New iPhones’ storage upgrades generate a lot of revenue at a small production cost

September 24th, 2018   decode   news

It’s not the first time Apple has charged a price premium for storage upgrades, but the 512GB option has been introduced just this year and costs $350 more than the lowest 64GB variant.

Industry analysts claim that the price jump is unjustified and Apple is just looking to make extra revenue by charging its customers more than it should for the 256 and 512GB models. If you opt for the 512GB alteration, for example, you will be giving $134 more profit to the company compared to the 64GB choice.

As Wayne Lam from IHS Markit says, storage upgrades are the most profitable feature as the…

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