“Apple’s decision to keep the entry-level storage tier at 16GB for the iPhone 6 and 6 Plus, despite doubling the other capacities to 64GB and 128GB, continues to raise eyebrows,” Neil Cybart writes for Above Avalon. “By not doubling the entry-level storage tier to 32GB, I estimate Apple will save $3 billion of profit in 2015.”
“I suspect Apple’s bigger concern was the long-term balance between customer’s storages needs and maintaining the iPhone’s aspirational brand,” Cybart writes. “Apple’s near-term motive behind keeping the 16GB capacity option is pretty clear: get people to buy the 64GB option. From Apple’s point of view, consumers would benefit as Apple didn’t raise the price of the middle-tier or upper-tier iPhone storage options, despite doubling storage to 64GB and 128GB, respectively.”
“I suspect the issue is a bit more complicated and involves setting precedence for future iPhone revisions,” Cybart writes. “I estimate that doubling the iPhone’s lowest storage capacity tier from 16GB to 32GB would lower Apple’s profit by $3 billion.”
Read more in the full article – recommended – here.
[Thanks to MacDailyNews Reader “Dan K.” for the heads up.]