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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
by sigmar 11y ago
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 11y agoGiven 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.