Despite the growing storage needs of smartphone users, Apple continues to offer a 128GB variant for its iPhone models. While some, including me, may argue that this storage capacity is insufficient, especially for those who plan to keep their devices for several years, there are compelling reasons behind Apple’s decision to maintain this option.
One of the main reasons is the adoption of cloud storage services; in Apple’s case, it is iCloud. With almost two-thirds of Apple customers using paid iCloud storage, many users can manage their storage needs without relying solely on their device’s internal capacity. With 128GB being the cheapest, it sells out the most.
Apple’s Services segment, which includes iCloud storage, has become increasingly important to the company’s revenue strategy. In recent years, Services revenue has grown at a higher rate than overall revenue, reaching $16 billion in Q1 2021.
Another reason for maintaining the 128GB option is to provide a more affordable entry point for customers. But did you know that Apple costs almost nothing extra when it comes to increasing internal storage, while the consumers have to pay hundreds of dollars extra? That’s how Apple manages to maintain revenue even if the sales are down. You can read about it here. This strategy allows the company to maintain its market share and compete with other smartphone manufacturers that offer devices at various price points.
In conclusion, while some users may find the 128GB iPhone variant insufficient for their needs, Apple’s decision to continue offering this option is driven by factors such as the growing adoption of iCloud storage and the importance of the Services segment to the company’s revenue.
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