Apple to Earn $3 Billion in 2015, Thanks to 16GB Models of iPhone 6

Last week, a survey revealed that majority of iPhone customers are choosing to buy the cheapest storage options possible. And while having a 16GB iPhone 6 / 6 Plus can limit what you can do on your phone, considering how much space apps, videos, and photos take up these days, analyst Neil Cybart has revealed that the decision to include only 16GB of storage is actually pretty good for Apple (via BusinessInsider).

Iphone 6 plus 5

The Above Avalon analyst has done some number crunching and has estimated that Apple will earn $3 billion next year thanks to the 16GB models of iPhone 6 and 6 Plus. Cybart explains that the mid-tier iPhone’s storage has doubled from 32GB to 64GB. This will cause a lot more people to go for the 64GB model, which costs $100 more, and most likely be the most popular model of the three.

“This, Cybart says, will lock people into the middle-tier iPhone, even if Apple increases next year’s entry-level iPhone storage to 32GB. That will keep the average selling price (ASP) of iPhones higher than before, even as the cost of storage goes down. Combine it with the cost of storage, and Cybart estimates Apple is on track to earn about $3 billion in 2015, simply by making the entry-level iPhone 16GB this year.”

How do you guys see Apple’s decision to keep the entry-level at 16GB and tempting you to spend a $100 more on an iPhone 6 / 6 Plus?

“Technology runs through my veins...” | Follow me: @DrUsmanQ usman@iPhoneinCanada.ca

  • Chrome262

    Memory is not that expensive, they should of made the base model 32 gig. Not 16

  • ShaBi

    I see it as a great business decision to rip people’s money off in the long term.

  • Tim

    Yeah, 16gb makes for a poor user experience for most, but it’s one of those user cases where people will blame themselves rather Apple most of the time. “I should have went for the 64gb model”, many will say, as opposed to “16gb is too low for a phone today.”

    The staggering of options and their associated price points are certainly the work of clever business minds rather than consumer friendly ones.

  • tilda

    LOL – the purpose of business is to earn money. Purchasing an iPhone is a choice, not a necessity.

  • ShaBi

    I’m sorry, would “I see it as a great business decision to make more money out of their consumers for an extended period of time” be better for you?

    I actually love how Apple runs their businesses, FYI.

  • K3

    anyone remember the Mophie Space pack?

  • OliChabot

    I love Apple but it’s honestly fucki*ng disgusting that they are forcing customers into spending 100$ more on a phone just because they don’t offer the option of entering an SD card or simply put the entry model as a 32gb. I mean, it could be 50$ I wouldn’t care that much since it’s about the same price as an SC card but 110$, really ?

  • yoooooooo1

    3 billion dollars is definitely ruining your business