There’s a certain marketing genius to Apple’s tiered pricing for flash storage on its iPhones and iPads. Since customers can’t add storage via a microSD card later, they have to decide in advance how much storage they need, and many of us are going to err on the side of safety, bumping our purchase up to a higher price-band.
Adding $100 or $200 to the price of an iDevice for maybe $5-10 worth of flash storage/controller capacity is an important source of income for Apple, and one of the reasons its margins are so high. Whatever the company makes on a 16GB device, if it can upsell you to a 32GB or 64GB (or even 128GB, in the case of the iPad), almost all of the premium charged on those beefier models is pure profit.
It’s not money Apple would give up lightly, but I do wonder whether it’s sustainable … Read more