The reason why Apple still sells 16GB phones

[trifid]

Then either don't buy an iPhone or move up to higher storage.

Apple doesn't sell iPhones solely based on what the customer believes or wants. They sell based on what makes them the most profit. Just like any for-profit business.

We don't have to like it but Apple is not going to change it just because we think they should.

Apple builds a relationship with the customer though, if/when the customer feels a company is ripping them off to pieces, or stopping innovating, it starts to create animosity and distrust. At some point it will reflect in the market, Apple's uncontrollable greed is finally showing its effect.

 

[eyoungren]

The only reason I can think to continue as per the norm is investors wanting very, very short term profits and they might advocate different storage sizes and complicated line ups.
But I think your reasoning isn't right, it's both customer and company centric in harmony. Customers that leave Apple for two years or more also leave iCloud services, Apple Music, App Store, as well as other Apple devices eg Watch, iPad etc. Lost opportunities in these extra services and products cost Apple more overtime. The last thing Apple wants is to have its customers looking over the other side of the fence and then actually moving to the other side of the fence.
If you're happy with your current device and Apple hasn't persuaded you to upgrade to their new device, they are not doing their job, they are doing something wrong. Gigabytes storage isn't a reason to upgrade, new and interesting features, a new beautiful "to die for" design, a unique new exclusive service are reasons to upgrade.
By Apple keeping storage as a choice and keeping storage low just introduces frustration into their experience. We want to force customers to join Apple or upgrade because of the "must have" features of this new product. We don't want to force customers to upgrade due to frustration. That strategy might work once, but frustrating customers has its limits and I know from people I've spoken to, customers are currently looking over the other side of the fence.

I think the only ones being frustrated are those who understand a thing or two about technology.

I have two coworkers who bought 64GB iPhones the second time around last year. The paid for the extra storage because it's what fit their needs. There were no frustrations or complaints, it's just what happened to work for them. And their carriers gave them a good deal.

But most people who get the 16 either have the option of buying the 64 or higher, increasing the amount of iCloud storage they use or just dealing with 16GB. Either way, Apple wins.

For those that tend to stay with Apple, 16GB or now then iCloud and integration in the Apple ecosystem provides benefits that allow them to work around that 16GB limitation. Give those customers much larger capacities at the same price and there is no real incentive to go after Apple's other services.

So, there is your incentive to not jump the fence.
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Apple builds a relationship with the customer though, if/when the customer feels a company is ripping them off to pieces, or stopping innovating, it starts to create animosity and distrust. At some point it will reflect in the market, Apple's uncontrollable greed is finally showing its effect.

You may be right. Only time will tell.

Apple however does tend to make it's own reality. People were once complaining about Apple's lack of NFC. Now there is ApplePay.

 

[AZhappyjack]

All of this hand wringing is comical. Apple continues to sell 16gb phones because people buy them. Maybe it's people who aren't tech savvy, maybe it's people on a budget, or maybe it's the large corporations who operate totally in the cloud. But the 16gb phones continue to sell. And because of that, Apple will continue to produce them.

To change the status quo, the population needs to step up and stop reinforcing the behavior that they want changed. Basic Econ 101.

 

[smacrumon]

I think the only ones being frustrated are those who understand a thing or two about technology.

I have two coworkers who bought 64GB iPhones the second time around last year. The paid for the extra storage because it's what fit their needs. There were no frustrations or complaints, it's just what happened to work for them. And their carriers gave them a good deal.

But most people who get the 16 either have the option of buying the 64 or higher, increasing the amount of iCloud storage they use or just dealing with 16GB. Either way, Apple wins.

For those that tend to stay with Apple, 16GB or now then iCloud and integration in the Apple ecosystem provides benefits that allow them to work around that 16GB limitation. Give those customers much larger capacities at the same price and there is no real incentive to go after Apple's other services.

So, there is your incentive to not jump the fence.

No, tech enthusiasts are being frustrated on a number of other things as well, but this very much applies to random customer X, Y, Z. These customers who just buy iPhone, and don't really know the difference about gigabytes or how much a photo or video equates, then receive error messages about storage being low, error messages they can't take a photo or download an app because their storage is now full. These customers too are forced to make decisions about maintaining their devices.

These are all really bad design outcomes. This isn't a good experience. The customer doesn't need to seek out workarounds. Customers come to Apple for the bliss they were promised only to find it wasn't exactly what they bargained for.

Believe me, some people who were once avid Apple lovers, evangelists, have lost the love and are looking to buy into the property over the other side of the fence. Apple can change this, but the window to do so is closing.

Personally I'd be incredibly disappointed if Apple reverted to its mid 1980's to late 1990s mentality, profiting from its current customer base, only to see it again on a glide slope by refusing to think different on storage as I described earlier.

 

[eyoungren]

No, tech enthusiasts are being frustrated on a number of other things as well, but this very much applies to random customer X, Y, Z. These customers who just buy iPhone, and don't really know the difference about gigabytes or how much a photo or video equates, then receive error messages about storage being low, error messages they can't take a photo or download an app because their storage is now full. These customers too are forced to make decisions about maintaining their devices.

These are all really bad design outcomes. This isn't a good experience. The customer doesn't need to seek out workarounds. Customers come to Apple for the bliss they were promised only to find it wasn't exactly what they bargained for.

Believe me, some people who were once avid Apple lovers, evangelists, have lost the love and are looking to buy into the property over the other side of the fence. Apple can change this, but the window to do so is closing.

Personally I'd be incredibly disappointed if Apple reverted to its mid 1980's to late 1990s mentality, profiting from its current customer base, only to see it again on a glide slope by refusing to think different on storage as I described earlier.

Obviously we have two different outlooks on this. I will say, however, that Apple has bent to the will of the customer before. Even when Jobs was running the place. It may happen again, but I doubt if it will be exactly what the customer wants it to be. More likely it will be enough to pacify the customer while still maintaining a profit margin for Apple.

I should mention however, I am an atypical Apple customer. I am typing this on a 2001 PowerMac G4. I own an iPhone 6s+ (128GB) but only one 2006 era Intel Mac.

Apple's attempts to get me to upgrade regularly and/or utilize much of their services has failed miserably over the years.

 

[Newtons Apple]

I know a few Apple phone users who simply use their device as a phone and for emails and texts and 16gb is more than enough. They have no want or need for more and it would be doing them a disservice to force a 32 or 64gb device on them.

 

[Blaze4G]

people continue to buy 16GB because they THINK they don't want more. It can be seen in so many industries, across many different cultures and different people. Let me explain.

If a User has a 16 GB phone. He HAS to make it work right? When the same user gets a 32+ GB phone he usually surpasses 16 GB not long after.

For me, I had a phone with only 16 GB and a meh camera. I got by with 16 GB for 2 years with zero issues. I had the thought process that I don't really take much pics and I don't need much storage. After I got a 32 GB phone with a great camera. Now I take tons of pics and used more than 16GB in the first 2 weeks of ownership.

Now could I go back to 16 GB? Hell no. However if someone has been using 16 GB up until this day then they don't really see a need or want for 32+ GB until they have experienced it.

Another example is large phones. I use to think persons with Samsung Notes were crazy to have such a huge phone. Why would I want such a big screen? 5 inches is the max I would ever want. Then I got a 5.7 inch screen phone and would never go back to a small screen phone.

Think of something you use to do or have in the past that you thought you would never need to upgrade or need more. Bet you can't go back now. Could be tube TVs, 720p res laptops/tvs, a car without bluetooth, 30 pin connector, smart watch, tablet, 3.5 inch screen phone, etc.

Note: In no way is this true for all. However I think this is a major reason.
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I know a few Apple phone users who simply use their device as a phone and for emails and texts and 16gb is more than enough. They have no want or need for more and it would be doing them a disservice to force a 32 or 64gb device on them.

how would it be a disservice? How does an additional 16 GB affect them in any way? Does it make the phone less functional or something?

 

[AZhappyjack]

Keeping 16 GB base model for iPhone 7 will cause tremendous loss of goodwill for Apple. See the amount of hate on iPhone 7 rumour articles. Apple has already lost their sheen.

I don't remember seeing so much negativity back when Steve Jobs was alive. There was definite excitement whenever any iPhone related rumour came out. 7-8 years back, iPhone was seen as luxury item. But now it has started to become bare necessity. When people perceive something as bare necessity, it's value is expected to be lower.

So forcing people to pay more for 64 or 128 gb iPhone by keeping lower model at 16 gb will haunt Apple in the long run.

Again with the "this would never happen on Steve's watch" … except it did. People were paying a$100 premium to go from 16gb to 32gb. And Apple continued to set sales records with each new model. So, there's that.

 

[Newtons Apple]

people continue to buy 16GB because they THINK they don't want more. It can be seen in so many industries, across many different cultures and different people. Let me explain.

If a User has a 16 GB phone. He HAS to make it work right? When the same user gets a 32+ GB phone he usually surpasses 16 GB not long after.

For me, I had a phone with only 16 GB and a meh camera. I got by with 16 GB for 2 years with zero issues. I had the thought process that I don't really take much pics and I don't need much storage. After I got a 32 GB phone with a great camera. Now I take tons of pics and used more than 16GB in the first 2 weeks of ownership.

Now could I go back to 16 GB? Hell no. However if someone has been using 16 GB up until this day then they don't really see a need or want for 32+ GB until they have experienced it.

Another example is large phones. I use to think persons with Samsung Notes were crazy to have such a huge phone. Why would I want such a big screen? 5 inches is the max I would ever want. Then I got a 5.7 inch screen phone and would never go back to a small screen phone.

Think of something you use to do or have in the past that you thought you would never need to upgrade or need more. Bet you can't go back now. Could be tube TVs, 720p res laptops/tvs, a car without bluetooth, 30 pin connector, smart watch, tablet, 3.5 inch screen phone, etc.

Note: In no way is this true for all. However I think this is a major reason.
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how would it be a disservice? How does an additional 16 GB affect them in any way? Does it make the phone less functional or something?

The reason is it would cost more and force someone to pay more than what they need.

 

[Blaze4G]

The reason is it would cost more and force someone to pay more than what they need.

Do you think Apple would increase the price from $650 if they bumped the internal memory to 32GB? Highly doubt it.

 

[Newtons Apple]

Do you think Apple would increase the price from $650 if they bumped the internal memory to 32GB? Highly doubt it.

If Apple offered no choice and the lowest price model was 32gb this would all be an unneeded conversation. What the heck is bothering you so much that Apple can offer the lowest priced phone for those who want it. Does it threaten you or what?

 

[Blaze4G]

If Apple offered no choice and the lowest price model was 32gb this would all be an unneeded conversation. What the heck is bothering you so much that Apple can offer the lowest priced phone for those who want it. Does it threaten you or what?

Wait when did a say it bothered me? The thread is titled "the reason why Apple still sells 16GB" and I gave my opinion on why people continue to buy them. So please to highlight where in my post I said it bothered me or affected me in anyway. Did i say I wish they increased it to 32 GB in this thread? No. Did I say it is disrespectful that Apple offered a 16GB model in 2016? No.

Already defending Apple and I wasn't even attacking Apple. Lol! Apple fans, sigh.

 

[umbrokhan]

if Apple keep doing the same old design and same old technology people will jump over the other side of the fence.
and move to Samsung Galaxy S7 Edge.
would have been better if Apple gave they customers edgeless display this year.

 

[eyoungren]

if Apple keep doing the same old design and same old technology people will jump over the other side of the fence.
and move to Samsung Galaxy S7 Edge.
would have been better if Apple gave they customers edgeless display this year.

And then they will experience Android and come right back.

Plenty of threads here about that boomerang effect. Plenty of threads here about people complaining about old tech and Apple not offering new technology. Plenty of threads here about all the "new" stuff manufacturers other than Apple offer but that nobody used.

Apple itself has said that it's not always the first to offer new technology - but it's the best when it does offer it.

Really, Apple is in no danger at the moment of going bankrupt because they don't have a 12 bazillion MP camera or DNA reading technology.

 

[geoff5093]

And then they will experience Android and come right back.

Plenty of threads here about that boomerang effect. Plenty of threads here about people complaining about old tech and Apple not offering new technology. Plenty of threads here about all the "new" stuff manufacturers other than Apple offer but that nobody used.

Apple itself has said that it's not always the first to offer new technology - but it's the best when it does offer it.

Really, Apple is in no danger at the moment of going bankrupt because they don't have a 12 bazillion MP camera or DNA reading technology.

What you don't hear about are the many times more iOS users that move to Android and simply don't come back to MacRumors to tell everyone. It's mostly just ones that decided to come back.

 

[eyoungren]

What you don't hear about are the many times more iOS users that move to Android and simply don't come back to MacRumors to tell everyone. It's mostly just ones that decided to come back.

That's true.

But I imagine it's the same on Android forums where the people who post here about finally getting an Apple device don't go back to those places and tell those members about it.

I don't think any of that however has had any significant impact on Apple's bottom line.

 

[KALLT]

One benefit of the lower-storage iPhones is that Apple seems to be taking it into account for iOS too. iOS 9 came with plenty of storage optimisations precisely because of that barrier. iOS updates are now just a fraction of what they used to be, app sizes are slimmed down, apps can be split into chunks and loaded later and so forth. I wonder whether we would have seen these improvements were Apple not so keen on limiting the base storage. The same is true with the RAM and battery. The RAM is comparatively low and the batteries are small. But because of this, Apple really focusses on energy efficiency and excellent memory management, because they have to.

This is not to be understood as an excuse, but just an observation.

 

[maxsix]

Sounds to me like he just bought the cheapest price available. As do most consumers...

As an elitist corporation, Apple's good at targeting buyers with money. Even they like a bargain.

 

[geoff5093]

That's true.

But I imagine it's the same on Android forums where the people who post here about finally getting an Apple device don't go back to those places and tell those members about it.

I don't think any of that however has had any significant impact on Apple's bottom line.

Apple will find though that if they continue to rip off customers, like not raising the base storage price on a $650 and $750 phone, that eventually more people will leave iOS than would be moving to iOS from other platforms.

Android and Windows phones have had lots of much cheaper alternatives over the past few years, you can get a phone with flagship level specs and performance for $400-$500 easily. The fact that the $400 iPhone SE has the same base storage as a $750 iPhone 6s+ is just pure greed.

 

[umbrokhan]

some people won't move because they friend and family has an iphone, faceTime, iMessage.
some people who are integrated into the Apple Eco system, will not switch to the Galaxy S7 Edge.
and you will lose all your seamless integration that you have taken for granted.

 

[Channan]

Actually it costs about $5 more for Apple to put 32GB instead of 16Gb. Remember that we had 16Gb back in 2007/2008, price of SSD manufacturing has gone down exponentially to extremely low cost after 9 years. I'd gladly pay $655 instead of $650 for a 32gb flagship iphone, wouldn't you? And Apple wouldn't lose anything

Check out some teardown estimates:
iPhone SE manufacturing difference from 16GB to 64GB is $10, but Apple charges $100 more:
http://www.recode.net/2016/4/4/11585836/teardown-apples-iphone-se

In this estimate it says the difference in manufacturing cost between iPhone 6s 16GB and 64GB is $17:
http://www.ibtimes.com/iphone-6s-pl...ke-iphone-6-plus-ihs-teardown-reveals-2120667

Now, I know price teardown of Apple products don't include R&D costs and other factors, but we are talking about NAND (SSD) cost, a standard component.

One last thing, it's standard in the industry to ship 32GB devices nowadays, yet Apple stays stuck at 16GB. It's clear Apple is aiming at higher profit margins, beating record-high profits last year. Now, it's nice and cool for Apple to pursue record-high profits, but I think there should be a balance between milking the userbase to no end, and giving away a bit more than usual, and I think Apple is currently unbalanced, and I think the market is finally reacting to this.

You missed my point. It would cost Apple because people like me wouldn't pay an extra $100 for more storage if 32GB was the base storage. I bought a 64GB iPhone SE and only saved a ton of videos on it because I had so much leftover space. I don't even watch videos on it. Without them, I'd still have 35-40GB left on my iPhone.

There are plenty of other people out there who, like me, need more than 16GB but not more than 32GB, and Apple knows this.

 

[trifid]

You missed my point. It would cost Apple because people like me wouldn't pay an extra $100 for more storage if 32GB was the base storage. I bought a 64GB iPhone SE and only saved a ton of videos on it because I had so much leftover space. I don't even watch videos on it. Without them, I'd still have 35-40GB left on my iPhone.

There are plenty of other people out there who, like me, need more than 16GB but not more than 32GB, and Apple knows this.

People aren't stupid and won't support Apple's $100 milking scheme forever and/or will build up distrust/dissatisfaction which will hurt Apple in the long term, that's my point. And look at the market right now, it seems to be reacting to Apple's abuse and neglect.

 

[smacrumon]

Apple's deliberate release of new crippled hardware, a large megapixel camera and low storage combination, is an utter fraud and a reflection of the sick attitude Apple executives have towards all customers new and loyal.
[doublepost=1463273120][/doublepost]The issue here is why do customers even need to "think" about storage at all? It should just all work. Apple needs to resolve this urgently.

 

[Channan]

People aren't stupid and won't support Apple's $100 milking scheme forever and/or will build up distrust/dissatisfaction which will hurt Apple in the long term, that's my point. And look at the market right now, it seems to be reacting to Apple's abuse and neglect.

Yeah, eventually they will have to, but the reason they haven't so far is to milk as much money from people as long as possible.

 

[joeblow7777]

Keeping 16 GB base model for iPhone 7 will cause tremendous loss of goodwill for Apple. See the amount of hate on iPhone 7 rumour articles. Apple has already lost their sheen.
.

But of course, what you see in comment sections and message boards represents a small sample of the people buying iPhones. For all the hate, it's still going to sell tens of millions in the first weekend.