CIRP is out with a new report today focused on the sales patterns of iPhone buyers when it comes to storage tiers. They highlight how storage tiers have become a major way for Apple to increase its profit line for each new iPhone sold, as the iPhone’s margins get increasingly better when storage is upgraded.
According to CIRP’s findings, almost half of iPhone buyers opt to upgrade the storage on their device. And this trend skews even higher, reaching over 50%, when considering the iPhone 15 lineup in isolation.
Storage upgrade behavior varies by iPhone model
Last week CIRP reported that the iPhone 15 lineup is lagging behind sales of its predecessor. Today, however, its report was all about understanding storage upgrade behavior.
Storage upgrades vary by model. Customers buying newer, more expensive models, such as the iPhone 15 models introduced in September 2023, upgrade storage at a greater rate than customers buying older, cheaper models. Over half of iPhone 15 model buyers upgrade storage, compared to under 40% for the year-old iPhone 14 models and just over and under 30% of iPhone 13 and 12 buyers.
This breakdown makes a lot of sense, since buyers opting for older iPhones are likely more cost-conscious and thus less inclined to shell out for a higher storage tier. Customers buying the newest and thus highest-priced models, however, don’t mind paying a bit more for additional storage.
The same trend is reflected even within the full iPhone 15 lineup as you break it down into Pro and non-Pro models. 54% of customers buying the iPhone 15 Pro and Pro Max will choose a higher storage tier, compared to only 36% of iPhone 15 and 15 Plus buyers.
That’s a significant difference that’s even more remarkable when considering that Pro models already start with double the storage of their non-Pro equivalents.
9to5Mac’s Take
Apple has even more data regarding consumer behavior when it comes to iPhone purchases, but CIRP’s report provides a helpful way to understand a key component of what the company’s working with. It must be challenging to strike a perfect balance between offering base storage options that are adequate for many users, while also offering enticing upgrade tiers.
My biggest takeaway from this report: Apple knows that buyers of its most expensive iPhones will happily fork over more money for storage.
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