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In recent years, Apple doubled iPhone storage levels while keeping prices the same: the middle tier 32gb became 64, and the high end 64gb tier became 128 -- how
by skygazer 11y ago
In recent years, Apple doubled iPhone storage levels while keeping prices the same: the middle tier 32gb became 64, and the high end 64gb tier became 128 -- however, the 16gb remained untouched. There is no longer a 32gb offering. I think this is telling.
If Apple had doubled the 16gb to 32, then many of the prior middle tier purchasers would now be drawn to Apple's cheapest tier, and Apple would lose that revenue, $100 per unit. At the same time, those that feel stifled by the 16 have more incentive to upgrade to the 64, at the same price as the prior 32.
Why is this still the case, years later? I think the issue is that 32gb remains the sweetspot for more than half of the potential customers, and if they offered it, their low end product will cannibalize their mid tier sales and cost them billions.