A Apple go from 16 to 64 GB on the iPhone costs $10, but you paid $100

The launch of the iPhone has generated quite a lot of headlines and debates, but if anything is clear is that there are several reasons why this new device Apple could succeed. The price is definitely the highlight, but there is a big problem with the strategy that follows this signature when offering its different variants.

In fact, there is a constant which we discussed in the past: Apple offers a base model with 16 GB for $ 399 and then make the jump 64GB model for $ 499. The company thus tries to entice users to opt for the top model and does so knowing that their profit margin will be higher. Much more, in fact!

iPhone 16 to 64 GB
Image Source: Google Image

We paid 10 times more than those 64 GB Apple

It is shown by a study of the cost of materials by the consulting firm IHS in which it was found that the bill of materials is $ 160 for the 16GB model and $ 170 for the 64GB model. What does that mean? That the passage of 16 to 64 GB Apple costs $ 10, but the user costs 100 dollars.

That bill of materials is certainly the lowest of all iPhone models that have been released in the market, which has enabled iPhone SE iPhone is also coming to stores with the smallest price of its history. Apple has managed to control the cost advantage of manufacturing processes iPhone 5S, with which it shares the exterior design.

Inside there are many differences, of course- the new Apple A9 processor and camera are good examples but for example the 4 – inch display manufactured by LG is $ 20, when in 2013 the same screen will cost $ 41 per unit.

All influence the final price, but what is clear is that Apple has to understand once and for all that from a basic capacity of 16 GB when there is no way to expand that section is a mistake. The thing is even more striking now that the camera can even capture 4K videos on -best do not grabs many or moved quickly the computer to free space-, and now only have to wait for future iPhone 7 so more consistent with that facet.

Initial, inconspicuous sales

Normally Apple boasts sales of its smartphones in the first weekend offered for sale, but this time has not been, and there is a simple explanation: these sales have broken records as with other models, though it is also true that the time when he has been released just in between the previous iPhone 6s / Plus and expected iPhone 7 / Plus does not favor this section.

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The data come from Localytics and KGI Securities analyst Ming-Chi Kuo. The latter indicated a few days ago that had been set aside 3.4 million iPhone in China, and that demand “had been significantly lower than past models.”

Meanwhile, Localytics that according to their data the iPhone has now managed to capture 0.1% of the overall share of iPhones worldwide, and had described the launch as “lackluster”. Its initial adoption has been worse than the iPhone 5s or later models, but not compared for example with the launch of iPhone 5c, which itself could have exceeded that initial adoption.

Kuo expects that the iPhone will not be enough for Apple to sell more iPhones achieved in 2015. In fact, indicated, while last year managed to sell 232 million units this year, the analyst indicates that sold between 190 and 210 million units in total (85-95 million in the first half and 105-115 million in the second).

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