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Apple’s new $50 iPod pricing tiers likely won’t make it iPhones and iPads

Yesterday, “Apple made a significant change to the iPod touch lineup,” Mike Beasley writes for 9to5Mac. “Aside from a few small hardware improvements to the lowest-end model, the company has — for the first time — started to close the price gap between storage tiers.”

“Is this a sign that Apple is ready to give in and drop the ridiculous $100 pricing tiers on future big ticket premium devices when the actual Flash storage and controllers only cost Apple a few bucks?” Beasley wonders. “Or will we continue to see a $100 price gap between iPhones when the next-gen model is revealed this fall?”

“Apple has now admitted that there is no real need for the $100 gap other than to pad profits. There’s no technical reason that doubling the storage capacity of an iPhone should cost $100, and Apple, one could argue, is now willing to concede the issue,” Beasley writes. “That’s a fair point, to an extent, but let’s be realistic. No one has ever truly believed that the additional capacity costs $100. If the extra storage cost that much, wouldn’t the jump from 32 GB to 64 GB cost twice as much as the jump from 16 to 32? In fact, the additional storage costs Apple somewhere in the range of $5-10… It’s possible that Apple will keep the $100 gap on the iPhone line for several reasons.”

Read more in the full article here.

Related articles:
Apple slashes iPod touch prices, launches new 16GB model – June 26, 2014
Apple delivers iSight camera, multiple colors to most affordable iPod touch model – June 26, 2014

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