The next-gen “iPhone 13” models are virtually guaranteed to put Apple’s secret weapon into action, as they’ll feature better cameras and faster Apple-designed processors than their predecessors.
For all the technological wizardry, camera and chip improvements can seem a little uninspiring. The real magic is their effect on Apple’s earnings. Because… the chip and camera improvements bring a dual benefit to the Cupertino-based company: Not only do consumers pay a premium for the new features, they also usually end up needing more storage to make the most of those features. And storage, it turns out, is an unbelievable money-printing machine. In fact, it might even be Apple’s secret weapon.
Alongside other camera upgrades, the handsets will include a higher-quality video format called ProRes when they’re released in the next few weeks, Bloomberg News reported on Tuesday, as well as more chip updates.
With every improvement in image quality comes a commensurate increase in storage requirements. The new photo format that Apple added to the iPhone last year, branded ProRaw, is as much as 12 times larger than the standard JPEG. Bigger video files will exacerbate the trend.
Consumers’ need for more storage is enormously profitable. Where it costs the consumer $100 to add 128 gigabytes of storage, Apple is unlikely to pay more than $20 for the same chip. If you’d prefer to store the data remotely, Apple’s iCloud offering enjoys similar profit margins. Besides, those who have already made the choice to opt for a $1,099 iPhone 12 Pro Max may be less concerned ab
MacDailyNews Take: We don’t care that Apple’s “secret weapon” is an “unbelievable money-printing machine” (well, as shareholders, we do) just bring on the flagship 1TB iPhone 13 Pro Max!
Although said to be a money-printing machine, Apple’s value always remains in question. Apple’s growth seems to be limited as seen by many analysts.
I hear that comment for 20 years now and AAPL didn’t stop growing 😜
I’ve owned AAPL for at least fifteen years and carefully followed it for about five more. In all that time, I can’t remember any occasion when analysts were not insisting that Apple’s growth potential was limited. Meanwhile in the real world, AAPL and the company have grown in a spectacular manner.
Yep, “The Law of Large Numbers” has been a dour forecast against growth that AAPL has been eating for years.
AAPL has been, amazingly, enjoying the meal for years and proving wrong the dour.
“Overcharging for ram” is a money-printing machine. Sure. When people get frustrated enough, they start doing legislative things.