The 16GB iPhone is NOT a ripoff

[warrior2000]

The reason we are upset is because a base model iPhone is $650/$750. Compare that to many Android phones selling for $400-$600 that actually start with 32GB.

Do BMW's cost the same as Kia's?

The iPhone is a premium product. Those Android phones are NOT!

You need to pay more for the best. And the iPhone is flatout the best Phone/ecosystem/customer service you can buy.

And please enlighten me about these Android phones that cost $400 that are just as good as an iPhone 6S.

 

[warrior2000]

Way better phone? I think a lot of people would differ on that opinion. Apple's magic lies in their ecosystem with things like iTunes, iMessage, and iCloud. There is nothing about the 6s that is better than the S6 save maybe 3D touch.

So ecosystems are free?

Apple has literally invested TENS OF MILLIONS of man hours, almost a decade, and TENS OF BILLIONS of dollars in their ecosystem.

Without a great ecosystem and great OS the best hardware does not matter.

You want the best? You pay a premium. The iPhone is the best. Tell me in what industry this isn't true.

And if your opinion is the iPhone is not the best phone on the planet then feel free to buy an Android. But looking at the FACTS is sure proves my point that the iPhone is the best. iPhone has about a 80% market share on high end phones.

 

[TommyA6]

16gB version is not for people who plan to film a lot in 4k. For those there is the 64gB version.

16 GB is a ripoff. Not that I care that much, since I've been buying the 32/64 GB ones from the beginning.
They could at least lower the price of the 64/128 GB phones.

 

[kasakka]

My 2.5 year old Galaxy S4 has 16 GB. I don't have a single game (usually the largest app type) and even then I only have about 4 GB left in space after OS, all the apps, pictures and a few short videos. The saving grace is the SD slot on the unit, which no Apple phone has. That's why 16 GB is completely miserable on a phone that costs 700 euros.

 

[warrior2000]

16 GB is a ripoff. Not that I care that much, since I've been buying the 32/64 GB ones from the beginning.
They could at least lower the price of the 64/128 GB phones.

Its the opposite. If Apple started the phones at 32GB they would have to raise the price of the 64/128GB phones to make up for the lost sales.

The 16GB may be a ripoff for you but its a godsend for many others. Stop trying to speak for the entire population of iPhone users. I know a lot of people who are perfectly happy with 16GB.

 

[warrior2000]

My 2.5 year old Galaxy S4 has 16 GB. I don't have a single game (usually the largest app type) and even then I only have about 4 GB left in space after OS, all the apps, pictures and a few short videos. The saving grace is the SD slot on the unit, which no Apple phone has. That's why 16 GB is completely miserable on a phone that costs 700 euros.

A BMW cost more than a Kia.
An iPhone will cost more than a Galaxy phone.

If 16GB was so miserable why is it the top selling iPhone?

Apple has spent BILLIONS developing the iPhone. Samsung simply reverse engineered the Galaxy.
Apple has invested over a decade and TENS OF BILLIONS in its ecosystem. Samsung simply uses free Android and the PlayStore.
Apple has retail stores where you can talk to real people. Samsung you need to ship your phone to some unknown factory.

Is there any wonder why the iPhone cost more?

The imitation will cost cost cheaper than the real deal.

 

[geoff5093]

Do BMW's cost the same as Kia's?

The iPhone is a premium product. Those Android phones are NOT!

You need to pay more for the best. And the iPhone is flatout the best Phone/ecosystem/customer service you can buy.

And please enlighten me about these Android phones that cost $400 that are just as good as an iPhone 6S.

A BMW cost more than a Kia.
An iPhone will cost more than a Galaxy phone.

If 16GB was so miserable why is it the top selling iPhone?

A BMW is pretty much better than a Kia in every way, so your comparison is not valid. You pay more for a premium product, but you then get lackluster storage. What about the BMW is lackluster compared to a Kia?

Have you seen the Galaxy S6/Note 5? It's a glass/metal phone with top tier specs. I don't see how that's not considered premium.

16GB is top selling because the iPhone is expensive as is, and people don't want to pay $100 more.

 

[TommyA6]

Did you even read my post?

If Apple's profits shrink the stock price will crash. If the stock price crashes they WILL LOSE TOP TALENT. All the top employees get 90% of their compensation from stock options.

Do you really want Apple to lose its top employees?

Lol, "Their stock will crash". Ridiculous assumption. The stock could drop a few percent, but not by much.
Also the profits wouldn't shrink a lot. They would probably drop by a fraction of percent.

 

[yaboyac29]

I think we all know it's good for business. 16GB is just a little small considering the 4K videos, live pictures, etc. But we are still buying it.

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

2 things

1. 4K can be turned off.
2. If you can't afford a higher storage phone, then you probably can't afford a 4K tv at the moment.

 

[warrior2000]

A BMW is pretty much better than a Kia in every way, so your comparison is not valid. You pay more for a premium product, but you then get lackluster storage. What about the BMW is lackluster compared to a Kia?

Have you seen the Galaxy S6 / Note 5? It's a glass/metal phone with top tier specs. I don't see how that's not considered Premium.

16GB is the top selling because the iPhone is expensive as is, and people don't want to pay $100 more.

I'm comparing these phones:

Galaxy S6 - 32GB - $650
iPhone 6S - 64GB - $750

The iPhone is $100 more than the Galaxy but better than it.

Better resale value
Better name prestige
Better real world performance
Better ecosystem
Better customer service

 

[lordofthereef]

A few points I had to make:

1. Very few people are calling this a rip off. Most people are simply upset that they either have to buy too little or too much memory.

2. Many people would be just fine spending an extra $50 for a 32gb device. This goes hand in hand with the first point.

3. Profit margins are sort of irrelevant when you're selling in the types of volume they're selling. Still, I can't imagine profit margins changing more than a fraction of a percentage point at the volumes Apple buys memory. But again, that's mostly irrelevant.

4. The biggest issue I see is Apple adding features like 4k recording, love pictures (or whatever they're calling it), upping the limit for app size, etc. it's true that I don't need to record in 4k or even have live photos, but that's like giving my Camaro a 5 gallon gas tank and telling me I need to buy a higher trim model in order to enjoy the larger tank. In willing to bet there are people that could live with that as well

 

[TommyA6]

Its the opposite. If Apple started the phones at 32GB they would have to raise the price of the 64/128GB phones to make up for the lost sales.

The 16GB may be a ripoff for you but its a godsend for many others. Stop trying to speak for the entire population of iPhone users. I know a lot of people who are perfectly happy with 16GB.

I'm not saying they should both. Either decrease the price of 64/128 gb models, or start at 32 gb and increase the price of the higher storage models slightly ($19 at most).

 

[warrior2000]

Lol, "Their stock will crash". Ridiculous assumption. The stock could drop a few percent, but not by much.
Also the profits wouldn't shrink a lot. They would probably drop by a fraction of percent.

In 2012/2013 Apple's profits was down less than 10% and the stock crashed 45%

I've been following Apple's stock for a very long time. I know what I'm talking about. If Apple's profits shrink just a few percentage points the stock will crash. In fact it already crashed 32% this year with just the POSSIBILITY of profits shrinking. It went down from $134 to $92 in August.

 

[TommyA6]

I'm comparing these phones:

Galaxy S6 - 32GB - $650
iPhone 6S - 64GB - $750

The iPhone is $100 more than the Galaxy but better than it.

Better resale value
Better name prestige
Better real world performance
Better ecosystem
Better customer service

All of this is true. Still doesn't change the fact that 16 gb is a ripoff. Apple has $200 billion in cash and that fraction of a percent drop in profits wouldn't make any difference in their daily operations, R&D...

 

[lordofthereef]

I'm comparing these phones:

Galaxy S6 - 32GB - $650
iPhone 6S - 64GB - $750

The iPhone is $100 more than the Galaxy but better than it.

Better resale value
Better name prestige
Better real world performance
Better ecosystem
Better customer service

At lest half of your points are opinions here. Better resale value and customer service is about all you have that's solid. The rest can be argued either way depending on where you are in the world and who you ask.

 

[ricktat]

Way better phone? I think a lot of people would differ on that opinion. Apple's magic lies in their ecosystem with things like iTunes, iMessage, and iCloud. There is nothing about the 6s that is better than the S6 save maybe 3D touch.

Samsung has reduced bloatware.... but they still have it. Especially with ATT... So I would ass that to the list

 

[TommyA6]

In 2012/2013 Apple's profits was down less than 10% and the stock crashed 45%

I've been following Apple's stock for a very long time. I know what I'm talking about. If Apple's profits shrink just a few percentage points the stock will crash. In fact it already crashed 32% this year with just the POSSIBILITY of profits shrinking. It went down from $134 to $92 in August.

The stock didn't crash because of profit drop, but because of China uncertainty.

 

[bchreng]

No. Apple is not ripping off anyone.

Long rant

Somebody got up on the wrong side this morning

 

[warrior2000]

A few points I had to make:





3. Profit margins are sort of irrelevant when you're selling in the types of volume they're selling. Still, I can't imagine profit margins changing more than a fraction of a percentage point at the volumes Apple buys memory. But again, that's mostly irrelevant.

Its not really about profit margins but total profits.

The incremental $100 from upgrades from 16 to 64 to 128GB is almost all pure profit. If Apple loses a significant amount of upgraders their bottom line will be hurt significantly.

Apple's company wide profit margins are 25%

Lets say the average iPhone is $680.
At a 25% profit margin Apple makes $170 profit per phone.
The cost to Apple for swapping a 16GB memory for 64GB memory is probabily about $15.
So Apple makes about $85-$90 on pure profit from memory upgrades. That's a massive amount of profit lost.

16GB iPhone profit = $95
64GB iPhone profit = $170

Now multiply that lost profit by TENS OF MILLIONS of units and you can see the lost profits is significant.

 

[lordofthereef]

Its the opposite. If Apple started the phones at 32GB they would have to raise the price of the 64/128GB phones to make up for the lost sales.

The 16GB may be a ripoff for you but its a godsend for many others. Stop trying to speak for the entire population of iPhone users. I know a lot of people who are perfectly happy with 16GB.

Are you operating with the assumption that they're never going to move away form 16gb base? Can you explain why they've started moving that direction with their iPads, seemingly without causing terrible stock crashes and income loss?

 

[lordofthereef]

Its not really about profit margins but total profits.

The incremental $100 from upgrades from 16 to 64 to 128GB is almost all pure profit. If Apple loses a significant amount of upgraders their bottom line will be hurt significantly.

Apple's company wide profit margins are 25%

Lets say the average iPhone is $680.
At a 25% profit margin Apple makes $170 profit per phone.
The cost to Apple for swapping a 16GB memory for 64GB memory is probabily about $15.
So Apple makes about $85-$90 on pure profit from memory upgrades. That's a massive amount of profit lost.

16GB iPhone profit = $95
64GB iPhone profit = $170

Now multiply that lost profit by TENS OF MILLIONS of units and you can see the lost profits is significant.

This jump to 64gb from 16 is incredibly new; one years. I'm insure how you are speaking with such certainty about trends you can't possibly know. How many more 64gb phones is Apple selling than 16? How is that number different from three years ago?

 

[warrior2000]

The stock didn't crash because of profit drop, but because of China uncertainty.

China uncertainty would lead to profit loss.

Hell look at the Q3 earnings in July. Apple's revenue was up 33% YoY. Wall Street wanted 35% growth. Because of that the stock tanked 20%. It tanked 20% on 35% profit growth!!! Now imagine with Apple's profit shrinks!

 

[warrior2000]

Are you operating with the assumption that they're never going to move away form 16gb base? Can you explain why they've started moving that direction with their iPads, seemingly without causing terrible stock crashes and income loss?

They moved that direction only with iPad Pro not the Mini or regular iPad. The iPad Pro is a Professional product so they need to start at a higher memory.

But the iPad is not a huge driver for Apple profits anyway. iPad is only about 8% of Apple's profits. The iPhone is 70%.

Also the iPad unit sales are going down while the iPhone is exploding up.

I could see 32GB being the base for iPhone7 if 4k video becomes big or if 16GB sales tank this year.

 

[warrior2000]

This jump to 64gb from 16 is incredibly new; one years. I'm insure how you are speaking with such certainty about trends you can't possibly know. How many more 64gb phones is Apple selling than 16? How is that number different from three years ago?

They are selling more high end phones now. Just look at average selling price of iphones.

 

[lordofthereef]

They moved that direction only with iPad Pro not the Mini or regular iPad. The iPad Pro is a Professional product so they need to start at a higher memory.

But the iPad is not a huge driver for Apple profits anyway. iPad is only about 8% of Apple's profits. The iPhone is 70%.

Also the iPad unit sales are going down while the iPhone is exploding up.

I could see 32GB being the base for iPhone7 if 4k video becomes big or if 16GB sales tank this year.

Hence why I said they are starting. But my greater point is you can't possibles know how much apple is making between devices because we just don't know the numbers. Anyway, I'm out. You keep repeating the same thing over and over. Take it easy man.