Apple iPhone 6 Goes On Sale: Pricing Details - InformationWeek

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Apple iPhone 6 Goes On Sale: Pricing Details
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Joe Stanganelli
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Joe Stanganelli,
User Rank: Author
9/14/2014 | 7:57:37 AM
Re: RAM difference
> But instead, Apple realized that a huge number of people will just buy the cheapest new iPhone, whatever storage specs it happens to have.


Indeed, after the 5C experiment, it seems that Apple's new "down-market" route is selling the hoi polloi the basic model instead of a sub-basic model -- and making the basic model seem more down-market by making the higher end models even "higher."

Reminds me of a Harvard Business School project from several years back.  Harvard Business School students were tasked with helping Wendy's sell more double cheeseburgers.

The solution they devised?  Offering a triple cheeseburger.

The point of the triple cheeseburger wasn't to sell itself.  The point of the triple cheeseburger was to increase double-cheeseburger sales -- the idea being that customers walk in, decide they're REALLY hungry, but not so hungry as to warrant getting the largest thing on the menu.

It worked.  Double-cheeseburger sales increased as the product went from being a luxury to being a compromise.

Here, Apple's going the 16/64/128 route instead of the 32/64/128 route is genius because that huge difference will only further encourage people to buy the 64 GB models (where they might otherwise have been happy to buy the 32).  Additionally, it makes the 128 GB seem even BIGGER by comparison -- and may also increase sales for that offering as well by boosting it in the minds of those who are even slightly inclined to seek the biggest and best.
Somedude8
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Somedude8,
User Rank: Ninja
9/12/2014 | 2:03:43 PM
Re: Trade in your old iPhone.
Good call on the trade in. My last old phone sat in a drawer for a couple years and was eventually just thrown away. Looks like I can get $80 for my old S3. Not a fortune, but that is almost half the $200-ish I expect to pay for a new one.
DarronC504
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DarronC504,
User Rank: Apprentice
9/11/2014 | 10:41:47 PM
Trade in your old iPhone.
Get ready for the new iPhone 6 by putting some cash back in your pocket when you trade in your old iPhone for cash at Farewellcell.com currently offering up to $225 for an iPhone 5 and up to $360 for an iPhone 5S.
Michael Endler
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Michael Endler,
User Rank: Author
9/11/2014 | 7:44:55 PM
Re: RAM difference
Tom, I agree. In fact, I think it's a little cynical of Apple to use a 16/64/128 GB line-up. Apple exerts ENORMOUS control over SSD vendors and, I'm sure, enjoys enormous pricing advantages. Apple really could (and should, I'd say) have gone with a 32/64/128 menu. But instead, Apple realized that a huge number of people will just buy the cheapest new iPhone, whatever storage specs it happens to have. This brand power gave Apple a chance to push margins a bit, and they went for it. Understandable from a pure capitalist point of view, but still disappointing.
Thomas Claburn
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Thomas Claburn,
User Rank: Author
9/11/2014 | 7:02:40 PM
RAM difference
I'm surprised Apple offers such a low memory configuration for its bottom of the line model: 16mb, 64, 128? I'd have thought the company would start with 32.
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