Apple Needs to Revamp Its iCloud Storage Plans

Apple launched iCloud in June 2011, maintaining a meager 5GB free storage limit ever since. Although this free offering has become rather insufficient over the past decade and a half, my focus today is on a more significant concern regarding iCloud: its paid plans.

iCloud Storage Overview

For quite some time now, Apple has provided options of 50GB for $0.99/month, 200GB for $2.99/month, and 2TB for $9.99/month. These rates have remained unchanged since their inception in 2017.

Prior to that, from 2015 to 2017, the $9.99/month plan offered just 1TB, with 2TB priced at $19.99/month. While it’s positive that Apple reduced the price for 2TB, the removal of the 1TB option created a gap in their storage line-up, which is where my concern lies. I’ll elaborate on that later.

Since the 2017 pricing has been set, Apple has added features to iCloud like Private Relay, Custom Email Domains, Hide My Email, and HomeKit Secure Video (for users with 2TB or higher). Additionally, in 2021, Apple rebranded its paid tiers as iCloud+.

In 2023, Apple recognized a growing demand for more iCloud+ storage. With the introduction of Apple One in 2020, it became known that users could purchase the Apple One Premier plan for $34.95/month (including 2TB of iCloud) and stack it with another 2TB iCloud subscription for $9.99/month, effectively providing 4TB in total.

While it’s unclear how many people subscribed to Apple One Premier purely for the extra iCloud storage, it likely wasn’t insignificant. Subsequently, Apple introduced new 6TB and 12TB iCloud+ options in 2023, priced at $29.99/month and $59.99/month, respectively.

However, these changes did not affect any of the existing iCloud+ tiers beyond the introduction of the new higher options. The tiers that were established in 2017 remain unchanged, with only the addition of some premium options for heavy users.

Apple likely greatly benefits from the three-tier structure (excluding the extreme tiers) currently offered. I have long advocated for a straightforward 1TB plan between the 200GB and 2TB options, but there is probably a strategic business rationale for why this hasn’t happened. Therefore, I propose a more straightforward suggestion.

My Suggestion

Instead of adding a new lower-tier option, why not modify the existing storage allocations? After nearly ten years of keeping the 50GB and 200GB plans stagnant, I believe it’s high time for a refresh. Technology progresses, and file sizes are ever-increasing. The current 50GB limit feels barely adequate for a typical iPhone backup these days.

Here’s my proposal:

• Free: 5GB (not ideal, but let’s set that aside for now)
• $1.99/month: 100GB
• $3.99/month: 400GB
• $9.99/month: 2TB

My suggestion for the 100GB plan is inspired by Google, which provides this amount for $1.99/month. Given that both Google and Apple charge the same $9.99/month for 2TB, this makes for a reasonable pricing reference.

Additionally, I propose a 400GB option for $3.99/month, which strikes a balance between offering more storage at an agreeable price without undermining the existing 2TB tier.

Some may argue that Apple intentionally maintains a significant gap between the 200GB and 2TB options to entice users to pay for more storage than they truly need. I don’t necessarily agree; often, customers reaching their 200GB limit will simply store less in iCloud, either by saving content locally or deleting items to free up space.

Conclusion

For many users, it seems like a long time before they might require 2TB of storage, so why commit to that expense now? My suggested pricing tiers would address this gap much more effectively, providing ample storage for modern needs.

When Apple first introduced these storage options, iPhone storage was only transitioning from 32GB to 64GB. Today, we’re looking at base storage options of 128GB and 256GB depending on the model, so it seems reasonable for iCloud tiers to evolve accordingly.

Do you agree with my proposed tiers, or do you have something else in mind? Many people might prefer an increase in the free storage limit, which would indeed be a welcomed change. I’d love to hear your thoughts in the comments.

Check out my favorite iPhone accessories on Amazon:

Follow Michael on: X/Twitter, Bluesky, Instagram