The introduction of Apple’s newest smart phone, iPhone 6S, revealed that the organization has an amazing capability to keep forcing the technological frontiers of components design. But this statement also came with an aspect that was a bit bitter for some of Apple’s numerous users. The entry-level version of the smart phone has just 16GB of storage space: capacity for music, films, images, applications, etc. — an area that was probably too small even several years ago.
The ongoing fall in memory space prices has made the company’s lack of kindness in this aspect more obvious. The consumer experience of the under-equipped iPhones can be rather bad, and iPhone 6S has its own options, like the capability to record ultra-HD videos, that will fill up the 16GB storage space in just a few hours.
The idea to sell a limited memory is not a mistake, since it clearly increases Apple’s earnings, but in a wider business sense, it is not a very smart marketing technique. The organization is already an incredibly successful entity with an incredibly large amount of cash. It is affected by some uncertainty about the long-term leads. Under these conditions, it might have missed an easy chance to business a little productivity now fro them to lay the base for bigger success in the future.
It is not too difficult to determine what Apple wants to do here. Making the entry-level device with only 16GB of ROM space rather than a larger 32GB storage space pushes greater income in two directions. One, it decreases the cost of production at $649, which improves market sales for their lowest-end design. Second, and probably more important than that, it pushes many individuals who could be happy with their 32GB smart phone to invest $749 for a 64GB version. The 64GB flash processor is more costly than the 16GB flash processor, but it is not $100 more expensive, so forcing customers up the selling chain improves not just income, but also market profit.
So measly storage space on the lowest-end iPhones increases Apple’s income and overall profit, and that is the type of stuff self-interested businesses do. Something to protest about maybe, but not a surprising story.
It might be good as far as this goes, but it brings the question of what objective is wanted by Apple gathering more money. The company will pay out big (and growing) amounts of money to current investors in the form of benefits and buybacks, but its tremendous money stockpile is remorselessly piling up towards $200 billion.
Image source: ValueWalk