Apple will earn $3 billion because the iPhone 6 starts with a pitiful amount of storage
20 Mar 2015

“What we want to do is make a leapfrog product that is way smarter than any mobile device has ever been, and super-easy to use. This is what iPhone is. OK? So, we're going to reinvent the phone.” (Steve Jobs)

 

Even though Apple’s new iPhone 6 was well acclaimed amongst the Apple fan boys as well as Apple critics, there was one slight problem in it and that was the fact that the entry level IPhone 6 came with a punitive amount of storage (16GB).

 

John Gruber’s iPhone Review

John Gruber who always reviews Apple in a very positive light called this storage amount as “downright punitive”; we all know the amount of storage space applications, videos and photos consume these days.

 

iOS 8 Upgrade and Storage Issues

This fact was well highlighted when iOS 8 was released; people wanted the software upgrade but the update required a large amount of storage space and that created a barrier for people owning small storage iPhones. Software upgrade aside, having a small amount of storage space can limit the amount of productivity on your phone. Even social networking apps require a large space in order to create a proper cache.

 

iPhone 6; small storage equals big profits

But even though the decision to buy an iPhone 6 bearing the storage capacity of 16GB is bad for you; it is good for Apple’s bottom line. Analyst Neil Cybart from the Company Above Avalon did some facts and number punching and estimated that by the end of next year Apple will earn a staggering profit of $3 billion mainly due to this storage issue that iPhone fanatics are facing when considering the 16 GB iPhone Model.

A brief summary of Cybart’s article follows the thought process that even though the entry level iPhone bears the storage capacity of 16 GB, the mid-tier iPhone is currently bearing a 64GB storage capacity which has doubled from the past (the mid-tier iPhone 5S had 32GB storage). The top-tier iPhone 6 currently has 128GB of storage. Cybart estimates that the 64GB model will be the popular one amongst users if they have to choose between the three models.

This will cause people to lock their eyes on the 64GB model and even if the next year’s entry model gets a storage capacity upgrade and comes with 32GB, people will set their eyes on the middle tier model. Average Selling Price of the iPhone 6 would be high even though the cost of storage is going down and according to the estimates, this move will ensure a profit of at least $ 3 billion by the year 2015.

 

Conclusion

When you rack this year’s iPhone 6 against the Android products, you realize how pitiful the storage size is. Most Android phones allow the option of stacking additional storage by installing a SD card and even then the top-tier Android phones come with 32GB of internal storage. Apple’s decision may be shortsighted as many faithful users have started expressing their unhappiness.

“My iPhone has changed my life - I spend hours taking photos of the sidewalk as I walk down the street. I like the casualness, that it's low-resolution.” (Kiki Smith)

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