Spoiler alert: it’s the same reason why Apple decided to release an “entry-level” 16GB iPhone 6s, even when the smartphone is capable of shooting 4K video. Those file sizes aren’t exactly tiny and when you throw on a few songs, a couple podcasts, and a litany of selfies, your 16GB iPhone SE is going to run out of storage awfully quickly. Is it still a bargain?

When Apple officially took the wraps off the iPhone SE earlier this month, one of the device’s biggest selling points was that the fact that this was the cheapest “new” iPhone released to date. It’s only $399, but that’s for the 16GB iPhone SE. Realistically, the entry point should be at least 32GB these days, especially since the iPhone lacks expandable storage. So, why did Apple stick with a mere 16 gigs?

Because they want it to be useless. Because they want it to be less desirable. Because they want you to pony up the extra hundred bucks to get the 64GB iPhone SE instead. And how much of that extra $100 turns out to be pure profit for the folks in Cupertino? As you can probably guess from the title, they get an extra $88 to line their coffers. That’s because the difference in cost between 16GB of flash memory and 64GB is just $12. That’s according to HIS Technology analyst Wayne Lam.

The $399 price point for the 16GB model gets people interested. And then it’s easy enough to convince someone to spend the extra $100 for the 64GB instead, even if the “new” iPhone boasts old and boring technology.


Via Business Insider

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