You Can't See Apple's Most Lucrative iPhone Feature
Bloomberg Businessweek Middle East|October 16, 2018

The new 512GB storage chip could make the company $134 more per phone than the 256GB option

You Can't See Apple's Most Lucrative iPhone Feature
In the latest iPhones that went on sale on Sept. 21, the biggest upsell isn’t the wide-stereo speakers, the dual-lens camera, or the stainless steel accents. It’s the tiny Nand storage chip that lets you save all those photos in Portrait Mode.

The high-end XS and XS Max models unveiled earlier in September come with a 512-gigabyte storage option, twice as much as the previous maximum and enough to hold a couple hundred thousand photos or dozens of high-definition movies. That’s up from a maximum 256GB on last year’s flagship iPhone X, and 64 times as much as what the original iPhone had a decade ago. Apple Inc. charges customers a lot more for this storage than it pays suppliers, and it hasn’t reduced the markups for higher-capacity options or provided a way for customers to add storage later, even though component prices are falling sharply.

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