IHS: 64GB model iPhone only costs Apple $12 more than base 16GB model

According to market research firm IHS, it only costs Apple $12 more to build a 64GB model iPhone compared to a base 16GB model.

The company charges an extra $100 for the larger capacity model, suggesting a much heftier profit if consumers opt for the 64GB version.

As most iPhone fans know, the 16GB model, after taking into account Apple's operating system and a large bit of useless native apps, is not really 16GB and a few apps and pictures/videos can fill up the phone in a heartbeat. Apple knows this, as well, and has exploited the strategy for some time, says IHS, adding that Apple "has long used this product strategy to improve their overall blended gross margins on their iPhone line."

Source:
TechInsider

Written by: Andre Yoskowitz @ 28 Mar 2016 21:44

Jemborg

Perfect... just perfect.

Its a lot easier being righteous than right.

DSE VZ300-
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29.3.2016 02:12 #1

guy8689

Why is this surprising? WE already know that storage is cheap. It's not like Apple is the only one doing it, look at all the SSD manufacturers.

That being said, I don't see why the 64GB is not the base model, or even better, have only one model with 256GB of storage and call it a day. But money rules everything nowadays. Companies want more money, and we can't blame them, we would do the same. We all want more money.

29.3.2016 09:51 #2

hearme0

Duh! Anyone that doesn't proactively know this is a goof!

Example of another real-world price gauge, the MS Surface Book lineup! Surface Book Pro 256 is 500 less than the 512GB.

U tryin' to tell me it cost 500 extra to bump to the next available increase in storage? NO!

Companies that do this have no integrity. Apple is among the worst offenders.

29.3.2016 16:55 #3

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