Apple still charging 300% of costs on iPhone storage upgrades, says WSJ
Apple still making 300% profit on iPhone storage upgrades, says WSJ. Analysis suggests the company is still charging three times its own costs for higher storage tiers on the iPhone 18 Pro.
Intelligence analysis by Qwen 2.5 (3B)
Apple is accused of charging excessively high prices for iPhone storage upgrades, with some upgrades costing more than three times the company's own costs, according to a WSJ analysis.
Apple is making a lot of money when you buy more storage for your iPhone. They say they're paying more for the storage, but they're still charging more than what they spend.
Analysis
{"heading":"The iPhone 18 Pro Upgrade Scenario","subheading":"Apple's Cost and Pricing Dynamics","content":["The iPhone 18 Pro upgrade from 256GB to 1TB costs $600, with Apple's estimated direct cost at $192, resulting in a 318% markup.","The WSJ analysis suggests that Apple is still charging three times its own costs for higher storage tiers, despite the company's claims of margin pressure.","The analysis notes that Apple's cost for SSDs in Macs is faster than third-party storage cards often cited as evidence of the company's greed."]}
Key points
- Apple is accused of charging excessively high prices for iPhone storage upgrades.
- The upgrade from 256GB to 1TB costs $600, with Apple's estimated direct cost at $192, resulting in a 318% markup.
- The WSJ analysis suggests that Apple is still charging three times its own costs for higher storage tiers.
The market impact is likely to be minimal as the article does not provide any clear indication of how this would affect the stock market or other financial instruments.
If the market impact is significant, it could lead to a short-term drop in Apple's stock price as investors react to the perceived pricing issue.
