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Apple’s iPhone 6s marketing tricks seem to be working just fine

Published Oct 2nd, 2015 6:50AM EDT
64GB iPhone 6s Upgrade Program

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For at least one more year, Apple is selling its newest iPhone in 16GB versions, albeit the company has several iOS 9 tricks ready to compensate for the lack of additional local memory, and iCloud prices are now cheaper than ever. This marketing method, however, is still proving to be fruitful for the company, according to a recent survey. Similarly, the recently introduced iPhone Upgrade Program is seen as a successful launch for the enterprise.

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A study conducted by RBC Capital Markets seen by Apple Insider indicates that more buyers are choosing 64GB and 128GB new iPhones than last years. Looking at the financials behind Apple’s decision to go with a 16/64/128GB iPhone memory options rather than 32/64/128, reports have shown that Apple is practically pocketing billions in profits this way.

RBC asked 6,400 people about their iPhone 6s buying intentions with 51% saying they’ll buy a 64GB version while 16% chose the 128GB, model. The numbers are 48% and 12% higher than last year, meaning that more buyers are willing to spend at least $100 extra on the iPhone, to avoid any storage issues. Interest in the new 16GB iPhone declined from 40% last year to 33% for the iPhone 6s.

The company also found out that one in five respondents plan to sign up for the iPhone Upgrade Program. Apple this year launched its leasing/upgrading program that rivals similar initiatives from carriers. Even if more expensive, Apple’s program comes with AppleCare+ protection and gives buyers access to an unlocked handset, with prices starting at $32/month for the 16GB model.

RBC noted that 20% out of an assumed U.S. installed base of approximately 200 million units could contribute $0.15 to EPS.

Chris Smith Senior Writer

Chris Smith has been covering consumer electronics ever since the iPhone revolutionized the industry in 2008. When he’s not writing about the most recent tech news for BGR, he brings his entertainment expertise to Marvel’s Cinematic Universe and other blockbuster franchises.

Outside of work, you’ll catch him streaming almost every new movie and TV show release as soon as it's available.