But now you pay a monthly fee to own your iPhone, with no interest penalty. And after 1 year, you can upgrade to the very latest model, presumably keeping your monthly payments the same.
It's really hard to imagine the customer who now understanding the true cost of their phone, who previously paid for their phones monthly under a two year contract, year after year, not wanting to participate in such a plan. Who would own a phone anymore when there's an interest free option that brings you the latest and greatest hardware every year with no penalties whatsoever?
1GB RAM is going to be more than enough to get someone through another year, if not two, with no problems. I'm using a 5s currently, and except for Pay and occasionally speed, 1GB is more than enough.
But since customers can upgrade next year without any penalty, if anyone finds 1GB or 16GB limiting, they can easily correct it within a year. In fact they can upgrade after 6 months as long as they pay off the balance of the phone first, which then applies as a trade in value against the new phone. Whatever fancy accounting allows Apple and the carriers to offer such a 0% financing plan, must also take into consideration the cost of putting more RAM and more storage into these models, and how the cost impacts the overall business model. So frankly, I just don't see the need to criticize Apple's decisions.
I do agree that a first time iPhone customer might be frustrated by getting a 16GB phone, and that could potentially sour them on the Apple experience, I have to imagine the benefits of iOS and the Apple ecosystem will offset the frustration. And even then Apple offers a pretty good solution for the frustrated customer.
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I would really like to see a link to this data ...