The 16GB iPhone is NOT a ripoff

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TommyA6 said:
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).
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So you want this line up:

32 GB - $650
64 GB - $750
128 GB - $850

Really? So now you want the 64GB buyers to pay $100 for only 32GB when last year they got 48GB for $100? So now you are charging 128 GB buyers more for additonal GB also?

Now you are ripping off the 64GB/128GB buyers.
 
lordofthereef said:
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.
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So we agree that Apple is in the best position to balance selling price with profits and supply and demand?

Because they have all the relevent information?
 
warrior2000 said:
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.
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iPhone profit margins are much higher than 25%.
 
OP, you have to understand human nature. They want the 32 Gb for the same price as the 16 GB offered now not caring about Apple at all, than later if this is adapted, they will want 64 GB of memory for the same price as the 32 or 16 GB thinking that Apple can afford it, and they know more about Apples profit, overhead, cost of their building/power/electricity, not to mention R&D, and cost of living increases. Its just how it is. I'm fine with 16 GB/the iCloud or my thumb drive as storage :D
 
TommyA6 said:
iPhone profit margins are much higher than 25%.
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The company wide profit margin is 23%-25%

iPhone makes 70% of Apple's profits. The profit margin may be a bit higher than 25% but not much higher. It is mathematically impossible for the iPhone's profit margins to be higher than 30%
 
warrior2000 said:
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.
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Nope, but after acquiring the VW/Audi designer, Kia/Hyundai are slowly getting there. While not as good as a 6s, a $400 Android phone comes close to a 6. No carrier bloat, a decent camera, decent memory, storage and processor and timely (for Android) updates all make for a pleasant experience.
 
warrior2000 said:
So we agree that Apple is in the best position to balance selling price with profits and supply and demand?

Because they have all the relevent information?
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This was never in contention. Your post was about greed (which I'm not arguing for or against); it's right there in. The title. But Apple being in the best position to figure out how they can profit the best doesn't do anything for your argument that it isn't a greedy move. It's just that simple.
 
bchreng said:
Nope, but after acquiring the VW/Audi designer, Kia/Hyundai are slowly getting there. While not as good as a 6s, a $400 Android phone comes close to a 6. No carrier bloat, a decent camera, decent memory, storage and processor and timely (for Android) updates all make for a pleasant experience.
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What $400 phone is this?
 
lordofthereef said:
This was never in contention. Your point was about greed (which I'm not arguing for or against). But Apple being in the best position to figure out how they can profit the best doesn't do anything for your argument that it isn't a greedy move. It's just that simple.
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You seriously think Apple will try to maximize profits in the SHORT TERM and risk losing customers in the LONG TERM because of price gauging? Seriously?
 
ABC5S said:
OP, you have to understand human nature. They want the 32 Gb for the same price as the 16 GB offered now not caring about Apple at all, than later if this is adapted, they will want 64 GB of memory for the same price as the 32 or 16 GB thinking that Apple can afford it, and they know more about Apples profit, overhead, cost of their building/power/electricity, not to mention R&D, and cost of living increases. Its just how it is. I'm fine with 16 GB/the iCloud or my thumb drive as storage :D
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You are right. Exactly right.

Its crazy that the iPhone is exactly the same price as it was in 2007 about $650.

Everything else is more expensive = food, water, gas, housing, ect.

Yet people grumble about the iPhone being too expensive.
 
warrior2000 said:
So you want this line up:

32 GB - $650
64 GB - $750
128 GB - $850

Really? So now you want the 64GB buyers to pay $100 for only 32GB when last year they got 48GB for $100? So now you are charging 128 GB buyers more for additonal GB also?

Now you are ripping off the 64GB/128GB buyers.
Click to expand...
The 64GB owners get exactly what they got last year, 64GB today is the same as 64GB yesterday, they aren't loosing anything.

Apple did this themselves with the iPhone 6. The previous models were 16/32/64, but instead of raising them all they decided to make an extra buck and only raise the last two to 64/128. The size should double for each $100.

The fact is, 16GB is more and more useless every day. Apple adds in 4k recording and live photo which take up 2x or more space, so customers can hold even less content on their phones. They need to increase the capacity to accommodate for this, especially when Android phones have started to ship with 32GB for over a year.

And don't start with the "Android phones aren't premium" garbage. They have premium phones like the S6, Note 5, Xperia, etc. Many of your points are simply personal preference regarding OS and ecosystem.
 
warrior2000 said:
You seriously think Apple will try to maximize profits in the SHORT TERM and risk losing customers in the LONG TERM because of price gauging? Seriously?
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Where did I say anything about price gouging? Lol. I'm just going this agree to disagree man, you're sitting here putting words in my mouth. For the second (and I promise last) time, take it easy!
 
TommyA6 said:
iPhone profit margins are much higher than 25%.
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Lets do some math.

For FY2014 -
Apple Revenue - $183 billion
Apple Profit - $39 billion
Profit margin - 21.3%

iPhone revenue was $100 billion last year

So lets say iPhone has 30% profit margin.
$100 billion x 30% profit margin = $30 billion profit

That leaves only $9 billion in profit for the rest of the company.
That leaves only a 11% profit margin for the rest of the company ( $9 billion / $83 billion)

Do you seriously think Apple only makes 11% profit on iPad, Mac, App Store combined? No way on earth they make that little.

If we adjust the iPhone profit margin to 25% than the rest of the products make 17% profit margin. That is much more realistic.

Conclusion: iPhone profit margin is somewhere between 25%-30%. But highly unlikely that it is 30% or even 28-29%
 
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TommyA6 said:
http://www.quora.com/What-is-the-profit-margin-of-an-iPhone-6

37-39% estimate. Probably even higher.

iphone 6 costs roughly $220 in parts. 6 Plus only $15 more. I doubt r&d, shipping etc. cost $200 extra per phone.
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That estimate is Total ********.

Last year Apple had $183 billion in revenue.
Apple had $39 billion in profit.
That is a 21.3% company wide profit margin.

iPhone revenue was $100 billion last year.


$100 billion in iPhone revenue x 39% profit margin = $39 billion in iPhone profit.


So if that estimate that ******** estimate is correct it means:

Apple made $39 billion on iPhone profit last year.
Apple made ZERO PROFIT on iPad, Mac, Software, Services, iPod, and accessories.

That is total ********.

below is the SEC filing that shows Total Apple revenue, Apple profit, and iPhone revenue:

http://yahoo.brand.edgar-online.com...ex=2&dcn=0001193125-14-383437&nav=1&src=Yahoo
 
warrior2000 said:
That estimate is Total ********.

Last year Apple had $183 billion in revenue.
Apple had $39 billion in profit.
That is a 21.3% company wide profit margin.

iPhone revenue was $100 billion last year.


$100 billion in iPhone revenue x 39% profit margin = $39 billion in iPhone profit.


So if that estimate that ******** estimate is correct it means:

Apple made $39 billion on iPhone profit last year.
Apple made ZERO PROFIT on iPad, Mac, Software, Services, iPod, and accessories.

That is total ********.

below is the SEC filing that shows Total Apple revenue, Apple profit, and iPhone revenue:

http://yahoo.brand.edgar-online.com...ex=2&dcn=0001193125-14-383437&nav=1&src=Yahoo
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You are correct here. What the article assumed wrong was the selling price of the 16 gb iPhone. It isn't really $649. It noticeably less, considering most iPhones are sold through carriers.
Still doesn't make the 16 gb model a good buy. $100/$200 more for 64/128 gb is the real ripoff though.
 
Bryan Bowler said:
Great post OP. I'm glad there are smart people out there that can see the big picture.
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Thanks man.

I'm just sick and tired of people bashing an amazing company that produces awesome products. We don't need another company to produce crap for a cheap price. I'm willing to pay a little extra to have the best.
 
TommyA6 said:
You are correct here. What the article assumed wrong was the selling price of the 16 gb iPhone. It isn't really $649. It noticeably less, considering most iPhones are sold through carriers.
Still doesn't make the 16 gb model a good buy. $100/$200 more for 64/128 gb is the real ripoff though.
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rip-off?

Find me a better for phone for $750 than the iPhone 6s 64GB?
 
bchreng said:
Why? So you can nitpick and rip it apart?

The Moto X Pure and Oneplus 2.
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Those are very nice phones. But they are not iPhone 6s quality.

btw: The MotoX pure that is $400 has only 16GB

Oneplus 2 starts to lose 40% of its battery life in a matter of days:
http://indianexpress.com/article/technology/tech-reviews/oneplus-2-review-one-month-update/

These are not premium top end phones. They are not built with the best materials and parts. Neither do they have a great warranty, customer support, or ecosystem.
 
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