iPhone SE, New iPad Storage Pricing Is A Rip-Off - InformationWeek

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02:06 PM
Eric Zeman
Eric Zeman

iPhone SE, New iPad Storage Pricing Is A Rip-Off

Apple continues its practice of overcharging for storage with its newly unveiled iPhone SE and the new smaller iPad. The company's devices should come with more onboard storage, and upgrading shouldn't be so expensive.

iPhone SE, Smaller iPad Pro Unveiled: Up Close Look
iPhone SE, Smaller iPad Pro Unveiled: Up Close Look
(Click image for larger view and slideshow.)

Apple has been overcharging people for storage space on smartphones and tablets for years, and it needs to stop. The new iPhone and iPad are yet more examples of Apple's greed and desire to squeeze every cent possible from consumers.

The iPhone SE, iPhone 6s, and iPhone 6s Plus all start with a mere 16GB of storage. These phones cost $399, $649, and $749, respectively. Want more storage? That'll be another $100 to jump to 64GB.

Did you hear the sound of a cash register? I sure did. Cha-ching! Apple scored huge profits on that upgrade.

The same goes for Apple's line of iPads. The 12.9-inch iPad Pro starts with 32GB for $799, while the 9.7-inch iPad Pro starts with 32GB for $599. Jumping to 128GB will cost you $150 more. Apple pitches the two Pro tablets as powerful computing devices that can replace laptops. No one would buy a business laptop with just 32GB of storage. The iPad Air 2, iPad Mini 4, and iPad Mini 2 come with only 16GB each to start.

(Image: Apple)

(Image: Apple)

Now, let's consider the competition. The iPhone's chief rivals are the Google Nexus 6P ($499), Samsung's Galaxy S7 (around the $650 range), and LG's G5 (around the $650 range). All these phones come with 32GB of storage to start, and the latter two include support for expandable memory cards. Google only charges $50 to increase the Nexus 6P's storage to 64GB.

The iPad Pro's chief competition is the Microsoft Surface Pro 4. The Pro 4 costs a bit more at $899, but ships with 128GB of storage. The Surface 3, Microsoft's smaller tablet, costs $399 and ships with 64 GB of storage. Both of Microsoft's tablets include microSD memory card slots. Google's Pixel C tablet costs $499 and ships with 32GB of storage to start.

Storage is cheap. Amazon sells 32GB microSD memory cards for about $10, 64GB cards for about $20, and 128GB cards for about $40. 

It does not cost Apple $100 to increase the storage allotment in the iPhone from 16GB to 64GB. IHS tore apart the iPhone 6s Plus and found the 16GB module costs about $5.50 and the 64GB module costs about $17. In other words, you're overpaying Apple by about $83 (~5x) to jump from the 16GB iPhone to the 64GB iPhone.

That's a total rip-off.

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iPhones should start with a minimum of 32GB of storage. Period. Increasing to 64GB should cost a maximum of $50 more. Even then, consumers are paying three times the cost of the actual component. Similarly, the iPad Pros should start with a minimum of 64GB of storage. Period.

Apple needs to stop skimping with the storage and overcharging to improve it. With about $200 billion in the bank, Apple doesn't need the money.

Tell Apple how you feel: Buy something else.

Eric is a freelance writer for InformationWeek specializing in mobile technologies. View Full Bio
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Susan Fourtané
Susan Fourtané,
User Rank: Author
3/24/2016 | 8:11:24 PM
Re: Nonsense!
Eric, You are forgetting something really important here: iCloud. We don't need to store every single thing on the devices any longer. That's why we have iCloud. -Susan
User Rank: Ninja
3/24/2016 | 11:39:53 AM
This is total BS, and I'm tired of hearing it. First of all, there is a good reason why Apple is the only smartphone and tablet maker making a profit other than Samsung, and Samsung's profit is pitiful. All the rest are losing money. One major reason for that is that they give the farm away. If you look at the price of the top performing Compact Flash and SD cards, you'll see that they're pretty expensive. In testing at Anandtech, and others, you will also see that Apple's storage speeds are significantly higher than their competitors. Why? Because Apple is using more expensive flash storage. Apple used to charge another $100 moving from 16GB to 32, and another $100 to move to 64GB. That's been dropped in half as they move you directly to 64GB for $100, so it's not as though Apple hasn't cut the price of storage over the years, because they have. But also comparing the dismal performance of cheap flash cards to even the slower internal storage in Android devices is a mistake. In order to approach the internal flash speeds, you need a card rated at a speed of "1,000". Check the pricing on those.
User Rank: Apprentice
3/24/2016 | 10:19:56 AM
I agree! Though Sharing Photos & Music have improved
Unfortunately Apple knows that most consumers will pay the increased price point.  Though Apple has worked out the glitches with iTunes Match and iCloud Photo Sharing so it isn't as important to have a large amount of storage on your device . . . as long as you are paying for the related services. That would be $3 per month for 200GB of storage and $25 per year for iTunes Match.  The iTunes Match allows you to store and share all of your music (including old CD you have ripped) across all devices and you no longer need to include your pictures and music in your backup, making this process more efficient and easier to erase/rebuild a phone when needed.
User Rank: Strategist
3/24/2016 | 10:11:39 AM
Couldn't Agree More
I couldn't agree more, Apple is drunk on the cult following it has. What else can you call it, other than greed when they continue to overcharge for everything. And just saying, have you ever tried to fix an apple product your self? Insane... (i fix other brands all the time, with half the trouble and effort)
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