Apple is making insane amounts of money off iPhone XS and XS Max storage

Apple is making insane amounts of money off iPhone XS and XS Max storage
Apple might not be selling as many smartphones as Samsung or even Huawei nowadays on a global scale, but in spite of a well-documented market slowdown, the company doesn’t seem willing to reduce its notoriously hefty profit margins.

Don’t let the lower iPhone XR price point fool you, as compared to the XS and XS Max, the colorful 6.1-incher comes with plenty of downgrades and cost-cutting measures. Meanwhile, the most expensive iPhone XS Max configuration fetches a rather outlandish $1,449, providing a record-high 512GB storage space.

Obviously, the massive $400 difference between “entry-level” and top-of-the-line XS Max variants is not reflected in Apple’s component-related expenses. That makes storage “absolutely the most profitable iPhone feature” right now, according to IHS Markit analyst Wayne Lam.

Lam highlights other upgrades, like a screen size increase, generally mean the entire phone needs to be “completely re-engineered," while adding more storage space is as simple from a production standpoint as swapping a chip.


Said NAND flash memory chips have gotten cheaper in recent years too, but not for actual buyers of Apple’s hot new iPhones. The Cupertino-based tech giant continues to charge 78 cents for each gigabyte of digital hoarding room offered to end users on board of the iPhone XS, despite paying suppliers a measly $0.25 per GB. 

In contrast, Samsung’s upgrade fee from the 128 to the 512GB Galaxy Note 9 comes down to 65 cents per gigabyte, which maintains a reasonable profit margin while feeling a little less outrageous for customers.

Of course, Apple has always earned big bucks from internal iPhone storage (while restricting microSD expansion), but the XS and XS Max take those gains to a whole new level. We’re talking a cool $134 more pocketed per device for the largest storage option compared to the smallest configuration, while last year’s iPhone X gap was “only” $107. And yes, that excludes assembly and “related software work.”

The good news is Apple has a clear incentive to go even higher and sell 1TB iPhones in the not-so-distant future. But it’s probably best not to think about how much that could cost.

source: Bloomberg

Related phones

iPhone XS
  • Display 5.8" 1125 x 2436 pixels
  • Camera 12 MP / 7 MP front
  • Processor Apple A12 Bionic, Hexa-core, 2490 MHz
  • Storage 64 GB
  • Battery 2659 mAh(20h talk time)
iPhone XS Max
  • Display 6.5" 1242 x 2688 pixels
  • Camera 12 MP / 7 MP front
  • Processor Apple A12 Bionic, Hexa-core, 2490 MHz
  • Storage 64 GB
  • Battery 3179 mAh(25h talk time)

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53 Comments

1. AmashAziz

Posts: 2934; Member since: Jun 30, 2014

Apple is so greedy :(

2. Phonehex

Posts: 767; Member since: Feb 16, 2016

A negative article on Apple by P.A . Is this for real ?!?! .

4. Fred3

Posts: 566; Member since: Jan 16, 2018

I guess they been reading all the angry comments finally

13. Atechguy0

Posts: 918; Member since: Aug 03, 2018

The XS Max is a joke, last year the Apple zealots were saying that the screen is too small to bring split screen multitasking to IPhones. So what's the excuse now? Oh thats right there is none. In Canada and Australia the XS Max is $2000, then you have to add the tax. Anyone who buys the XS Max over a Note 9 is an iDiot.

40. darkkjedii

Posts: 31346; Member since: Feb 05, 2011

I have both. My Max is the 256 gig gold.

41. Sakeem

Posts: 863; Member since: Sep 05, 2012

So.........my prediction proved correct Darkk???? I knew you wouldn't be able to help yourself.

42. darkkjedii

Posts: 31346; Member since: Feb 05, 2011

My wife bought me one as a gift for our 5th anniversary. Your prediction didn’t come true. But yes I now have a 256 gig Max and love it. I bought her a series 4, and AirPods.

43. Sakeem

Posts: 863; Member since: Sep 05, 2012

Ahhhh....ok...close. You two are one though so............it kind of did come true. Lol. j/k Enjoy. Hope you two have many more years together.

48. darkkjedii

Posts: 31346; Member since: Feb 05, 2011

Right on, appreciate the kind words.

28. maherk

Posts: 6967; Member since: Feb 10, 2012

All their praising didn't even get them an invitation to Apple's keynote, hell, not even a review unit was send their way! I am not asking them to be biased against them, but I wish they can go back to being the neutral tech website I first visited in 2012.

5. Fred3

Posts: 566; Member since: Jan 16, 2018

I wonder how much Apple is paying Google for their ICloud

55. mootu

Posts: 1530; Member since: Mar 16, 2017

Probably as much as Google is paying Apple to have Chrome on IOS (over $3 billion last year).

7. STRANG3R

Posts: 234; Member since: Sep 24, 2015

They are milking their own customers. Doesn't provide fast charger in 1000$+ phone while android manufacturer gives on 200$ phones. But there no lack of idiot followers who will pay anything.

49. darkkjedii

Posts: 31346; Member since: Feb 05, 2011

Dude, the trade off for the fast charger on a $200 phone, compared to what you do get in an iPhone is night and day. $200 androids don’t run Oreo, or Pie, and give you nearly what iOS 12 on a new iPhone does. That was a bad comparison...please come again.

53. cheetah2k

Posts: 2275; Member since: Jan 16, 2011

Bullsh1t, check out the Xiaomi Redemi 5 Plus with Miui 9 (Oreo - Android 8) for AUD$195.. https://www.banggood.com/Xiaomi-Redmi-5-Plus-Fingerprint-5_99-inch-3GB-RAM-32GB-Snapdragon-625-Octa-core-4G-Smartphone-p-1236761.html?rmmds=search&ID=232 I think you need to come again man. Maybe do a little research too

56. darkkjedii

Posts: 31346; Member since: Feb 05, 2011

With those specs...nahhh no need to come again.

66. T12RYK

Posts: 849; Member since: Jun 10, 2011

If Apple deems it unnecessary to include in the box, then we don't need it in the box!

8. midan

Posts: 3022; Member since: Oct 09, 2017

Their storage is also incredible fast, you pay for quality https://cdn.gsmarena.com/imgroot/news/18/09/iphone-2018-benchmarks/-728/gsmarena_005.jpg Seriously how one can be that much faster, insane

17. Papa_Ji

Posts: 859; Member since: Jun 27, 2016

26. midan

Posts: 3022; Member since: Oct 09, 2017

Wow Samsung is screwed

50. darkkjedii

Posts: 31346; Member since: Feb 05, 2011

Yeah they just closed their doors, after having a fire sale, and a Crazy Eddie everything 50% off sale. Prices are insaaaaaaannne.

44. BlackhawkFlys

Posts: 926; Member since: May 07, 2014

That's called processing..

9. Wazupmrg

Posts: 189; Member since: Apr 10, 2017

So the moral of the story is, if you want to spend more money on a phone that can't do as much as a flagship Samsung, throw your money away with Apple.

10. Kibzara

Posts: 124; Member since: Feb 24, 2016

You...don’t...say...

11. redmd

Posts: 1943; Member since: Oct 26, 2011

They didn't become the Trillion dollar company for nothing. Good job Apple.

14. Babert

Posts: 165; Member since: May 08, 2013

well i stopped buying apple products since 2011! happier life!

15. slashas

Posts: 143; Member since: Jul 17, 2017

Better invest the difference in cloud solution, iCloud is not the cheapest one but there are plenty of choices.

16. Plasticsh1t

Posts: 3109; Member since: Sep 01, 2014

And some people want Apple products to be made in the US just to make the prices go even crazier. Yeah sure.

19. YeahYeah

Posts: 250; Member since: Mar 16, 2016

20. JCASS889

Posts: 568; Member since: May 18, 2018

while ive been enjoing 564gb of storage on my phone since may

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