iPhone pricing

[gaanee]

Apple has been offering 3 sizes with 16, 32, and 64GB for $199, 299, and 399. Now, the first jump of $100 gives you 16GB whereas the second jump gives you 32GB. That sounds like Apple wants to drive more customers either to 16 or 64GB even tough the 32GB actually offers the right balance. Just wondering why did the company choose this pricing structure?

 

[CEmajr]

Increases profit margins. They would rather you buy the 32 and 64GB because it doesn't cost $100 for 16GB or 32GB of extra memory to them.

 

[Shrink]

Apple has been offering 3 sizes with 16, 32, and 64GB for $199, 299, and 399. Now, the first jump of $100 gives you 16GB whereas the second jump gives you 32GB. That sounds like Apple wants to drive more customers either to 16 or 64GB even tough the 32GB actually offers the right balance. Just wondering why did the company choose this pricing structure?

Just a guess...but possibly because Apple has determined that the structure maximizes sales and income. Which is the purpose of the company, and it's fiduciary responsibility to the shareholders.

 

[gaanee]

On first look, it looks like going from 16-32-64GB is doubling the size so $100 jump, but then the second jump buys you much more than the first.

 

[C DM]

On first look, it looks like going from 16-32-64GB is doubling the size so $100 jump, but then the second jump buys you much more than the first.

But there are likely less people likely to go to 64 GB than to 32 GB. So demand (along with supply and all that) plays into that.