About Apple Inc(AAPL.US) the predictions of each generation of iPhone are nothing more than the old three: higher-quality cameras and faster processors than previous generations, and "this is the best iPhone we've made so far," said Cook, CEO of Apple Inc.
Compared with the cool technology upgrades of other phones, the improvements to iPhone cameras and chips seem a bit boring. The real magic of these improvements lies in their impact on Apple Inc's profits. According to Zhitong Finance, unlike innovations such as FaceID, chip and camera upgrades have brought double benefits to the company: not only do consumers have to pay higher prices for new features, but these new features often require more storage space to be fully utilized. In fact, storage is an incredible "money printing machine", it is even Apple Inc's secret weapon.
The next generation of iPhone looks set to use this approach more deeply, and it is reported that in addition to camera upgrades, the new phone also has a higher quality ProRes video format and more chip updates. More information will be released in the coming weeks.
With each improvement in image quality, storage requirements will increase accordingly. The new photo format ProRaw, which Apple Inc added to iPhone last year, is 12 times larger than the standard JPEG. Larger video files will exacerbate this trend. This is especially bad news for those whose daily snapshots already take up dozens of GB of memory.
Consumers' demand for storage space has brought huge profits. It will cost $100 to increase the storage space of 128GB, which is unlikely to exceed $20 for Apple Inc. If you prefer to store data remotely, Apple's iCloud products enjoy similar profit margins. However, those who have chosen to buy the $1099 iPhone 12 Pro Max may not be too worried about spending more money to increase capacity.
Faster download speed and stronger processing power have the same demand effect. 5G allows you to download more data faster, but you need more capacity to store it. By the same token, some high-quality mobile games also need faster chip support.
Apple Inc's income is expected to grow 33% this year to a staggering $365 billion, of which only part of it comes from increased memory. But it shows that even without sensational new features or flagship products, shrewd investment in improving the right technology can double profits, with the average selling price of the iPhone jumping from $748 at the end of 2019 to $938 in March this year.
So while we wait for Apple Inc to show off his next epoch-making innovation in self-driving cars, smart glasses and other areas, the company is demonstrating the profitability of its memory games.