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The storage upgrade tax: what makers charge for a GB vs what it costs

Apple charges about $0.78 per gigabyte to upgrade the storage on an iPhone, iPad or Mac at the base tier — roughly 13x the ~$0.06/GB that consumer NAND flash costs at retail. Across the tiers the upcharge runs $0.29–$0.78/GB, a 5x to 13x markup. Measured from US list prices in data/storage-upgrade-tax.csv.

The tax, by step

From data/storage-upgrade-tax.csv (US list, 2026-07):

Device Step Upcharge Per extra GB Markup vs flash
iPhone 16 128 → 256 GB $100 $0.78 13x
iPhone 16 Pro 256 → 512 GB $200 $0.78 13x
iPhone 16 Pro 512 GB → 1 TB $200 $0.39 6.5x
MacBook Air M3 256 → 512 GB $200 $0.78 13x
MacBook Pro 14 4 TB → 8 TB $1,200 $0.29 5x

The base-tier steps are the most expensive per GB, and they are the ones most buyers hit — the jump off the smallest storage option is where the markup is steepest.

Why this is the "tax"

Consumer NAND flash retails around $0.06/GB in 2026 (a 1 TB NVMe SSD is roughly $60). The maker's cost is lower still. So a $100 upgrade that adds 128 GB is charging $0.78/GB for something that costs a fraction of that — the extra is margin, not silicon. It is called a tax because there is no cheaper option: you cannot add storage to a sealed phone later, so the upgrade is priced as a captive one.

This is the device-side companion to the cloud storage price index, which shows the same thing as rent: storage you pay for once at a steep markup, or forever.

Method & honesty

  • Prices are US list prices, a snapshot on the measured date (measured_date column) — they change, and the CSV says so. Verify at purchase.
  • The comparison is to a reference flash cost of $0.06/GB (retail consumer TLC NVMe/UFS, 2026), stated as a reference point, not a claim about any maker's bill of materials. The markup is the upcharge-per-GB divided by that reference.
  • Apple-heavy on purpose: its storage pricing is the well-documented, stable case and the one people search for. Android makers generally charge less per GB, but their per-device upgrade pricing is less consistent, so it is left out rather than published approximately.

Generator: benchmarks/storage-upgrade-tax.mjs — edit the price table and re-run to refresh or add devices.