Report hints that Apple may drop 16 GB iPhone


Benjamin Mayo for 9 to 5 Mac:

An IHS Technology analyst has posted on Chinese social media that company supply chain research indicates that the iPhone 7 will feature 32 GB storage as the $199 base model, which would mean Apple would finally drop the much-loathed 16 GB SKU from its lineup with its new flagship smartphone expected in the fall.

The 16 GB model to me seemed the classic up-sale. It always felt to me that the 16 GB iPhone was a low price tag for the entire product lineup. It even got weirder when Apple dropped the 32 GB model and made the 64 GB capacity the middle tier. Apple probably didn't expect people to buy it, in fact they probably counted on it to boost their profits. (16 gb vs 32 gb component doesn't cost anything close to $100) People actually buy the 16 GB model, however.

I think things have gotten better with Apple's more lean delta OS updates, Unity app deployment, and leveraging the cloud for photos and videos. The lowest point was most likely a couple years ago, which means through some engineering Apple managed to technically hang on to the 16 GB model a little longer.

Good news though if Apple is finally letting it go. It will probably hurt their margins as 32 GB can be comfortable and more people will be satisfied with the entry level iPhone. I think though it will help with the user experience and make customers happier, which is good business.