Apple Inc. (NASDAQ:AAPL) Will Be Getting an Extra $3 Billion in Revenues for Not Releasing A 32GB iPhone 6

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News has it that Apple Inc. (NASDAQ:AAPL) will be getting an extra $3 billion in revenues in the year 2015 if it keeps the starting tier to 16 GB for iPhone 6 Plus and iPhone 6. According to the analyst at Above Avalon, Neil Cybart, iPhone 6 and iPhone 6 Plus are not of much value to the customers if the company keeps on bringing 16 GB storage. The medium sized iPhone, on the other hand, has even better storage capacity than these iPhones, which ultimately means that the customers will have no other choice but to opt for the additional storage.

Market experts are appreciating this strategic move of Apple Inc. (NASDAQ:AAPL). The company has offered its new phone in 16GB in order to push the customers towards its mid-range phone, which has a storage capacity of 64 GB. It is important to mention here that the customers can get the mid range phone by paying and extra $100 bucks.

Business Insider recently released a report that showed that 16GB iPhones are problem for most of the customers, especially if they want to use latest versions of iOS, for this software requires high disk space for even the routine tasks. It was further mentioned in the report that such a low disk space can restrict the everyday activities of the users, for instance, Facebook notification checking.

Cybart’s report showed that 16 GB iPhones will not be of much use to the customers whereas the 64GB iPhone is available at just $100 more; more and more customers will prefer to buy 64GB iPhone instead of the 16GB one. Consequently, the average selling price of Apple Inc. (NASDAQ:AAPL) will go up.  With low storage costs and high average selling price, the company will be seeing an increase of $3 billion in its revenues for the year 2015.

According to the reports of Cybart, Apple Inc. (NASDAQ:AAPL) would have reported total revenues of $44 billion if it had introduced its iPhone 6 with 32GB storage together with the 64GB and 128GB versions.  The revenues from the 16GB, 64GB, 128GB, on the other hand, will come to a total of $47 billion. The analyst’s report further showed that around 30 percent of the previous owners of 16GB iPhone will also shift to 64GB phones, thus driving the average price even higher.

According to the report of Cybart, it would not have mattered if Apple Inc. (NASDAQ:AAPL) had introduced 16GB and 32GB iPhones 6, for a number of buyers would still have downgraded their phones to 16GB tiers.
Coming to the stock price of Apple Inc. (NASDAQ:AAPL), the company, on the last trading day of December 23, 2014, started its stocks at a price of $113.13 and closed at a price of $112.54, after hitting the highest figures of $113.33. Apple Inc.’s (NASDAQ:AAPL) total market capitalization stands at $660.91 billion with a P/E (price to earnings) ratio of 17.5.

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