windows. Not even close to what iOS and OS X offers with Continuity and Handoff.
- Privacy (http://www.apple.com/privacy/). One company makes its money off the hardware. The other off its users data. I'm happy to pay more for that, others aren't - options are good.
- iCloud backups. I love the fact I can switch devices and it feels like nothing has changed. Really dislike the Android equivalents: http://m.pocketnow.com/2015/05/16/android-backups-vs-icloud

I could on on, but you get the idea.

I don't really care what's under the hood. I want it to work well and last a long time -> http://www.anandtech.com/show/9662/iphone-6s-and-iphone-6s-plus-preliminary-results. Seems as though the iPhones run pretty damn well compared to the competition and should last a long time.

My parents still use an iPad 2. Happily. Here's a list of the best tablets of 2011, how many of these would my parents still be using towards the end of 2015 if I didn't buy them the iPad 2: http://www.techrepublic.com/blog/tech-sanity-check/the-10-best-tablets-of-2011-updated/. Safe to say, none. How many run the latest version of Android? None? My parents iPad bought in 2011 runs iOS 9.0.2 released yesterday.

I grew out of comparing specs on computers years ago. I'd rather look at the experience. And Apple is pretty much unrivalled for my use case. YMMV.
I would agree that Apple has the best ecosystem and even the best smartphone experience. But what they charge for inferior hardware is unconscionable.
 
I would agree that Apple has the best ecosystem and even the best smartphone experience. But what they charge for inferior hardware is unconscionable.

You must have missed the link: http://www.anandtech.com/show/9662/iphone-6s-and-iphone-6s-plus-preliminary-results

What exactly is inferior? As I said, I worry about how well it works - not the GHz, RAM and megapixels. Just as a Nissan GTR with a smaller engine would run rings around an old American muscle car with a huge 7L engine on a track.

You seem to be confusing the price of an Android handset with what Apple provides - the full experience - support, services, hardware, software. Samsung are trying with stores and Tizen, but they're still figuring it all out. HTC for example make the hardware, they then take the OS from Google (and make some modifications) and then take services from Google too. They don't have to maintain the OS. They don't run the data centres for email, an App Store, the iTunes Store, they don't design their own SoC etc. Massive difference.

Don't forget the extras that are paid for by the cost of the hardware. Where do you think the money to build the Apple Stores comes from? Where does the money to do things like improve factory conditions come from (http://www.apple.com/uk/supplier-responsibility/)?

Also remember Apple makes a tiny drop off ads - they aim to make money off hardware. They don't do what Google does and charge peanuts for the hardware then make their money off their users data. No right or wrong, just different business models.

Finally. It is a business. Every year they are selling more and more handsets. Every year they are supply constrained. If you were running the business why would you lower prices? You'd have even more demand that you can't meet plus lower revenue and profits. Sounds like a crazy thing to do.
 
Btw, per Apple's last quarterly financial statement their gross margin was just under 40% and profit margin was 21.5%. For comparison, Microsoft's gross margin was 66.8% and their profit margin was 13%, but that includes the $10B write down of Nokia/restructuring costs. Add that $10B back and Microsoft's profit margin for FY2015 was 23.7%. Google's gross margin last quarter was 38.3% and their profit margin was 21%. Just a little context for those who think Apple's margins/profits are obscene.

Can you explain in layman' terms the difference between gross margins and profit margins?
 
You must have missed the link: http://www.anandtech.com/show/9662/iphone-6s-and-iphone-6s-plus-preliminary-results

What exactly is inferior? As I said, I worry about how well it works - not the GHz, RAM and megapixels. Just as a Nissan GTR with a smaller engine would run rings around an old American muscle car with a huge 7L engine on a track.

You seem to be confusing the price of an Android handset with what Apple provides - the full experience - support, services, hardware, software. Samsung are trying with stores and Tizen, but they're still figuring it all out. HTC for example make the hardware, they then take the OS from Google (and make some modifications) and then take services from Google too. They don't have to maintain the OS. They don't run the data centres for email, an App Store, the iTunes Store, they don't design their own SoC etc. Massive difference.

Don't forget the extras that are paid for by the cost of the hardware. Where do you think the money to build the Apple Stores comes from? Where does the money to do things like improve factory conditions come from (http://www.apple.com/uk/supplier-responsibility/)?

Also remember Apple makes a tiny drop off ads - they aim to make money off hardware. They don't do what Google does and charge peanuts for the hardware then make their money off their users data. No right or wrong, just different business models.

Finally. It is a business. Every year they are selling more and more handsets. Every year they are supply constrained. If you were running the business why would you lower prices? You'd have even more demand that you can't meet plus lower revenue and profits. Sounds like a crazy thing to do.

I acknowledged that Apple has a better ecosystem and a better smartphone experience overall in my first line.

I'm talking about the hardware itself. And I never mentioned Samsung and HTC. I'm talking about the Nexus phone.

The A9 is a beast but why does Apple charge the same for only 16GB when Google gives you 128GB? I'm sure that has an effect on user experience. How about the 5.7" 1440p AMOLED screen compared to the 4.7" 720p IPS? Doesn't that effect user experience?

ITunes, email, app store? Google has equivalents for all of them.

As far as ad targeting goes, why are you immune if you use an Apple device? Data is being collected by your ISP, what entertainment you watch, what you buy on the Internet, what you search for.

Edit: I'd add that I believe the iPad is a great value and gives the same benefit of the ecosystem. The margins of the iPad are much lower than the iPhone. Why is the iPhone so expensive?
 
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i have macbook pro, ipad mini retina and i am satisfied with these products but to have knowledge of these margins make me feel stupid to buy iphone.. buy iphone must not be rational decesion but emotional decision.. apple results are in essence iphone results.. other products in comparison to iphones have almost zero impacts ... iphone margins are holy grail and i am wonder how many consumers do not realize that there is something fundamentally wrong with iphone prices but i respect decesion of any consumer..
 
I'm talking about the hardware itself. And I never mentioned Samsung and HTC. I'm talking about the Nexus phone.

I covered that:

"Also remember Apple makes a tiny drop off ads - they aim to make money off hardware. They don't do what Google does and charge peanuts for the hardware then make their money off their users data. No right or wrong, just different business models."

There is no way Apple can match Google on price. They are 2 different business models.

When compared to the Nexus line, Apple's extra charge covers the cost of things like Apple Stores, A series chip design, Touch ID etc. - Google doesn't have that huge cost to cover - they partner with others who help with design and build.

The A9 is a beast but why does Apple charge the same for only 16GB when Google gives you 128GB? I'm sure that has an effect on user experience.

Depends on the user. I mentioned in an earlier post:

"If 83% of 16GB users have enough free space to go about their day why as a business would you make a decision to drop a billion+ dollars a year? Just because you have money doesn't mean you make daft business decisions. We don't have the data, Apple do - I imagine if 80% of users were struggling for space with 16GB I think we would quickly see a 32GB base."

The 83% figure comes from 1 developer who has monitored his app users free space. Apple no doubt has way more data.

My work issued 5c is 8GB. For corporate use (emails, calls, caledar, IM and light browsing) it's fine. My personal device is 64GB 6 (I've not been on the base tier since the iPhone 3G or 3GS). My gf has a 16GB 6, no issues. Not everyone installs lots of apps, shoots lots of video etc.

"I'm sure that has an effect on user experience." - data my friend, being sure is no good. You need to have hard numbers to know whether it does affect or not. As I mentioned one data point shows 83% of 16GB users have enough space to go about their day to day.

If you have other hard data I'd be happy to rethink. But at the moment it's always on these tech forums where I see people demanding more than 16GB, we are not the average user though.

How about the 5.7" 1440p AMOLED screen compared to the 4.7" 720p IPS? Doesn't that effect user experience?

For me personally a 5.7" screen would be detrimental to my user experience - way too big. In an ideal world 4.5" would be perfect for me for perfect 1 handed use, but can't have everything - I'll make do with 4.7" on the 6. Perhaps with slimmer bezels on the 7 4.7" will be great for me, time will tell.

In terms of resolution - you tell me would my experience be better? And how?

I've tried all sorts of phones from 250DPI all the way up to 500+DPI. Side by side I can tell a difference. Used in isolation, they all look great. I personally think we're at a ceiling. If the next iPhone gets a higher resolution, great. But it's not going to improve my experience on iOS (happy again to be shown otherwise).

One of my good friends has an S6 - great screen. Used normally I have no preference between screens of the S6 and the iPhone 6. Held up close to my face I prefer the S6 as I can see less pixels. But when do I hold my phone to my face in normal use?

As far as ad targeting goes, why are you immune if you use an Apple device? Data is being collected by your ISP, what entertainment you watch, what you buy on the Internet, what you search for.

Quality of data. My ISP may know what they send down the pipe to my home. But they don't know it's me. It could be my gf, my relatives over for the weekend, my friends, the neighbours - there is nothing tying me to what's being delivered. Google has a link directly to each of their users.

In marketing this kind of quality data is big money. You only have to look at Google's financial results to see that.
 
I covered that:

"Also remember Apple makes a tiny drop off ads - they aim to make money off hardware. They don't do what Google does and charge peanuts for the hardware then make their money off their users data. No right or wrong, just different business models."

There is no way Apple can match Google on price. They are 2 different business models.

When compared to the Nexus line, Apple's extra charge covers the cost of things like Apple Stores, A series chip design, Touch ID etc. - Google doesn't have that huge cost to cover - they partner with others who help with design and build.



Depends on the user. I mentioned in an earlier post:

"If 83% of 16GB users have enough free space to go about their day why as a business would you make a decision to drop a billion+ dollars a year? Just because you have money doesn't mean you make daft business decisions. We don't have the data, Apple do - I imagine if 80% of users were struggling for space with 16GB I think we would quickly see a 32GB base."

The 83% figure comes from 1 developer who has monitored his app users free space. Apple no doubt has way more data.

My work issued 5c is 8GB. For corporate use (emails, calls, caledar, IM and light browsing) it's fine. My personal device is 64GB 6 (I've not been on the base tier since the iPhone 3G or 3GS). My gf has a 16GB 6, no issues. Not everyone installs lots of apps, shoots lots of video etc.

"I'm sure that has an effect on user experience." - data my friend, being sure is no good. You need to have hard numbers to know whether it does affect or not. As I mentioned one data point shows 83% of 16GB users have enough space to go about their day to day.

If you have other hard data I'd be happy to rethink. But at the moment it's always on these tech forums where I see people demanding more than 16GB, we are not the average user though.



For me personally a 5.7" screen would be detrimental to my user experience - way too big. In an ideal world 4.5" would be perfect for me for perfect 1 handed use, but can't have everything - I'll make do with 4.7" on the 6. Perhaps with slimmer bezels on the 7 4.7" will be great for me, time will tell.

In terms of resolution - you tell me would my experience be better? And how?

I've tried all sorts of phones from 250DPI all the way up to 500+DPI. Side by side I can tell a difference. Used in isolation, they all look great. I personally think we're at a ceiling. If the next iPhone gets a higher resolution, great. But it's not going to improve my experience on iOS (happy again to be shown otherwise).

One of my good friends has an S6 - great screen. Used normally I have no preference between screens of the S6 and the iPhone 6. Held up close to my face I prefer the S6 as I can see less pixels. But when do I hold my phone to my face in normal use?



Quality of data. My ISP may know what they send down the pipe to my home. But they don't know it's me. It could be my gf, my relatives over for the weekend, my friends, the neighbours - there is nothing tying me to what's being delivered. Google has a link directly to each of their users.

In marketing this kind of quality data is big money. You only have to look at Google's financial results to see that.
You're saying that most people don't need the 128GB or 5.7" screen on the Nexus 6P compared to the iPhone 6S. Even at the same price. Fair enough.

Google also offers the Nexus 5X with a smaller screen and 16GB of storage for $379. Same size as the iPhone 6 for almost half the cost.

I added that I think the iPad is priced very fairly compared to the competition and offers great value. Of course, the margins are lower. I'll say the same about the Mac.

But why is the iPhone so expensive comparatively even with the same ecosystem?
 
As ever, iSuppli omit the most pertinent details, and focus merely on a sum of parts, forgetting tooling, R&D, custom testing, CNC fixtures etc. They really should have thought of a new reporting strategy by now, wow...

>_<
 
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