“Something which hasn’t been mentioned in the weeks since Yahoo announced that it would give a terabyte of storage for free as part of its Flickr photosharing service is: Why has Apple overpriced iCloud so much?” Eric Jackson writes for Forbes.
“Here is an iCloud refresher: You get the first 5 GB of storage free; The next 10 GB (for 15 GB total) costs $20/year; 20 additional GB (for 25 GB total) costs $40/year; 50 additional GB (for 55 GB total) costs $100/year,” Jackson writes. “That might have been a great deal for storage a year ago when iCloud was first rolled out… Yahoo! is giving you 1 terabyte of storage for free. That’s 1,024 GB of free photo space.”
Jackson writes, “If they’re selling iCloud to about 200 million users today at an average of $30 / year, Apple’s getting a $6 billion annual revenue stream. I’m sure Peter Oppenheimer is happy with that high-margin revenue more than covering the costs of their new data centers, but I worry that it’s coming at a hidden cost to Apple.”
Read more in the full article here.