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Refurbished iPhone And Samsung Memory
- Sep 26, 2018 -

A new report this morning analyzed Apple's pricing strategy for different storage versions of iPhone XS and iPhone XS Max. Specifically, compared to the 64GB version, Apple expects to earn about $134 more on the 512GB iPhone XS and iPhone XS Max. But in the refurbished iphone market, the size of the memory has little effect on the price, because the refurbished iphone can increase the memory through technical means.

According to the report, 512GB is Apple's highest storage option on the iPhone, and the company charges consumers a higher cost of NAND flash memory chips than they pay to suppliers. Apple's storage costs are about 25 cents/GB, and users pay about 78 cents/GB, so he says storage is definitely the most profitable iPhone feature.

refurbished iPhone 7.jpg

Apple's NAND storage cost for the 64GB version of the iPhone XS is $23.68, and the cost of 256GB and 512GB is $66.24 and $132.48, respectively. On the revenue side, the profit earned by the 512GB version is estimated to be $134 higher than the 64GB version, while the 2017 top iPhone X is $107 more expensive than the entry version.

Data on the refurbished mobile phone market shows that the market price of NAND flash is half that of a year ago, but Apple's iPhone storage version does not reflect these changes. In addition, the increase in storage capacity does not mean that Apple needs to do more work, they only need to change the chip.

The user price of 78 cents/GB is the same as last year. Of course, given Apple's NAND flash contract with suppliers, they may not have benefited from the recent price decline. However, this price is still higher than other mobile phones, such as Samsung Galaxy Note 9, users upgrading from 128GB to 512GB need to pay 65 cents / GB. Of course, refurbished Samsung mobile phones do not preserve value. Usually, after the new model is withdrawn for half a year, Samsung mobile phone refurbished mobile phones will appear in the market. It takes a year to wait for the refurbished iphone.

Apple CEO recently talked about the iPhone's high pricing strategy in an interview. He said that Apple's goal is to serve everyone. If you provide a lot of innovation and value, people will naturally be willing to pay.

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