Originally Posted by SolipsismX
Perceived value? So you think the $49 iPod Shuffle makes the iPod Touch look like crap because it starts at $49? What about the 8GB iPhone they sell making the 64GB iPhone look like crap? The perceived value is that you can spend a little more for a lot more storage that could benefit you as a user if you plan to grow into it. The perceived value is that you aren't buying the cheapest model like some cheapskate. There is a reason companies offer the good, better, best tiers instead of just a single best option.
You're still looking at this from the perspective of you and your friends and not from those that don't need to store a lot of data on the device. Again, you can look at the 8GB iPhone 4 now on sale as proof that it 1) is still a viable capacity for Apple, and 2) not something that weakens the iPhone brand. Do people commonly put their songs on tablets over a pocketable device? I certainly don't which is why I have so much room on my iPad.
I did read your response carefully.
There is very little competition in the mp3-player space. Every iPod line and model is golden, even the 160GB Classic at $249. Apple has done their research and has priced each one "correctly" (with a premium). That means the "perceived" values match the prices.
I don't understand what you were trying to do with the iPod comparisons. The $49 2GB Shuffle does not make the Touch look bad. They belong to different lines of the iPod brand. But a $49 500MB Shuffle would make the Shuffle itself look bad. A $249 Classic with 30GB would look bad. That is, compared to Samsung's current (and ugly) mp3 players and their prices.
People may love the Apple brand, but they are also somewhat aware of what the competitors are offering. An 8GB $250 iPad mini would look bad compared to the Nexus 7. We can argue about the benefits of the Apple ecosystem and quality, and we might talk about how even 4GB would be enough for you and me, because all of our music and stuff are on the iPhone anyway. Well, you know what? I think you and I would still consider the iPad mini even if it only had 4GB (only one capacity). But I'm not talking about you and me. I'm also not talking about the people on this board.
Not everyone knows or understands software or even the differences between iOS and Android. Obviously, for you and me, iOS offers much much much more value. But not everyone can appreciate it; they might be uninformed or misinformed. So when they are shopping for a small tablet, they see the iPad mini and Nexus 7. They may not have the time to read 10 online reviews and ask questions on a board. They may not have enough time to test them out in a store. That is when perceived value comes in.
I think 16GB is that threshold where people don't worry about capacity.
When all Android tablets are priced at or below $250 and have 32GB, a $250 iPad mini with 8GB DEFINITELY looks bad. Maybe this audience cannot "perceive" the value of iOS and everything Apple. They are only "perceiving" things through meaningless numbers and misinformation. It also doesn't help if evil salespeople are trying to steer the customer to an Android device just so they can get a higher commission or whatever.
"Good, better, best" is a great system. I do not believe Apple wants their customers to feel like cheapskates just because they bought the base model. Apple values their customers and wants them to feel valued too. Just start the iPad mini with 16GB. Fewer worries from customers, easier sales.
I already gave the reasons on why the 8GB iPhone 4 is doing fine. In that situation, yes, you KNOW that you are a cheapo for getting the "free" iPhone (and accept it). Moreover, that is NOT the "base model" of the iPhone. The base model of the iPhone is the 16GB iPhone 5. The iPhone 4 is the model from two years ago. Given iPhone's publicity and marketing, even regular joes know about the 4S after it and the current iPhone 5. Even my grandma knows.
Since the 8GB iPhone 4 is free from the carriers, this iPhone 4 has a lower "perceived" value. The expectations would be lower. The users won't baby the phone as much. But at the same time, with Apple's iOS magic, even the free iPhone 4 works better than the "newer" Android phones (these users realize this when checking out their peers' Android phones). The iPhone 4 experience even surpasses their lowered expectations. They will probably get the next iPhone too. Damn, Apple is so smart.
My friends are not techies or "power" users, but I would call them "experienced" users. In general, they FEEL 8GB is too little. That is my general thinking too. I hope Tim Cook and Phil Schiller agree.