Apple iPhone 6 Goes On Sale: Pricing Details - InformationWeek

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Apple iPhone 6 Goes On Sale: Pricing Details
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Thomas Claburn
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Thomas Claburn,
User Rank: Author
9/11/2014 | 7:02:40 PM
RAM difference
I'm surprised Apple offers such a low memory configuration for its bottom of the line model: 16mb, 64, 128? I'd have thought the company would start with 32.
Michael Endler
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Michael Endler,
User Rank: Author
9/11/2014 | 7:44:55 PM
Re: RAM difference
Tom, I agree. In fact, I think it's a little cynical of Apple to use a 16/64/128 GB line-up. Apple exerts ENORMOUS control over SSD vendors and, I'm sure, enjoys enormous pricing advantages. Apple really could (and should, I'd say) have gone with a 32/64/128 menu. But instead, Apple realized that a huge number of people will just buy the cheapest new iPhone, whatever storage specs it happens to have. This brand power gave Apple a chance to push margins a bit, and they went for it. Understandable from a pure capitalist point of view, but still disappointing.
Joe Stanganelli
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Joe Stanganelli,
User Rank: Author
9/14/2014 | 7:57:37 AM
Re: RAM difference
> But instead, Apple realized that a huge number of people will just buy the cheapest new iPhone, whatever storage specs it happens to have.


Indeed, after the 5C experiment, it seems that Apple's new "down-market" route is selling the hoi polloi the basic model instead of a sub-basic model -- and making the basic model seem more down-market by making the higher end models even "higher."

Reminds me of a Harvard Business School project from several years back.  Harvard Business School students were tasked with helping Wendy's sell more double cheeseburgers.

The solution they devised?  Offering a triple cheeseburger.

The point of the triple cheeseburger wasn't to sell itself.  The point of the triple cheeseburger was to increase double-cheeseburger sales -- the idea being that customers walk in, decide they're REALLY hungry, but not so hungry as to warrant getting the largest thing on the menu.

It worked.  Double-cheeseburger sales increased as the product went from being a luxury to being a compromise.

Here, Apple's going the 16/64/128 route instead of the 32/64/128 route is genius because that huge difference will only further encourage people to buy the 64 GB models (where they might otherwise have been happy to buy the 32).  Additionally, it makes the 128 GB seem even BIGGER by comparison -- and may also increase sales for that offering as well by boosting it in the minds of those who are even slightly inclined to seek the biggest and best.
tjgkg
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tjgkg,
User Rank: Ninja
9/15/2014 | 9:47:30 AM
Re: RAM difference
Interesting. Of course if you had an Android, you could buy a micro sd card with your desired amount of space. Because of that flexibility, you could get a bigger card if necessary or stay as is. Same thing with a battery. You have that kind of flexibility away from Apple. I am still trying to figure out what value the Apple price premium brings.
Joe Stanganelli
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Joe Stanganelli,
User Rank: Author
9/15/2014 | 10:30:28 PM
Re: RAM difference
Apple charges that much for its devices because there are enough people out there who will pay it -- period.

Besides, Apple's mobile devices have compatibility/integration capabilities with its laptops and desktops.  Ditto for Microsoft and its Windows-based mobile devices.  Google does not have enough market penetration with its Chromebooks to make an Android phone worthwhile for those seeking real integration.
tjgkg
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tjgkg,
User Rank: Ninja
9/16/2014 | 9:24:05 AM
Re: RAM difference
The Apple devices are nice but way too expensive-in my opinion only of course. Yes there are lots of folks using Mac Books - I see them in Starbucks every day! No doubt the devices are nice, well made, but they are expensive. But as long as there is market demand, they will sell. You are right about the lack of Android penetration in the market. Surprising considering how Chrome and Android are excellent systems and there are a lot of Galaxy and Notes out there.
Joe Stanganelli
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Joe Stanganelli,
User Rank: Author
9/14/2014 | 8:00:30 AM
Re: RAM difference
@Thomas: Personally, I find the numbers bafflingly huge for a smartphone.  I don't even use 128 GB on my primary workstation!

And I find myself wondering: Who would want or need this much?  On the one hand, it's easy to suggest that Apple is going for the market of hipsters who download five zillion songs and podcasts and apps.

But on the other hand, this suggests that Apple is even more fervently going after the highly-regulated (and thereby less cloud-friendly) mega-big data enterprises.  Healthcare, life sciences, manufacturing, financial services, etc..

Certainly, as laptops become desktop replacements, and mobile devices become laptop replacements, the market is becoming all about storage and screen size (and in the case of the latter, Apple is certainly accommodating with its iPhone 6 "Plus" model, in addition to word that the next iPad will have a double digit-inch screen to better compete with the Surface Pro).
tjgkg
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tjgkg,
User Rank: Ninja
9/15/2014 | 9:42:49 AM
Re: RAM difference
The apps on a smartphone are not as large as those on a laptop. I can view spreadsheets and docs on a smartphone but i am not sure i could create a sophisticated pivot table or major database. So i am not sure how all that storage space will be used for big data. I will say that on my S4 i do have a number of videos and lots of songs that i can access on my commute and i use a 64g micro sd card. And i still have 25g of space left. Apple is just doing this to keep up with Android on the storage front.
Joe Stanganelli
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Joe Stanganelli,
User Rank: Author
9/15/2014 | 10:26:15 PM
Re: RAM difference
They're already used for viewing such big data as medical imaging.  The apps may lack size and/or sophistication, but there are still plenty of data out there that can be accessed and used on iPhones and iPads.
tjgkg
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tjgkg,
User Rank: Ninja
9/16/2014 | 9:20:42 AM
Re: RAM difference
Viewing that kind of data certainly takes a lot of bandwidth and processing power. That must tax the iPhone pretty hard. I think the new ones have a quad processor as does my iPad Air. Still, there is a performance issue at times.
DarronC504
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DarronC504,
User Rank: Apprentice
9/11/2014 | 10:41:47 PM
Trade in your old iPhone.
Get ready for the new iPhone 6 by putting some cash back in your pocket when you trade in your old iPhone for cash at Farewellcell.com currently offering up to $225 for an iPhone 5 and up to $360 for an iPhone 5S.
Somedude8
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Somedude8,
User Rank: Ninja
9/12/2014 | 2:03:43 PM
Re: Trade in your old iPhone.
Good call on the trade in. My last old phone sat in a drawer for a couple years and was eventually just thrown away. Looks like I can get $80 for my old S3. Not a fortune, but that is almost half the $200-ish I expect to pay for a new one.
tjgkg
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tjgkg,
User Rank: Ninja
9/15/2014 | 9:35:47 AM
Really?
Apple is really pushing the envelope with these prices. I cannot see paying that much money for these phones when you can get the same, if not better features on other premium smartphones on Android.
paul020
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paul020,
User Rank: Apprentice
9/17/2014 | 10:16:32 AM
Luxury Upgrade Discussion
I don't understand why all the discussion of the upgrades on the iPhone. Consider what consumers do with cars and SUVs - I don't think most dealerships will even stock the low end models, and consumers gladly purchase the leather seats, sunroofs, expensive satelite radio, wifi, multiple infotainment screens - all important extras for driving the kids to the soccer game or picking up groceries.
Joe Stanganelli
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Joe Stanganelli,
User Rank: Author
9/21/2014 | 6:39:47 PM
Re: Luxury Upgrade Discussion
It's all about managing expectations.  The cellphone industry has done a great job of building their models to not last -- and convincing us that we shouldn't expect them to.

The auto industry, however, is not quite the same.  Certainly, "they don't build them like they used to," but there is still a residual expectation of cars lasting for quite a while.  Plus, they rather have to because they're such big-ticket items.  A big difference between a $200-800 phone and a $20,000-80,000 car.


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