iPhone Math: It Doesn't Add Up

Tech Reporter Rich DeMuro takes a look at some basic math that explains why the cheapest iPhone is actually the most expensive iPhone to buy.

[DanRustle]

damn. i never thought about it like this, and wondered why there were a gap in storage some years, 128gb is the prime spot for storage for the majority of users . anything higher than that is pretty much for data horders and professional video/photogs

[jamesdominiak]

Depends how you look at it. Is cheaper to buy more RAM if looking at value for money. Also resale value will be more. Plus, buying it on contract means paying an additional 100-150 more over time for the phone. 64gb is also more adequate as not many use more than that so have to ask yourselves will you you really use more storage than you need. The best way overall is to calculate financially cost of each phone if going to buy outright as opposed to buying it via contract and offsetting against its likely resell value. In that way you know financially what is best for you.

[dagnytaggart]

I actually worked selling Apple devices for a long time. Spent a lot of time convincing customers to buy the largest storage option or at least NOT the minimum, ever. A 64GB MacBook Air, seriously?

Even if you don't need the storage now, you might in the near future and the device maintains a terrific resale value.

Good work!

[yuh]

For an extra $250 on top of the base 128GB Note 9, you could get the 512 GB version with 8 GB of RAM.

[coolventurer]

I came to same conclusion! But the best deal would be going for the xs max 256gb rather than the xs 256gb. The xs 256gb is around 1149 $ so if U add 100dollars more you get bigger screen n battery. So iphone xs max 256gb is the best value for money deal! That would make a good investment besides long term usage. Can't wait for it to arrive in my country!

[toujourslyonnais]

This is not just Apple math. Business that like to bundle things together make sure you know you're getting a better value so they can make an easy profit. Say a fast food value meal comes with a burger, fries, a drink, and a cookie. Sure if I bought everything separately, it would be more expensive, but if I don't want fries and a cookie, why choose the meal bundle just because it's a better value. As for the phone, I'm not going to pay for extra storage space that I don't plan on using. So even though I'm getting ripped off with the 64 gig model, I'm not putting any extra money down for storage space I don't actually want.

[panigale]

always use this technique while buying laptops, RAM, Hard drive...

[sonictonic_]

Woohoo! Glad I was smart and got the 256GB model, haha. Also, shame on Apple for eliminating the 128GB and making 64GB the first model, in 2018. Pretty ridiculous. :P

[yuh]

Wow! I never knew how much profit Apple is making off of the base-model iPhones.

[pheenix]

They price it that way to get more money out of you. Most people will go for best value. And those who can't afford it? Well they'll gouge you for what they can. I don't doubt Apple make half decent products but their arrogance in charging what they do is why I will never buy another Apple product. The iPhone Xs max starts at $1799 in Australia. That's almost twice the price of a decent laptop or a month in rent.

[henryshugart]

The math is so far off. He assumes that dividing the amount of storage by 2 should decrease the price by 200 dollars. However looking at it in a more practical way increasing memory doesn't cost apple 200 dollars to double the memory. It costs apple per gigabyte of storage. With apples current pricing model you pay 50 dollars for every additional 64 gigabytes of storage which better reflects apples actual cost of production than paying 200 dollars mor to double the memory.

[iKayorei]

I wished you uploaded this video a week earlier, but I'll take this L as I already ordered my phone....

[stevenuk]

you're missing it is cheaper for apple to make the XS than it is to make the XR, now Apple don't really want you to know that!

[creativebea]

Thanks, Rich!
Really rubs me the wrong way that Apple is abusing/fooling their customers who can't afford anything but 64 GB models!

Is that $250 from the low income users worth it @Apple? Huh, is it, #TimCook? Comment on this story, please. This pricing is unacceptable! 🎙