No 128GB capacities?

Discussion in 'iPhone' started by ocnitsa, Sep 19, 2017.

  1. ocnitsa macrumors 6502

    Joined:
    Jan 24, 2011
    #1
    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?
     
  2. pat500000 Suspended

    pat500000

    Joined:
    Jun 3, 2015
  3. Starfyre, Sep 19, 2017
    Last edited: Sep 19, 2017

    Starfyre macrumors 68030

    Starfyre

    Joined:
    Nov 7, 2010
    #3
    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.
     
  4. dannyTO macrumors regular

    dannyTO

    Joined:
    Sep 15, 2014
    Location:
    Toronto
  5. GoingDark macrumors 6502

    Joined:
    Nov 2, 2013
    #5
    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."
     
  6. bambooshots macrumors 65816

    bambooshots

    Joined:
    Jul 25, 2013
    #6
    What color are the trees in your universe?
     

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5 September 19, 2017