
Apple's 16GB iPhone 6S is a serious strategic mistake - lighthawk
http://www.vox.com/2015/9/11/9311203/apple-16gb-iphone6s
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Someone
_" A 64GB flash storage chip is more expensive than a 16GB flash chip, but
it's not anywhere near $100 more expensive, so pushing people up the chain
increases not just revenue but profit margins. [...] This highlights the fact
that the margin-boosting potential of the 16GB iPhone 6S doesn't serve any
actual purpose."_

That's not the strongest logic. If the 64GB one has higher margins, adding a
16GB option gives buyers the opportunity to go for a lower margin product.

I think the reason the 16 GB version exists is to give money-constrained
buyers an option to buy an iPhone without giving less money-constrained, but
money-conscious, buyers a reason to also go for the cheaper model.

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corysama
It is a common pricing tactic to have a premium product that no one buys
because it makes the mid-range product seem more reasonable vs settling for
the low-end.

This could be same thing in reverse. By having a low-end that is so low, it
sets the expectation floor so low that the others seem like reasonable
upgrades even though they are actually low/mid-range implementations at
mid/high-end prices.

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shokk
16GB is very appealing to people who do not use the app store at all. A number
of people just use the iPhone as a (gasp!) phone with just calendar and
contacts and a bit of email. For such a small segment, that makes the 16GB a
logical loss leader to get people who would not ordinarily think of getting an
iPhone and who then might go for the 64GB model a year later.

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chmaynard
The entry-level 16GB model is still practical if you rely on cloud services
for the storage and retrieval of media files. 16GB is still enough room for
iOS, bundled apps, and a moderate number of third-party apps. That said, I
think it's likely that the 2016 iPhone will start at 32GB.

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mtgx
What about RAM? Please don't tell me the iPhone 6S still comes with only 1GB
of RAM in 2015 for $650+.

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joshstrange
There are a number of articles that have have "confirmed" it has 2GB (I'm VERY
happy about that).

