Apple Inc. (AAPL) Makes $75 Profit On 16GB Space In Each iPhone: Walter Piecyk


In a program on CNBC, Walter Piecyk, BTIG analyst said that Apple Inc. (NASDAQ:AAPL) will need to add more memory in its phones because the emerging social trends are filling up the existing memories pretty fast. People take hundreds of selfies in a week. They make short videos and clips on the go. The trend of sharing videos through social media is going viral. We see a lot of people who take random images, videos during their walks, shopping, work and sports. The technical revamps and quality improvements done by Apple Inc. (NASDAQ:AAPL) in its camera and performance has increased the size of data and space taken on the device. Piecyk said that a normal selfie taken from a latest iPhone 6 is around 3 times the size of a selfie taken from iPhone 4.

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Video is the real memory hog these days, thinks Piecyk. A normal 30 seconds video takes around 300 MB of space in the phone. An image or selfie takes 1MB space. So the basic data attribute eating memory is video. Social media service like Snapchat and Vine has given a dramatic surge to the need of space because they are video based services. Apple Inc. (NASDAQ:AAPL) makes a lot of money from the differentiation it makes based on memory version. The source said that a normal 16GB iPhone and a 32 GB iPhone has a price difference of $100 dollars. Apple Inc. (NASDAQ:AAPL)’s cost for adding an extra $16 GB is around $25. This means that Apple Inc. (NASDAQ:AAPL) makes $75 extra on extra space phones.

The need of more space on Apple Inc. (NASDAQ:AAPL)’s iPhones is also felt while making an update to the latest version of iOS, the iOS 8. People with less memory phones had to delete images, videos and data to make their phones compatible with iOS 8.

 Apple’s iPhone is one of the top selling smartphones of 2014Carl Icahn‘s Icahn Capital hold around 52.8 million shares of  Apple Inc. (NASDAQ:AAPL).

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