why does storage capacity makes such a difference in pricing devices when the difference between 128gb and 256gb SD cards is only ~10$?

Question

why does storage capacity makes such a difference in pricing devices when the difference between 128gb and 256gb SD cards is only ~10$?

In: Economics

Answer 1

The difference in pricing for devices with more storage is not just about the cost of the memory itself. While the production cost difference between 128GB and 256GB is small, companies charge more for added storage to increase profit margins. People are willing to pay for the convenience of built-in storage, and higher storage options are often viewed as premium, allowing companies to set a higher price even though the actual cost difference is minor.