So why improve anything at all? Everything eats into profit, more RAM, faster processor, bigger screen, etc, etc, etc. That argument makes zero sense.
Exactly. Why did Air 2 get 2GB RAM? Why did Apple decide to make most of their software free? Isn't that eating into profits? Or does 2GB ram cost the same as 1GB? If that's the case why don't the current iPhone 6's have 2GB RAM?
Apparently it does since the iPhone still starts at 16GB.
I don't get why you all think you are smarter than the exectutives at Apple who deal with this stuff everyday. To you it may seem like a simple solution to start the iPhone at 32GB, but you have no IDEA what the consequences of such a move would have on Apple's bottom line.
Eventually we will get 32GB devices, once Apple is convinced they've upsold most people to 64GB and are fairly confident those people won't downgrade to 32GB. It's all about keeping those ASPs high to please Wall Street.
That's partly true. But Apple makes good profits. $18 billion is a record for anyone, but given Apple's size, it's not excessive either. Their net is about 21%, which is very good, but again, not excessive.
People think that they can drop their prices easily. They really can't. If they drop prices by 10%, that would drop their net more than 10%, perhaps 12%. Then their margins would be just about 10%. For technology companies that are doing well, that's not great. They would have to stop offering free services such as iWork, etc. it would become a different company.
IMO- Mixing in 'percentages' for perceived expectations can lead to unrealistic/unfair expectations. 'Oh they made 1 gazillion quadtrillion dollars. oh yea well, but it was on 1%(only a buhzillion dollars) higher than last year... they are doomed. No pudding for you--- their operating margin went from 1% to 2% an 100% increase!' Share holder value --- eye of the beholder defined term if there ever was one.
Yes they are. The 64GB model is now $100 cheaper than the previous ones.
No. it's not. 64GB now is for the mid tier version which still costs the same as previous mid tier version. and 64GB today costs the same $ for BOM as 32GB last year. Your example is wrong in every level.
Take the revelation that the world's largest SIM supplier - Gemalto - was hacked by NSA and GCHQ (and had encryption keys stolen). Add in Tim Cook's hardline stance against providing back doors into Apple devices.
IMO, it's a given that the Apple SIM will be shipped with all phones. I wouldn't be surprised if they hard wired it in so you couldn't swap it out...
No. it's not. 64GB now is for the mid tier version which still costs the same as previous mid tier version. and 64GB today costs the same $ for BOM as 32GB last year. Your example is wrong in every level.
How is it wrong? The previous 64GB was $200 more than the base 16GB model, now it's only $100 more. Is that really too hard to understand?
Take the revelation that the world's largest SIM supplier - Gemalto - was hacked by NSA and GCHQ (and had encryption keys stolen). Add in Tim Cook's hardline stance against providing back doors into Apple devices.
IMO, it's a given that the Apple SIM will be shipped with all phones. I wouldn't be surprised if they hard wired it in so you couldn't swap it out...
Let's pray that Apple takes a leaf out of Samsung's playbook and makes 32GB the base storage capacity, so as to avoid a repeat of UpdateGate.
Why? 16GB is more than enough for corporate users and those that stream most of their content over the internet. Of course, for me, I went with the 128GB since I have lousy internet and cannot stream anything where I live, so I have several thousand pictures, a few thousand songs, and many movies on my 6 plus. It really is tiring seeing all of the people that know more than Apple does. How do YOU know that the 16GB model isn't the best selling model WORLD WIDE? Please provide us with your insight and expert knowledge that says Apple isn't selling these.
Yes they are. The 64GB model is now $100 cheaper than the previous ones.
No. it's not. 64GB now is for the mid tier version which still costs the same as previous mid tier version. and 64GB today costs the same $ for BOM as 32GB last year. Your example is wrong in every level.
No, he's right.
The 64GB iPhone 6 is $100 cheaper than the 64GB iPhone 5s from last year.
Apple knows what they are doing. If the customer is so stupid than maybe they are better off buying an Android. Just do a simple search on Google or go to the Apple store and you would know iTunes software upgrade is the way to go if you have a 16GB phone. Even my grandma knows that.
I see no problem. Just a bunch of idiots yelling on twitter. ignore them.
Quote:
Originally Posted by dasanman69
How is it wrong? The previous 64GB was $200 more than the base 16GB model, now it's only $100 more. Is that really too hard to understand?
Dude, you really need to get your head out of storage capacity. It's a fking simple margin: cost of BOM (Build of Material). It doesn't matter 64GB or 128GB, it's still mid-tier and the cost of BOM should be the same to yield the same margin. So, you compare mid-tier with mid-tier if you want to do a cross year comparison. Each year, the specs for each tier will be better than previous year (CPU, GPU, RAM or Storage).
Dude, you really need to get your head out of storage capacity. It's a fking simple margin: cost of BOM (Build of Material). It doesn't matter 64GB or 128GB, it's still mid-tier and the cost of BOM should be the same to yield the same margin. So, you compare mid-tier with mid-tier if you want to do a cross year comparison. Each year, the specs for each tier will be better than previous year (CPU, GPU, RAM or Storage).
According to [@]sog35[/@] It does matter. I'm saying it doesn't.
Last year Tim Cook told the WSJD that iPhone would be Apple's main revenue driver for the next 5 years.
Five years coincidentally is the estimated timetable for the Apple Car, with the entry model having a 64 km range while the top model offering 1024 km range. /s
Apple knows what they are doing. If the customer is so stupid than maybe they are better off buying an Android. Just do a simple search on Google or go to the Apple store and you would know iTunes software upgrade is the way to go if you have a 16GB phone. Even my grandma knows that.
I see no problem. Just a bunch of idiots yelling on twitter. ignore them.
Quote:
Originally Posted by dasanman69
How is it wrong? The previous 64GB was $200 more than the base 16GB model, now it's only $100 more. Is that really too hard to understand?
Dude, you really need to get your head out of storage capacity. It's a fking simple margin: cost of BOM (Build of Material). It doesn't matter 64GB or 128GB, it's still mid-tier and the cost of BOM should be the same to yield the same margin. So, you compare mid-tier with mid-tier if you want to do a cross year comparison. Each year, the specs for each tier will be better than previous year (CPU, GPU, RAM or Storage).
That might be the case if all things were equal, but they're not.
I think that for a lot of people, they don't care much about the other specs of the iPhone, as all of them are more than capable enough, so storage becomes a significant differentiator. As long as people still feel the need for greater capacity, Apple will still be able to upsell, but if it becomes less of an issue, Apple may start to see people moving down the tiers. In fact, I think It’s already happened, in that fewer people will be on the high tier and more on the mid tier. This year, Apple has probably more than made up for that by jumping lots from the bottom tier to the middle tier, but next year and the year after will be harder, as I think that many will find 64GB sufficient for quite some time, which is liable to lower ASPs, all other things being equal. That may be partly why Apple is trying to differentiate more both with the size—5.5" and 4.7"—and with the better camera on the 6 Plus.
So the 6, and to a lesser extent, the 6s, are likely to be juicy for the ASPs. The 7, I think, will be more of a struggle.
Because your video might be played on the big screen attached to your Apple TV.
Uh...then why do you still need 4K resolution on 5" screen? I mean the screen resolution, not video resolution and I think that's what Sog35 meant. You can shoot 4K video, but on 5" screen, it doesn't matter if it's 1080p, 2k or 4k since your eyes won't be able to distinguish the difference.
Uh...then why do you still need 4K resolution on 5" screen? I mean the screen resolution, not video resolution and I think that's what Sog35 meant. You can shoot 4K video, but on 5" screen, it doesn't matter if it's 1080p, 2k or 4k since your eyes won't be able to distinguish the difference.
You probably don't need a 4K small screen. The OP was referring to PRODUCING 4K content on an iDevice and having enough storage on board to contain the 4K content.
stop being cheap. Just pay the extra $99 for 64GB.
The problem is or was that you aren't paying $99 for 64 GB you paid $99 for 32 GB of extra Flash. With the latest line up things are a bit different but you get the idea.
.
If you keep your phone for 2 years that 13 cents a day. If you can't afford that then you probably should buy a Xiaomi.
A ripoff is a ripoff no matter how wealthy you are.
Charging $99 for 64GB and $199 for 128GB allows Apple to charge less for the 16GB model.
Not really, in the end the market determines value. It would actually be interesting to know what Apples mix is with a 16GB unit still in the mix.
I don't think there'll be such move: 16GB-32GB ever. Apple want you to buy 64GB version by making it look cheaper to go from 16GB-64GB. Making 32GB will reduce their margin because people will fall back to 32GB instead of 64GB and that's the last thing they want to do.
These days even 32 GB in an iPhone is nothing. To solve your marketing problem all they need to do is move the second model to 128 GB and the upper tier to 256 GB. As for cost, the 16GB chip in iPhone goes for less than $9. Considering Appplesvolumes probably a lot less.
2GB RAM is no brainer. Now all we need is bump 16GB to 32GB. If Apple is all about delivering the best products and user experience that should be a no brainer too.
And both will happen when the time is right, but your incessant mentioning that 16GB isn't enough for you along with your failure to mention your entitlement toward how much capacity you should be allotted at the lowest tier is fucking annoying. There are plenty of people fine with 16GB so your entire basis of "it's not enough for anyone" just comes across as trollish.
Comments
Exactly. Why did Air 2 get 2GB RAM? Why did Apple decide to make most of their software free? Isn't that eating into profits? Or does 2GB ram cost the same as 1GB? If that's the case why don't the current iPhone 6's have 2GB RAM?
Eventually we will get 32GB devices, once Apple is convinced they've upsold most people to 64GB and are fairly confident those people won't downgrade to 32GB. It's all about keeping those ASPs high to please Wall Street.
That's partly true. But Apple makes good profits. $18 billion is a record for anyone, but given Apple's size, it's not excessive either. Their net is about 21%, which is very good, but again, not excessive.
People think that they can drop their prices easily. They really can't. If they drop prices by 10%, that would drop their net more than 10%, perhaps 12%. Then their margins would be just about 10%. For technology companies that are doing well, that's not great. They would have to stop offering free services such as iWork, etc. it would become a different company.
IMO- Mixing in 'percentages' for perceived expectations can lead to unrealistic/unfair expectations. 'Oh they made 1 gazillion quadtrillion dollars. oh yea well, but it was on 1%(only a buhzillion dollars) higher than last year... they are doomed. No pudding for you--- their operating margin went from 1% to 2% an 100% increase!' Share holder value --- eye of the beholder defined term if there ever was one.
Yes they are. The 64GB model is now $100 cheaper than the previous ones.
No. it's not. 64GB now is for the mid tier version which still costs the same as previous mid tier version. and 64GB today costs the same $ for BOM as 32GB last year. Your example is wrong in every level.
Take the revelation that the world's largest SIM supplier - Gemalto - was hacked by NSA and GCHQ (and had encryption keys stolen). Add in Tim Cook's hardline stance against providing back doors into Apple devices.
IMO, it's a given that the Apple SIM will be shipped with all phones. I wouldn't be surprised if they hard wired it in so you couldn't swap it out...
How is it wrong? The previous 64GB was $200 more than the base 16GB model, now it's only $100 more. Is that really too hard to understand?
There's zero proof that hack ever happened.
There's zero proof that hack ever happened.
https://firstlook.org/theintercept/2015/02/19/great-sim-heist
Granted, no telling if the referenced slide is valid, but I lend it credence.
Let's pray that Apple takes a leaf out of Samsung's playbook and makes 32GB the base storage capacity, so as to avoid a repeat of UpdateGate.
Why? 16GB is more than enough for corporate users and those that stream most of their content over the internet. Of course, for me, I went with the 128GB since I have lousy internet and cannot stream anything where I live, so I have several thousand pictures, a few thousand songs, and many movies on my 6 plus. It really is tiring seeing all of the people that know more than Apple does. How do YOU know that the 16GB model isn't the best selling model WORLD WIDE? Please provide us with your insight and expert knowledge that says Apple isn't selling these.
Get back to me when you've read my post.
Yes they are. The 64GB model is now $100 cheaper than the previous ones.
No. it's not. 64GB now is for the mid tier version which still costs the same as previous mid tier version. and 64GB today costs the same $ for BOM as 32GB last year. Your example is wrong in every level.
No, he's right.
The 64GB iPhone 6 is $100 cheaper than the 64GB iPhone 5s from last year.
People grumble about cute puppies on twitter.
Apple knows what they are doing. If the customer is so stupid than maybe they are better off buying an Android. Just do a simple search on Google or go to the Apple store and you would know iTunes software upgrade is the way to go if you have a 16GB phone. Even my grandma knows that.
iOS8 adoption rate is already up to 75-80%
http://www.macrumors.com/2015/02/03/ios-8-adoption-rate-hits-72-percent/
I see no problem. Just a bunch of idiots yelling on twitter. ignore them.
How is it wrong? The previous 64GB was $200 more than the base 16GB model, now it's only $100 more. Is that really too hard to understand?
Dude, you really need to get your head out of storage capacity. It's a fking simple margin: cost of BOM (Build of Material). It doesn't matter 64GB or 128GB, it's still mid-tier and the cost of BOM should be the same to yield the same margin. So, you compare mid-tier with mid-tier if you want to do a cross year comparison. Each year, the specs for each tier will be better than previous year (CPU, GPU, RAM or Storage).
According to [@]sog35[/@] It does matter. I'm saying it doesn't.
Five years coincidentally is the estimated timetable for the Apple Car, with the entry model having a 64 km range while the top model offering 1024 km range. /s
People grumble about cute puppies on twitter.
Apple knows what they are doing. If the customer is so stupid than maybe they are better off buying an Android. Just do a simple search on Google or go to the Apple store and you would know iTunes software upgrade is the way to go if you have a 16GB phone. Even my grandma knows that.
iOS8 adoption rate is already up to 75-80%
http://www.macrumors.com/2015/02/03/ios-8-adoption-rate-hits-72-percent/
I see no problem. Just a bunch of idiots yelling on twitter. ignore them.
How is it wrong? The previous 64GB was $200 more than the base 16GB model, now it's only $100 more. Is that really too hard to understand?
Dude, you really need to get your head out of storage capacity. It's a fking simple margin: cost of BOM (Build of Material). It doesn't matter 64GB or 128GB, it's still mid-tier and the cost of BOM should be the same to yield the same margin. So, you compare mid-tier with mid-tier if you want to do a cross year comparison. Each year, the specs for each tier will be better than previous year (CPU, GPU, RAM or Storage).
That might be the case if all things were equal, but they're not.
I think that for a lot of people, they don't care much about the other specs of the iPhone, as all of them are more than capable enough, so storage becomes a significant differentiator. As long as people still feel the need for greater capacity, Apple will still be able to upsell, but if it becomes less of an issue, Apple may start to see people moving down the tiers. In fact, I think It’s already happened, in that fewer people will be on the high tier and more on the mid tier. This year, Apple has probably more than made up for that by jumping lots from the bottom tier to the middle tier, but next year and the year after will be harder, as I think that many will find 64GB sufficient for quite some time, which is liable to lower ASPs, all other things being equal. That may be partly why Apple is trying to differentiate more both with the size—5.5" and 4.7"—and with the better camera on the 6 Plus.
So the 6, and to a lesser extent, the 6s, are likely to be juicy for the ASPs. The 7, I think, will be more of a struggle.
why the hell would you need 4k resolution on a 5 inch device. pure stupidity
Because your video might be played on the big screen attached to your Apple TV.
Because your video might be played on the big screen attached to your Apple TV.
Uh...then why do you still need 4K resolution on 5" screen? I mean the screen resolution, not video resolution and I think that's what Sog35 meant. You can shoot 4K video, but on 5" screen, it doesn't matter if it's 1080p, 2k or 4k since your eyes won't be able to distinguish the difference.
Uh...then why do you still need 4K resolution on 5" screen? I mean the screen resolution, not video resolution and I think that's what Sog35 meant. You can shoot 4K video, but on 5" screen, it doesn't matter if it's 1080p, 2k or 4k since your eyes won't be able to distinguish the difference.
You probably don't need a 4K small screen. The OP was referring to PRODUCING 4K content on an iDevice and having enough storage on board to contain the 4K content.
Not really, in the end the market determines value. It would actually be interesting to know what Apples mix is with a 16GB unit still in the mix.
These days even 32 GB in an iPhone is nothing. To solve your marketing problem all they need to do is move the second model to 128 GB and the upper tier to 256 GB. As for cost, the 16GB chip in iPhone goes for less than $9. Considering Appplesvolumes probably a lot less.
And both will happen when the time is right, but your incessant mentioning that 16GB isn't enough for you along with your failure to mention your entitlement toward how much capacity you should be allotted at the lowest tier is fucking annoying. There are plenty of people fine with 16GB so your entire basis of "it's not enough for anyone" just comes across as trollish.