Apple is tackling a global smartphone industry slowdown by raising iPhone prices, offering new digital services, and wringing more profit from parts that are becoming more commoditized. Selling more storage with iPhones is a powerful example of the latter strategy.
Ponying up for extra storage could lead iPhone users to spend more in other ways, too. People who’ve become accustomed to having what seems like a bottomless pit in their phones are likelier to cram the devices with more music, apps, movies, and subscriptions, boosting Apple’s services revenue. And Apple is charging anyone who wants an iCloud plan to back up their entire 512GB phone an extra $9.99 a month for 2 terabytes (2,000GB) of remote storage.
It’s really ridiculous that Apple doesn’t increase the basic amount of iCloud storage you get, especially for those who have multiple devices.
Source: Apple’s Most Lucrative iPhone Feature Is Storage – Bloomberg