
Apple Refuses to Kill the 16GB iPhone - kelseydh
http://blogs.wsj.com/personal-technology/2015/09/09/it-lives-another-year-apple-refuses-to-kill-the-16gb-iphone/
======
sigmar
The 64 and 128 GB models subsidize the cheaper 16 GB in a way. Even though 16
GB still has a huge profit margin.

It will be interesting once people start doing teardowns, and we can see if
apple has reduced or increased their margins

~~~
kelseydh
Given memory is so cheap it's the other way around. The 64GB and 128GB models
are what allow Apple to enjoy such healthy margins on smartphone sales
compared to other competitors.

Keeping the base model at 16GB is going to cause many to shell out an extra
$100 to Apple for the 64GB. It's anti-consumer, but this move is going to make
them boatloads of more money as the additional $100 is nearly completely extra
profit for Apple.

It's a shameless money grabbing move they deserve condemnation for, but they
will get away with it any way.

------
natch
People are voting with their wallets. As long as people keep buying them, and
they work great, then we'll be stuck with them.

~~~
kelseydh
The problem is that 16GB is seriously no longer enough local storage given the
phone's 4k video and mini-video photos.

There's no doubt that Apple's greed here will significantly boost their short
term profits, but in this case they are doing so at the expense of potentially
long term pain, especially as consumers grow dissatisfied and frustrated with
their iPhone's memory contraints.

~~~
natch
OK I think you're right because in the end it will make the device (and the
brand) look bad. And thinking about it some more, it also hurts users who
don't have a say in which phone they get.

