Clearly more revenue and thus profit. Which is no surprise, they are a business after all.
From a business stand point they have me hook line and sinker.
If the base model was 32 I would just get that, no brainer. And if they kept everything the same (16, 32, and 64) I wouldn't be able to justify spending 100 dollars for a mere 16 gb more so I would have gone with the 16 gb model. NOW though they 64 gb (48 gb more) is a clear contrast and I'll certainly be going that route, giving Apple 100 dollars more then I normally would have.
Exactly my line of thought.
Nothing was bad about what Apple did (replace 32GB option with 64GB), it is only a good thing. The prices are now a little more in line with what the components cost. But Apple is doing what it does best... profit. They set an acceptable entry price, and then, with these storage options, make you think: if you pay that much, why not pay a comparatively small amount more.
Apple basically creates scenarios that make a customer's storage option decision difficult, because it measures customer demand and creates a scenario where it maximizes profit. (which is economics, cost vs demand) For example, if the storage tiers were $50 instead of $100, Apple knows customers would opt for the highest tier because customers would feel like they were getting the most of their money's worth with that option. On the other hand, if Apple kept the old $100 16GB, 32GB, and 64GB tiers, the money wise decision would be to get the entry level model.
And another dimension to this is since flash storage has decreased in price so much the last few years (which is due to increased demand and thus production improvements), many iPhone users still have the perception that it is expensive. Samsung phone users know it is much cheaper now, because they have had experience buying quality 64GB Sandisk SD cards for $36! But so many iPhone users do not know that flash storage is now as cheap as it is, so they will still gladly pay for overpriced iPhone storage. It is simply a matter of many users' perception, due to the rapid decrease in flash storage prices, and Apple is milking that to maximize profits.