Apple Inc. will earn an additional $3 billion in 2015 by keeping 16 gigabytes as the starting tier of the iPhone 6 and iPhone 6 Plus, according to analyst Neil Cybart of Above Avalon.
For most Apple fans, the iPhone 6 and iPhone 6 plus 16-gigabyte models are practically useless, and the mid-range iPhone has four times more storage capacity and is available at just $100 extra. As a result, opting for the extra storage is logical for most consumers.
Apple has made a remarkable move by offering the 16GB iPhone, knowing very well that most users will choose the 64GB version.
So the only objective of the 16GB version is to drive revenue by pushing people to pay an extra $100 for the medium-sized storage.
The report from Business Insider noted that using the 16GB version of the iPhone 6 and 6 Plus has been a problem for users, as the latest iOS version requires higher disk space for everyday usage.
The report noted that the 16GB version could limit simple activities that can be done on the phone, such as checking Facebook Inc.
According to Cybart, since the 16GB phone is not worth using and the 64GB version is available only for $100 more, users will opt for the 64GB version, which will in turn increase the average selling price for the iPhone.
With the average selling price shooting up and the cost of storage going down with ramped,-up technology next year the Cupertino, Calif.-based company will see a net gain of $3 billion than if offered a 32GB iPhone 6, estimates the analyst.
