It was estimated last year that Apple takes home a stunning 94% of all profits made by all players across the entire smartphone industry. Its gross margin across all products hovers around the 40% mark. Apple knows how to make money from its products.
One way it does this is to sell its iPhones with a base level of flash storage that is just barely usable, and charge a hefty markup for higher storage tiers. Sure, you can buy a shiny new iPhone 6s for $649, but that gets you a measly 16GB. It’ll cost you another hundred bucks to get a more reasonable 64GB and another $100 again if you want to max out at 128GB.
I’ve touched on this topic before as part of a more general piece about whether Apple was getting a little too greedy, but it seems to me that when the company is supplying iPhones with 4K camcorders built into them, this is the point at which a 16GB tier becomes completely indefensible …
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