MARKET WATCH: The gadget giant announced Tuesday that it sold 74.5 million iPhones in the final quarter of 2014.
MARKET WATCH: The gadget giant announced Tuesday that it sold 74.5 million iPhones in the final quarter of 2014.
One explanation: Apple’s decision to drop 32 gigabyte phones for the latest models, while maintaining 16GB as an entry level phone is paying off. “Apple took an interesting tactic with storage in this round of iPhones,” says Brian Colello, analyst at research firm Morningstar. He says 16GB doesn’t provide much storage with apps, photos, videos and the operating system and it’s more enticing to pay $100 to trade up to 64GB rather than 32GB. “We think Apple did a good job getting people to trade up and buy pricier memory,” he says. “When customers pay for more additional memory, it’s margin accretive for Apple, a positive for net income.”
And those who choose to stick with their 16GB might not have enough memory by the time the iOS 9 operating system rolls around. Last year, online forums were choc-a-block with advice on how to free up memory on the iPhone for the upgrade to iOS 8.
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