Why Do You Think iPhone 6/+ omitted 32gb?

Pagandeva2000

macrumors member
Original poster
May 3, 2013
40
0
I'm thinking that with the additional screen real estate WHY would 32gb be taken out of their line up?
 

dacreativeguy

macrumors 68020
Jan 27, 2007
2,015
210
Simple. The people who can't afford it to begin with will buy the 16GB just to get an iPhone 6. Everyone else will see the value of an extra 48GB for $100. Apple essentially raised the price of the phone without actually doing it.
 

mantan

macrumors 68000
Nov 2, 2009
1,707
953
DFW
It was a stroke of genius from a moneymaking perspective.

Flash memory prices have dropped so much that there isn't huge cost difference between 16 gig and 64 gig. So when you give the illusion of value (4 times as much gig for only $100) coupled with a 16 gig base model that's too low, you suddenly make the 64 gig your biggest seller. And Apple pockets a cool $90 profit per 64 gig device sold.
 

dacreativeguy

macrumors 68020
Jan 27, 2007
2,015
210
I think one of the tear down sites said that the 16GB card costs apple $8 and the 64GB costs $12. Crazy margins!
 

Traverse

macrumors 604
Mar 11, 2013
6,869
3,101
Here
dat profit margin
This, and only this.

It's almost genius from a business standpoint. By bumping the base to 32GB why happens? People who got more than 16GB would get a $100 cheaper phone and people who will always get the base model will...still get the base model.

By bumping the next tier to 64GB what happens? Some people who thought 16 to 32 was too small to pay for now have a 16 to 64 gap so they are more likely to upgrade. The people that were going to get 16 will still get 16. The people who buy the base model will still buy the base mode which costs Apple less and more people will be willing to upgrade which gives Apple more money.

I personal feel like it goes against that whole "we make the best possible product" thing but aw well.
 

bizack

macrumors 6502a
Apr 21, 2009
586
374
I'm thinking that with the additional screen real estate WHY would 32gb be taken out of their line up?
As others have said, marketing. It's how consumers perceive value.

If Apple offered 32, 64 and 128, there would be too many consumers purchasing the 32GB models. So when you offer 16GB followed by 64GB, the perception is that you're getting *so* much more for your money.

The 16GB model is costing Apple almost nothing as far as flash memory goes. So that helps boost profit margins for the 'cheaper' model that's viewed as a low barrier to entry by most consumers who either a) have never owned an Apple product before or b) consider the $100 price difference worth it or c) don't care/know enough about storage to make a more well informed decision.

There's a room full of evil geniuses at Apple with hundreds of pages of spreadsheets tracking consumer behavior, p&l analysis and how to increase revenue by 0.001% per device.
 

Applefan4

macrumors 6502
May 6, 2013
481
456
There's nothing 'genius' about it - most people see this scummy practice for what it is. They just needed more storage than 16GB and didn't want to switch to android.
 

petecee

macrumors member
Oct 10, 2015
33
14
Derry City, N.Ireland
Extremely beautiful phones created by an extremely greedy company. The iPhone 7 will also start at 16GB. There's WAY too much extra cash at stake by giving more space on the base models.

Offering 4K video recording on a 16GB device is insane. A 30 minute 4K video alone (with no apps installed or music) and you're out of space. Great job Apple!
 

C DM

macrumors Sandy Bridge
Oct 17, 2011
48,530
17,185
The question would actually answer itself if those asking it took a moment to realize that Apple is not just a purveyor of fine products but also a business that exists to make money.
Or even just look at what's already been posted in the thread (or many other similar ones). ;)
 
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