The 16GB iPhone is NOT a ripoff

[geoff5093]

Nope. You will need 128GB if you are recording more than 4 hours of 4k.

And while you are at it why not drop the price to $550? Why not?

My point is Apple is running a business not a charity.

Look at all other specs of the phone. Processor speed and cores have increased, RAM has increased, performance has increased, the camera resolution has increased, etc. With each new generation the phone is expected to be better than the last, and part of this process is the eventual upgrade to the base storage, just like how it was upgraded from 4GB to 8GB and from 8GB to 16GB in the past. We are overdue for the jump from 16GB to 32GB.

 

[timeconsumer]

No. Apple is not ripping off anyone.

Subjective.

You are not looking at the big picture. You are simply focusing on how YOU benefit from getting a 32GB phone for the price of a 16GB. This is short term thinking. Just thinking about saving $100 TODAY.

Do you think Apple's profits are obscene? Their profit margin is only about 23% the last 2 years. Microsoft and Google have higher profit margins at about 25%. So is Apple really ripping off customers? For every dollar of goods they sell they only make 23 cents profit.

Source needed for these claims.

If Apple made the 1st tier 32GB then many who would have bought the 64GB phone would opt for the 32GB.

This is certainly a likely scenario.

For each of those decisions Apple would lose close to $100 in profit. The upgrades from 16 to 64 to 128 is almost pure profit.

Sounds like greed to me, but after all the point of a company is to make money. Zero issues with this here.

$100 may not sound like much to company like Apple but you need to realize how many phones they sell. Here is theoretical calculation:

Apple sells about 250 million iPhones a year.
Apple sells about 35% at the 2nd tier - 64GB
If Apple moves the first tier to 32 GB they could lose about 40% of the 64GB buyers
They will lose close to $90 of pure profit from those who decide to get the 32GB instead of the 64GB.

250,000,000 x 35% = 87.5 milion 64GB buyers
87.5 million x 40% = 35 million buyers who decide to get the 32GB instead of the 64GB
35 million x $95 of lost profit per phone = $3.3 billion in lost profit

Can you please provide a source for which you're pulling these figures from with your calculations?

Last year Apple made $40 billion in profit. A decrease of $3.3 billion is HUGE. That almost 8% of profits lost.

No arguments here.

But you may say who cares if Apple makes $37 billion instead of $40 billion. That's still alot of money. But you should care. Because if Apple's profits begin dipping, even a little it could damage the company. Just look at late 2012 and early 2013. The stock tanked 45% in a matter of 6 months. Why? Because profits were down. Were they down 40%? Down 50%. No. The profits were down a mere 5% and the stock tanked big time.

But why as a consumer should I care about Apple's stock price? You should care because the stock price has a DIRECT EFFECT on the quality of product Apple can produce. For most of the top talent that works at Apple, 90% of their compensation is from stock options. So if the stock tanks or is flat their pay will be drastically effected. Because of this many of the TOP EMPLOYEES will be targeted by other firms who can offer much higher pay because of stock options that grow in value while Apple's does not. Bottom line is with a weak stock price Apple will not be able to retain top talent. Without top talent Apple cannot produce the awesome products we all love.

In addition without the profits Apple cannot support and grow its ecosystem. Without strong profits Apple won't be able to have the money to spend on R&D, acquisitions, and investments in facilities and cutting edge technologies. Other companies like Samsung simply copy Apple's innovations. Apple on the other hand spends BILLIONS in R&D. Companies like Samsung pay very little to run Android on their smartphones. Apple has to invest BILLIONS to keeping iOS running well and improving it every year. Without strong profits Apple would have to cut corners and that would hurt the quality of product.

I think Apple would survive. Plus Apple is already cutting corners by not putting 32GB in their entry level iPhone.

The bottom line is the iPhone is a premium product.

Subjective.

It will cost more than a Samsung or HTC. Just as a BMW will cost more than a Kia. But you get what you pay for.

Yes because comparing a <$20,000 vehicle to a >$35,000+ vehicle makes sense. Obviously the one that cost 2x or 3x is going to be better. This is a terrible argument. Samsung's "flagship" has comparable prices to Apple's " flagship" which is why this comparison doesn't make sense.

Is there any doubt that an iPhone is a more quality product than a Samsung/HTC? If so then you should be willing to pay a few more bucks for that quality. And be happy that those extra profits will be invested in R&D/top talent/ect to keep pumping out awesome products.

No there's no doubt, if something occurs with my iPhone I can take it into an Apple Store and have a working phone after I leave the store. I will continue to support Apple products until I no longer see them as the best offering.

Here is a conversation I overheard the other day:

Concerned Troll: Yo, Tim Cook how is the iPhone sales going?

Tim Cook: Its going great! We can't even keep up with demand! We are sold out for the next 4 weeks.

Concerned Troll: Yo, Tim I got a great idea for next year.

Tim Cook: Lets hear it.

Concerned Troll: Next year you should give 16GB free to the low end phone.

Tim Cook: ok......

I'm assuming the guy meant free on contract. Not actually free...

The point is Apple can't even keep up with demand when the iPhone launches! Why the hell would they discount their phones by giving memory free for the low tier? This strong demand continues through the holiday season and through Chinese New Year in February. So why would Apple sell iPhones at a discount when they can't keep up with demand for the first 6 months of release? It would be pure stupidity.

I'm purely speculating on this but have you considered the possibility that Apple possibly hinders production so they can generate more hype for their product?

But guess what happens in March when the demand 'weakens'? We see all kinds of deals on iPhones. Last year BestBuy was giving $100 gift cards on all iPhone6 phones purchased. T-mobile and Sprint was doing the same. In other words you could get the 64GB iPhone6 for the price of the 16GB iPhone at launch. The bottom line is if someone is willing to wait 6 months after release they CAN get a 64GB iPhone for $650. They just need to wait a bit until the demand equalizes with supply.

Wait a second, products are cheaper after they've been out for awhile? Brilliant!

So if 16GB isn't for you, you have 2 options. Either shell out the extra $100 and get the 64GB phone or wait 6 months and buy the iPhones at a discount. If you can't wait then shell out the $100. And what the hell is $100 anyway? Spread over 2 years thats about $4 a month. Are you going to really die from shelling out $4 more a month for the 64GB model? If so then the iPhone isn't for you. You probably are better off buying a $300 Android phone or a used iPhone. The bottom line is you gotta pay to play. PERIOD. There are tens of millions of other people who are willing to pay.

I don't think people need you to tell them the options. Most people are familiar with the iPhone options at this point.

Apple is not greedy.

It's called business. But this point is also subjective.

Their profit margin is only 23%.

Source please.

They need to make profits to continue to support their awesome ecosystem, retain the best talent, and invest in R&D and new technologies. The demand for iPhone is so high in the first 6 months of release it is UNREASONABLE to expect Apple to 'discount' their top end phones. Those who have a tight budget and can't spend the extra $100 should either wait a few months till discount deals come around or realize that maybe a cheaper used iPhone or Android would be the more responsible thing to do.

What is your opinion on the new office/campus Apple is building? You didn't touch on this in your post at all, if Apple can spend all this money on a new office when they are doing just fine at their current location, then they should be able to produce an entry level iPhone at 32GB.

 

[geoff5093]

Why offer something that would/could be completely overkill to enterprise operations? Most ops that are needed:

VPN - done.
Mail - done.
RDP client - done.
Apps for sales - done.
Office Communicator client - done.

That, along with the OS push you over 8GB, but well and truly under 16GB. 32 would be more than what is needed for most enterprise operations, and if managed properly by IT, not even used at all. So wasted space on a properly controlled and centrally managed device would be money wasted by a company's budget, not a win for both.

BL.

But I assume an improved 12MP camera, faster graphics performance, and force touch are necessary for the enterprise right?

 

[C DM]

Why offer something that would/could be completely overkill to enterprise operations? Most ops that are needed:

VPN - done.
Mail - done.
RDP client - done.
Apps for sales - done.
Office Communicator client - done.

That, along with the OS push you over 8GB, but well and truly under 16GB. 32 would be more than what is needed for most enterprise operations, and if managed properly by IT, not even used at all. So wasted space on a properly controlled and centrally managed device would be money wasted by a company's budget, not a win for both.

BL.

What wasted money if that would be the base model that would cost the same?

 

[warrior2000]

Look at all other specs of the phone. Processor speed and cores have increased, RAM has increased, performance has increased, the camera resolution has increased, etc. With each new generation the phone is expected to be better than the last, and part of this process is the eventual upgrade to the base storage, just like how it was upgraded from 4GB to 8GB and from 8GB to 16GB in the past. We are overdue for the jump from 16GB to 32GB.

Look at all the features of the BMW M3.

Horsepower has increased.
Torque has increased.
Grip and Steering has increased.
yet is still only fits 4 people instead of 5


My point is not all people need 16GB. That may change next year.

 

[warrior2000]

What wasted money if that would be the base model that would cost the same?

wasted money for the corporation to monitor and scan a larger phone with more GB's of data.

 

[geoff5093]

Look at all the features of the BMW M3.

Horsepower has increased.
Torque has increased.
Grip and Steering has increased.
yet is still only fits 4 people instead of 5


My point is not all people need 16GB. That may change next year.

You really suck with car comparisons.

Your analogy would be more appropriate to the size of the car, not the number of passengers. Each model you see cars getting larger and larger, with more room inside the cabin, so actually you just proved my point.

wasted money for the corporation to monitor and scan a larger phone with more GB's of data.

lol wut?

 

[C DM]

wasted money for the corporation to monitor and scan a larger phone with more GB's of data.

Where does that kind of information come from that dealing with phones that have 32 GB is resulting in something noticeable than 16 GB for corporations?

 

[warrior2000]

Subjective.





What is your opinion on the new office/campus Apple is building? You didn't touch on this in your post at all, if Apple can spend all this money on a new office when they are doing just fine at their current location, then they should be able to produce an entry level iPhone at 32GB.

I'm not thrilled about it. But it could be a selling point to recruit employees and foster an enviroment of creativity.

 

[Pez555]

Thats like saying until you drove a Kia you have no idea if its better than a BMW. LOL.

An average guy is exactly that. Some dude on the street who knows nothing about contrast ratios and black levels.

So you're saying the S6 edge and iPhone 6 is like comparing a Kia to a BMW? Where is the logic in that? Not only that it basically proves to me that you have never even used an S6 edge....

You don't have to know anything about contrast ratios or black levels to know that the screen on the S6 is better.

Might have this as my new sig.

 

[warrior2000]

Where does that kind of information come from that dealing with phones that have 32 GB is resulting in something noticeable than 16 GB for corporations?

A person who has a 32GB phone vs a 16GB is more likey to store personal stuff on the business phone.

Plus I'm sure corps monitor company phones. It takes longer to scan/monitor a 32GB phone than a 16GB phone. Assuming both are almost full.

 

[warrior2000]

So you're saying the S6 edge and iPhone 6 is like comparing a Kia to a BMW? Where is the logic in that?


View attachment 581517

The logic? That Samsung copied the iPhone and can't come up with their own innovations? Which was proven in the courts and with public opinion. People view Samsung as a knock off brand in the USA and China. That's why there sales are tanking the last 2 years.

 

[geoff5093]

A person who has a 32GB phone vs a 16GB is more likey to store personal stuff on the business phone.

Plus I'm sure corps monitor company phones. It takes longer to scan/monitor a 32GB phone than a 16GB phone. Assuming both are almost full.

You clearly have no idea about the enterprise, stop pretending you do.

There is no greater chance to have something personal on a 16GB vs 32GB iPhone, as personal email accounts, facebook, instagram, etc. take up very little space.

What do you think is done to "scan" these phones? Do you think someone remotely looks through the storage of the phone? Or maybe they plug their phones in to be looked over? No, it's all done via mobile device management where systems like Meraki give the admin insight into apps and settings of the device, it doesn't make a lick of difference if it's 16GB vs 128GB.

 

[warrior2000]

You don't have to know anything about contrast ratios or black levels to know that the screen on the S6 is better.




View attachment 581517

could you link an article that shows the S6 has a way better screen than the iPhone6?
The articles that I read said the difference was very small.

 

[warrior2000]

You clearly have no idea about the enterprise, stop pretending you do.

There is no greater chance to have something personal on a 16GB vs 32GB iPhone, as accounts and personal apps take up very little space.

Of course there is greater chance. Dont be silly.

 

[warrior2000]

What do you think is done to "scan" these phones? Do you think someone remotely looks through the storage of the phone? Or maybe they plug their phones in to be looked over? No, it's all done via mobile device management where systems like Meraki give the admin insight into apps and settings of the device, it doesn't make a lick of difference if it's 16GB vs 128GB.

And what about backups? You don't think enterprises backup company phones?

 

[Pez555]

The logic? That Samsung copied the iPhone and can't come up with their own innovations? Which was proven in the courts and with public opinion. People view Samsung as a knock off brand in the USA and China. That's why there sales are tanking the last 2 years.

You're not addressing the point.

So you're saying the S6 edge is the Kia and the iPhone 6 is the BMW yea?

 

[Surf Donkey]

Of course there is greater chance. Dont be silly.

Yes, I just got a 1TB drive on my work laptop. Can't wait to fill it with personal stuff! I am so much more inclined to over my old 500 GB drive.

 

[geoff5093]

Of course there is greater chance. Dont be silly.

And your proof? The only thing I can think about are photos/videos, but if there is a no personal use policy than having 100 photos vs 500 photos doesn't make a difference.

And what about backups? You don't think enterprises backup company phones?

You don't think companies take manual backup images of their company phones do you? Corporate information is all server based, such as Exchange for email, contacts, and calendar. Anything personal is backed up to iCloud or is the users responsibility. The device itself and it's apps would be managed via MDM and would re-download profiles and apps once restored.

 

[magbarn]

Look at all the features of the BMW M3.

Horsepower has increased.
Torque has increased.
Grip and Steering has increased.
yet is still only fits 4 people instead of 5


My point is not all people need 16GB. That may change next year.

You forgot to mention that the previous E90 M3's V8 is a much better sounding engine especially at redline. Bmw also took away the sublime steering feel. The current M4 steering is so lifeless and robotic in comparison.

 

[Surf Donkey]

And your proof? The only thing I can think about are photos/videos, but if there is a no personal use policy than having 100 photos vs 500 photos doesn't make a difference.

Dude, don't question. Warrior2000 is only spitin' facts. That is how he comes at you, like mad facts in your face you don't know what hit you.

 

[fsumom]

4k video eats up about 1gb per minute. Good luck with a 16gb phone.

I got the 16gb and plan to just clean up my phone often like I do now with my 8GB. I cannot stand having hundreds of pictures/videos remain on my phone for long periods of time.

 

[mi7chy]

could you link an article that shows the S6 has a way better screen than the iPhone6?
The articles that I read said the difference was very small.

iPhone 6 is a lowly 750p display so it's not even in the same league as 1440p. SAMOLED is the best in the industry per the display authority Displaymate. Even without reading the article the difference is huge just looking at them side by side.

http://displaymate.com/Galaxy_S6_ShootOut_1.htm

 

[Pez555]

could you link an article that shows the S6 has a way better screen than the iPhone6?
The articles that I read said the difference was very small.

You seem to have a habit of deflecting point or putting words into people's mouth. I never said it was 'way better'. I simply said there is a difference. I don't need to quote any articles as I never read them anyway. I used my own eyes.

This is what it's all about, personal opinion. In my opinion the screen in the S6 edge is the bmw and the iPhone 6 screen is the Kia.

Edit: person above me has posted an article anyway.

 

[Hexiii]

17 pages already... nice... clearly you have a lot of time on your hands