Jeff Carlson, on why the iPhone 2014 lineup jumps from 16 GB to 64 GB:
In our briefing with Phil Schiller, Apple’s senior vice president of worldwide marketing, we brought up the question a lot of people were asking: Why offer a 4 GB iPod nano for $249 when a customer could get 30 GB of storage for just $50 more?
Schiller’s eyes lit up as he answered (I’m paraphrasing) that Apple was more than happy to sell the higher-priced product.
“Only $100 more” is an enormously powerful marketing strategy that Apple has used successfully for years.
So, that’s why the 2014 iPad lineup doesn’t have any of the new models with 32 GB, either. There’s still a lot of value there, but as with the base iMac and base Mac mini which are fairly underpowered, Apple is really giving you incentives to move up.
If you think 16 GB isn’t good for anything it could be worse. Amazon still sells an 8 GB Kindle Fire HD.