According to reports this morning, Apple is negotiating with carriers in order to raise the price of the iPhone 6.
Peter Misek, analyst at Jefferies claims that Apple is negotiating a $100 increase on the starting price of the iPhone 6. The iPhone 5S currently retails at a minimum price of $199 from Apple’s website, sold on contract with AT&T, Sprint or Verizon. The unlocked device pricing starts at $649. If Misek’s reports are to be believed, Apple’s negotiations could see that price raised to $749. Hypothetically, the 64GB model could weigh in 50 bucks shy of a thousand dollars.
It would be unreasonable to despair immediately however, as Misek claims that the move has been met with negative responses from carriers unwilling to do the deal. It may well be true that carriers, mindful of scaring customers away from lucrative iPhone contracts with very high price tags might be encouraged, or even forced to absorb further subsidies to prevent a significant drop in the uptake of the next iPhone.
It’s highly possible that Apple has brought enough changes to the next iPhone to justify the extra $100, yet Apple’s highest rate smartphones are already more expensive than their heavyweight Android counterparts. With new phones from Samsung and HTC already released, Apple is the only remaining smartphone player yet to release a device this year. Peter Misek highlights that despite negative responses to the price increase, carriers have recognised that there will not be another “game-changing” device this year. That being the case it could be argued that Apple holds something of a monopoly over the second half of 2014, where many customers seeking a new smartphone will likely gravitate towards the next iPhone despite an inflated price tag.
For now, we can only hope that these rumours are simply rumours. A $100 increase on the price of the iPhone would not be a welcome spec increase when the next iPhone rolls around. If they are indeed true, it remains to be seen whether Apple has made enough progress to justify such a raise, and what course of action carriers will take in light of the move.
Would you ever pay $100 more for the iPhone 6? What would convince you to? Leave your thoughts and comments below, and be sure to follow me on Twitter @TiP_Stephen
Via: Business Insider