I love Apple’s innate attention to detail, the higher build quality, and their newfound attitude about being competitive on price. That said, why does Apple continue to gouge customers with high flash storage prices?
16GB, $100. $32GB, $100
Apple has a much deserved reputation for high quality and performance that is reflected in the price tag of most of the company’s products.
Let me give you the most glaring example of how Apple continues to enrich their already stuffed money coffers by pricing the iPad and iPhone models based on storage.
First, the iPad mini. At $329 for a 16GB iPad, Apple aims to be competitive with the plastic trash at the low end (Google and Amazon, I’m looking at you), but not too much.
$329 gets you the screen, the battery, the case, the CPU, RAM, connectors, and 16GB of storage. $100 more gets you only another 16GB of storage. That’s $429, or, almost one third more than the base price, for a 32GB iPad mini, a storage amount that many think is the minimum anyway.
Yet, going from a 32GB iPad mini to one with 64GB of storage is yet another $100. That’s $100 for 16GB. And $100 for 32GB. Or, put another way, $200 for $64GB.
That, my friends, is gouging of the first degree. But Apple isn’t content to stop there. If you’d like an iPad or iPad mini with a few extra cellular chips and antennas inside, that’s another $130. For a chipset and antennas. That’s almost half the price of the base model iPad mini by itself.
Max out the iPad’s storage and add the cellular option, and a $329 iPad mini becomes a $659 device with a mediocre screen.
The same thing holds true with the iPhone 5. Whether you go with Sprint, AT&T, or Verizon, the base model iPhone 5 with 16GB of storage starts at $199. 16GB more is another $100.
Another 32GB is another $100. That’s $200 for an additional 48GB.
To be fair, I don’t mind paying a premium for quality products. Apple’s products have an inherent value that makes even used Macs, iPhones, and iPads valuable in a way that Amazon, Google, and Samsung can only envy.
What bothers me is how blatant Apple can be about product model positioning and pricing vs. competitors. It’s no iPad, of course, but a Kindle Fire HD with 32GB of storage and a better screen is only $264 (remove the special offers). A similarly equipped iPad mini is $165 more.
I want Apple to make a profit so they can continue to wow the faithful with well designed and superbly constructed devices. But Apple is sitting on well over $100-billion in profits and can easily afford to enlarge their market share without going broke like Google and Amazon.