iPhone Storage is 'Absolutely the Most Profitable iPhone Feature' says Analyst

[MacBergin]

I'm thinking that 10 years ago if you told the original iPhone buyers that we would now be paying over $1400 for a phone they would literally themselves. And does that mean in 10 more years we will be spending $9800 on the iPhone XX?

 

[FFR]

When Apple charges more than the going rate for storage and doesn't include an SD card option, its piss poor.
Perhaps with all the complaints, apple will finally see the light, won't hold my breath though

Your being factually incorrect.
Apple uses nvme storage which is more expensive than the ufs base storage android oems use.

Samsung also sells nvme storage at similar prices to what apple charges they just don’t put it into their phones, because ufs is cheaper affording them higher profit margin. It may look like your getting a deal but sadly with ufs you are not.

I wouldn’t call not offering sd cards piss poor.
Since Samsung fabricates and sells sad card it’s in their best interest, and by best interest I mean it’s actually their business, to include it on their phones.
You don’t also believe the pixel and other android oems not offering sd card support as piss poor do you?



I wouldn’t advise you to hold your breath, I don’t believe it will accomplish anything.

 

[I7guy]

I'm thinking that 10 years ago if you told the original iPhone buyers that we would now be paying over $1400 for a phone they would literally themselves. And does that mean in 10 more years we will be spending $9800 on the iPhone XX?

In 2007 Apple had one phone priced at $500 for 4gb. Today you can buy the xr for $750 or go with the Xs or Xs max. It’s not that you are forced to pay $1400 you can pay $1400 or you can pay $750.

 

[urmaster]

So much confusion in this thread. Doesn’t help that the article mentions storage interfaces like they are at all relevant. This is about the cost of NAND which can be attached to any controller and use any protocol and physical interface a manufacturer wishes - for a given controller of course.

I see there’s no longer any mention of interfaces.

 

[brentsg]

I can't believe this is an article. Going to go look for the water is wet piece.

 

[Damon2]

And yet it baffles me how people can afford a $1k iPhone but cannot afford 99c a month for 50GB iCloud.

And it baffles me how ignorant people can be...
Can we stop assuming people who go for higher tiers do NOT use iCloud, when in reality they do.
Not everyone uses iCloud to try and makeup for lack of local storage.
Some people use icloud for you know...a backup solution.

 

[StyxMaker]

If Apple was interested in serving everyone, why not offer a 128GB option in the XS? They know 64GB is too small these days so most everyone will opt for the much more expensive 256GB and 512GB options. 128GB is still a great size for many people and I predict will be the most popular option in the XR.

I would hazard that the vast majority of iPhone Xs users will be quite happy with the 64GB option. I know I will.

 

[dilbert99]

Your being factually incorrect.
Apple uses nvme storage which is more expensive

Not if you look at the facts in the different prices Apple charges for memory upgrades. It is a well known fact that Apple makes a lot of profit on memory upgrades.

 

[StyxMaker]

That's why iPhone will NEVER offer a micro SD slot. GREED! Screw Innovation right TC.

Please explain how putting a micro SD slot on a smart phone is ‘innovation’?

 

[StyxMaker]

I don’t understand some posts here saying, in essence a) you want premium, you pay premium and/or b) as long as people pay high prices, Apple will not lower them.

As for a), I don’t see how storage constitutes a premium, unlike the OLED for example. It‘s like a car company overcharging not for the fancy rims, but for the steering wheel. Of course people will complain about this and with good reason.

As for b), it’s not like it’s in my power then, is it? Prices won’t drop from me alone not buying something this time around.

It’s more like you can afford the car with a basic steering wheel but you want the car with the fancy steering wheel for the same price.

 

[tks900]

It’s more like you can afford the car with a basic steering wheel but you want the car with the fancy steering wheel for the same price.

I disagree. What I complain about, which I think is also the point of the article, is that Apple makes a particularly high profit margin with the basic stuff, the storage, not the premium stuff. If you want a different example, it’s like charging an extra for bread, not for the cake. No one expects cake to be the same price as bread. But the bread needs to be reasonably priced in itself. Especially when there is only one bakery in town using the good iOS-flour.

 

[bluecoast]

‘Regular’ people (ie those who don’t frequent forums where Apple products are discussed!) will be fine with the entry level storage options & iCloud storage.

iPhone is great at offloading content and apps and ‘regular’ people are going to probably just stream music and tv nowadays plus take pics and video - all of which can be uploaded to iCloud, plus a few apps.

64GB plus iCloud (50-200GB) is fine for that.

Plus AFS and HEVC are amazing at reducing the space required for a few apps and a photo library etc compared to a few years ago.

Apple is making money off people who feel that they have to have all of their apps, photos and video, music and film available at all times (or people using the iPhone for pro uses).

I guess you could call it the Apple Tax but most people just aren’t paying the tax (I would contend).

 

[dilbert99]

Please explain how putting a micro SD slot on a smart phone is ‘innovation’?

Look at the article title, "iphone storage is absolutely the most profitable iphone feature says analyst", then add cloud storage costs. Cloud is not innovation, just inevitable.
Now add the two together and tell me what incentive Apple has for putting an SD card in the iPhone?

Look at how my mum uses the iPad I gave her, she takes video on holiday, it fills up and she needs free wifi for videos to upload. The iPad is constantly full. It would be great if Apple added an SD card slot. That would allow another way for people to get large amounts of files off internal storage. But as you know Apple drags its heals kicking and screaming without adding a file system.

Now a convenient SD card slot would be real innovation, but I won't hold my breath. After all there is only the Apple workflow. No one else is allowed to design workflows.

The illusion of innovation is easy when you control the workflow.
[doublepost=1537950081][/doublepost]

‘Regular’ people (ie those who don’t frequent forums where Apple products are discussed!) will be fine with the entry level storage options & iCloud storage.

That is just your opinion, I know my mums iPad is constantly filling up and causing issues on holiday. The addition of an SD card slot would solve her issues.

 

[FFR]

Not if you look at the facts in the different prices Apple charges for memory upgrades. It is a well known fact that Apple makes a lot of profit on memory upgrades.

The facts like whether the nand is tlc, mlc, or slc.
Or the fact that it is nvme based instead
Of ufc.

 

[FFR]

Look at the article title, "iphone storage is absolutely the most profitable iphone feature says analyst", then add cloud storage costs. Cloud is not innovation, just inevitable.
Now add the two together and tell me what incentive Apple has for putting an SD card in the iPhone?

Look at how my mum uses the iPad I gave her, she takes video on holiday, it fills up and she needs free wifi for videos to upload. The iPad is constantly full. It would be great if Apple added an SD card slot. That would allow another way for people to get large amounts of files off internal storage. But as you know Apple drags its heals kicking and screaming without adding a file system.

Now a convenient SD card slot would be real innovation, but I won't hold my breath. After all there is only the Apple workflow. No one else is allowed to design workflows.

The illusion of innovation is easy when you control the workflow.
[doublepost=1537950081][/doublepost]

That is just your opinion, I know my mums iPad is constantly filling up and causing issues on holiday. The addition of an SD card slot would solve her issues.

And if you read the article it clearly states that there were no price increases between this year and last year, the increase price is only attributed to offering 512gb as the premium tier, twice the storage capacity compared to last years 256gb model.

If you read the article.


And no sd cards are not innovation neither is adding a headphone jack.

Samsung actually fabricates and sells sd cards, that’s not the definition of innovation, it’s their business model.


Perhaps you should have gotten a larger capacity iPad instead.

 

[dilbert99]

The facts like whether the nand is tlc, mlc, or slc.
Or the fact that it is nvme based instead
Of ufc.

Why does that matter? We are talking about the same memory in the same devices as an upgrade, or are you conveniently ignoring the title of this story?
[doublepost=1537963935][/doublepost]

And if you read the article it clearly states that there were no price increases between this year and last year, the increase price is only attributed to offering 512gb as the premium tier, twice the storage capacity compared to last years 256gb model.

If you read the article.

And again you conveniently ignore the title of this story
It is irrelevant how much they charged last year, we are talking about the same device in the same year and how much Apple charges for memory tiers

And no sd cards are not innovation neither is adding a headphone jack.

Samsung actually fabricates and sells sd cards, that’s not the definition of innovation, it’s their business model.


Perhaps you should have gotten a larger capacity iPad instead.

Well one would think that, but that wouldn't be an issue if there was an sd card slot now would it?
I tend to think in terms of what is good for the consumer, you must be a shareholder and only thinking about what is good for your pocket...
[doublepost=1537965886][/doublepost]

offering 512gb as the premium tier, twice the storage capacity compared to last years 256gb model.

Analysts estimate the cost of 256GB memory to be $64.50
Looking at the price increase between 256GB model and 512GB model is $200
So a tidy markup of 210%

 

[FFR]

Why does that matter? We are talking about the same memory in the same devices as an upgrade, or are you conveniently ignoring the title of this story?

I guess you haven’t read the article have you?

You do understand the title represents the article
Or do you just want to debate the title and ignore the article under it.

Slc, mlc,tlc, doesn’t matter, your not making much sense. Each one comes at a different price point.

Do you even know which one apple is using?

It is irrelevant how much they charged last year, we are talking about the same device in the same year and how much Apple charges for memory tiers..

Why is it irrelevant?
Your not making much sense.
Last year 256 gb was the highest tier. This year it’s 512, that’s 256x2. Or did you expect it to be the same price.

The article plainly states that profit comes from the added 512gb tier because price of nand has remained flat compared to last year.

Well one would think that, but that wouldn't be an issue if there was an sd card slot now would it?
I tend to think in terms of what is good for the consumer, you must be a shareholder and only thinking about what is good for your pocket...

No sd cards are crap as a consumer I’m happy with nand and nvme.

If you want cheap Samsung has your back. Sd cards, ufs. Etc. Etc.

Not a shareholder this year, maybe next.

 

[dilbert99]

I guess you haven’t read the article have you?

You do understand the title represents the article
Or do you just want to debate the title and ignore the article under it.

Slc, mlc,tlc, doesn’t matter, your not making much sense. Each one comes at a different price point.

Do you even know which one apple is using?



Why is it irrelevant?
Your not making much sense.
Last year 256 gb was the highest tier. This year it’s 512, that’s 256x2. Or did you expect it to be the same price.

The article plainly states that profit comes from the added 512gb tier because price of nand has remained flat compared to last year.



No sd cards are crap as a consumer I’m happy with nand and nvme.

If you want cheap Samsung has your back. Sd cards, ufs. Etc. Etc.

Not a shareholder this year, maybe next.

Did you even read the article?

Apple makes a killing on memory upgrades. If you look at the price that analysts suggest Apple is paying for the memory, apple has a 210% markup. Its irrelevant comparing this year and last or comparing Apple to other companies.
We are comparing the same model in the same year, just different memory sizes and comparing the price differential.
Then look at what Apple pays for memory. Then you see how much Apple is gouging the customer.

 

[DevNull0]

I would recommend the app tripmode for the Mac. I use it to control which apps have access to the internet when tethered to my phone and it helps prevents iCloud Photo Library from syncing (amongst other downloads).

I feel you. I had the same issues initially, which is why I prefer a cellular-enabled iPad over a MacBook so much.

Sorry for the delayed response. I'd never heard of tripmode and it sounds perfect. It's a bit concerning that it's not in the app store and the site seems to be tripmode.ch, but from the description, the app itself seems to do everything I'd want. And I guess you use and your mac hasn't gone up on smoke .

And good point about the iCloud photo library, that would be another big issue when it syncs without tripmode. Maybe you have a good fix of this too: The reason I don't use photos is that about 80% of what I shoot on my iPhone camera is stuff like product tags at stores, parking spot numbers, etc. Things I would never want synched to a photo library. And then 80% of the "good" pictures I take are with an SLR rather, and RAW files copied to the Mac and stored in folders on external drives to process in photoshop. I'd like to import them to photos and store the whole collection (pushing a terabyte) on iCloud, but if I use photos with synch, it's just full of the junk shots from the iPhone.

 

[FFR]

Did you even read the article?


Apple makes a killing on memory upgrades. If you look at the price that analysts suggest Apple is paying for the memory, apple has a 210% markup. Its irrelevant comparing this year and last or comparing Apple to other companies.

We are comparing the same model in the same year, just different memory sizes and comparing the price differential.

Then look at what Apple pays for memory. Then you see how much Apple is gouging the customer.

How much is apple paying for storage?

I did read the article and the analyst states plainly prices have remained flat yoy. They even go on to say increase in price is due to the larger Capacity iPhone X’s/max at 512gb.


Oh look Samsung is selling an nvme based drive for $400. They must be ripping off customers too.

https://www.techradar.com/reviews/samsung-x5-portable-ssd

TLDR nvme based storage > ufs based storage in both price and performance.

 

[dilbert99]

How much is apple paying for storage?

I did read the article and the analyst states plainly prices have remained flat yoy. They even go on to say increase in price is due to the larger Capacity iPhone X’s/max at 512gb.


Oh look Samsung is selling an nvme based drive for $400. They must be ripping off customers too.

View attachment 791283
https://www.techradar.com/reviews/samsung-x5-portable-ssd

TLDR nvme based storage > ufs based storage in both price and performance.

How much is apple paying for storage?

I did read the article and the analyst states plainly prices have remained flat yoy. They even go on to say increase in price is due to the larger Capacity iPhone X’s/max at 512gb.


Oh look Samsung is selling an nvme based drive for $400. They must be ripping off customers too.

View attachment 791283
https://www.techradar.com/reviews/samsung-x5-portable-ssd

TLDR nvme based storage > ufs based storage in both price and performance.

Read the article again, it tells you the price.

 

[FFR]

Read the article again, it tells you the price.

I did, the analyst lists the estimated price while directly comparing it to Samsungs ufs based storage solution, which let’s be honest is blatantly bias.

I provided an example of an nvme storage solution from Samsung which is more expensive when you climb to another tier. A 300 dollar difference. Where is the indignation there?

Or is that just reserved for apple?

I asked for the actual price. Do you know it?

If not, then what are we really discussing, someones best guess?

 

[dilbert99]

I did, the analyst lists the estimated price while directly comparing it to Samsungs ufs based storage solution, which let’s be honest is blatantly bias.

I provided an example of an nvme storage solution from Samsung which is more expensive when you climb to another tier. A 300 dollar difference. Where is the indignation there?

Or is that just reserved for apple?

I asked for the actual price. Do you know it?

If not, then what are we really discussing, someones best guess?

So you disagree with the analysts that have more credibility than you?

 

[FFR]

So you disagree with the analysts that have more credibility than you?

I haven’t suggested a number, have I?

I don’t think you read what I wrote so I will just post here.

I did, the analyst lists the estimated price while directly comparing it to Samsungs ufs based storage solution, which let’s be honest is blatantly bias.

I provided an example of an nvme storage solution from Samsung which is more expensive when you climb to another tier. A 300 dollar difference. Where is the indignation there?

Or is that just reserved for apple?

I asked for the actual price. Do you know it?

If not, then what are we really discussing, someones best guess?




Ps: you want to talk about analysts credibility.

Goldman admits it was wrong on Apple, boosts stock outlook by 20 percent

https://www.cnbc.com/2018/09/07/goldman-sachs-raises-apple-outlook-eat-our-hat-on-iphone-demand.html

They are analysts what makes you believe they have any credibility. .

Guess you don’t work in the financial industry.

 

[dilbert99]

I haven’t suggested a number, have I?

I don’t think you read what I wrote so I will just post here.

I did, the analyst lists the estimated price while directly comparing it to Samsungs ufs based storage solution, which let’s be honest is blatantly bias.

I provided an example of an nvme storage solution from Samsung which is more expensive when you climb to another tier. A 300 dollar difference. Where is the indignation there?

Or is that just reserved for apple?

I asked for the actual price. Do you know it?

If not, then what are we really discussing, someones best guess?




Ps: you want to talk about analysts credibility.

Goldman admits it was wrong on Apple, boosts stock outlook by 20 percent

https://www.cnbc.com/2018/09/07/goldman-sachs-raises-apple-outlook-eat-our-hat-on-iphone-demand.html

They are analysts what makes you believe they have any credibility. .

Guess you don’t work in the financial industry.

So you agree with the 210% markup calculation I did?
Or show your calculations...