No 128GB capacities?

ocnitsa

ocnitsa

macrumors 6502a
Hi all,

Anyone know what's up with this? Was no one buying this option in the earlier phones that offered it? Or, is it something else that has Apple eliminating that tier?
 
It's Apples form of gentrification, getting the poorer people to buy into lesser capacity, and forcing more rich people into buying the the max capacity. There is no middle-class.
 
Last edited:
ocnitsa said:
Hi all,

Anyone know what's up with this? Was no one buying this option in the earlier phones that offered it?
Click to expand...
Quite the opposite I would imagine - I suspect that the 128GB option was probably the most popular. There are two simple reasons for dropping it from the lineup.

1) Simplifies manufacturing/demand forecasting/supply chain
Apple just went from 14 possible iPhone 8 SKUs (Black/Silver/Gold/Rose Gold in three sizes, Jet Black in two sizes) to six (Black/Silver/Gold in two sizes). Cutting the number of SKUs in half means fewer iPhones sitting in inventory while at the same time making it feel like there's greater availability, since they can make "more" of each SKU while keeping the total aggregate number of phones produced the same as previous years.

2) Tim Cook's quest for ever-higher ASP (Average Selling Price)
There are many people out there who will always buy the cheapest iPhone, so by making the base model 64GB and increasing the price by $50, that boosts ASP. Then there are people who need more than the base storage, but don't need the top-tier storage (this would be the 128GB market). By removing the middle and forcing these people into the top-tier, that drives ASP through the roof. This is going to be a very important metric for shareholders during the quarterly earnings calls, especially if iPhone 8/8+ demand is tepid - Apple can say, "yes, we sold fewer iPhones, but we dramatically increased ASP to make up for it, so we made more from each iPhone we did sell."
 
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