iPhone 6 may be $100 more expensive than predecessors claims analyst

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.

iphone-6-side

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

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  • Justin Carlson

    I think this would be OK if the base model had 32GB of storage instead of 16GB. Otherwise… no, it would not be good.

    • Stephen Warwick

      That’s something I hadn’t thought of actually. Would you expect 128GB at the top end mind?

  • Bill Thomas

    Im not sure about all of that Apple has to stay competitive with samsung the new s5 is 199$ and Apple has to compete with that and if they raise the price a hundred dollars more it may push more people to get the cheaper s5..the sony ps4 and the xbox 360 is prime example the ps4 is killing the xbox because its a 100 dollars cheaper.

    • AussieB

      It depends on what Apples goal is. The faithful are going to buy anything and everything Apple puts out. They’ve said before they don’t want to be #1 in units sold or need iOS to dominate. They need to keep making huge profits. They much rather have 30% of the market, for example, and make more money. They want to be the prestige brand. Im a target customer because I have a Mac and an Android but as each year goes on, its hard to make the switch. Im used to Android and don know how many features I will miss by having an iPhone. Not to mention what Ive invested (although I get everything for free with Google and Amazon credits). Starting from scratch is not easy, its time consuming, and you take a financial hit. A Nexus 5 at half the price combined with a prepaid phone plan, though has me paying about 60% less than my iPhone friends every month.

  • TheLord_ishere

    In this case, I might as well buy an extra MacBook. I wouldn’t pay an extra 100 if it doesn’t have that “game changing” tic. As justin said, maybe if it replaced 16gb model for 32gb, but even that plus a bigger screen wouldn’t justify a $749 tag. It’s nonsense

    • AussieB

      Thats a huge price when you consider Google put out a 32gb Nexus 5 at 399. Its the Apple tax and the HUGE markups. People will still line up to give their money away…But even if its 299 subsidized, thats a 50% price hike

      • RedGeminiPA

        Another “Apple Tax” drum beater. Yes, $749 would be a bit excessive, agreed. However, people like you fail to see what that “Apple Tax” gives you that can’t be found with ANY other competing brand. #1 is resale value – something NO OTHER BRAND comes close to.

        It’s no secret that Google likes to sell devices with little to no profit on the front end. They make their money by selling your data to the highest bidder via advertisers, something Apple doesn’t do. The sad part is, Google still makes way more money from ads on iOS devices than they do on their own products and services. That’s the sole reason I want VERY little to do with Google or its products.

  • AussieB

    Apple customers are going to pay whatever and get anything Apple tells them too. I don’t know that an Android customer is going to pay $100 extra for an iPhone. Its already a crime to charge an extra $100 for each storage bump. The funny thing , and Ive seen this when watching the Apple WWDC, is when Apple introduces a feature — even a feature that has been standard on other platforms for years – everyone in the audience freaks out and goes crazy with applause. Apple waits for others to pioneer, then copies. Nothing wrong with that as they often put their own spin but just an interesting note.

    • RedGeminiPA

      You haven’t been paying attention. Nobody said Apple pioneers many things, but nearly everyone can agree that when Apple finally does something, it works wonders compared to what’s already been on the market. That’s what makes Apple’s products special. They pay attention to detail and user experience, since the beginning of Apple, that nobody else cares much about. When Apple hits the nail on the head with the way something works, that’s when everyone starts copying Apple. It always takes Apple to show them the right way to do something. I guess you missed the latest round of Google documents that popped up in the Apple vs. Scamdung trial.

  • Kevin Donovan

    Found out about this 4 days ago. http://www.tikr.me/iphone-6-tbd/8821

  • RedGeminiPA

    If Sprint keeps offering little to no money down for Framily Plan customers, it won’t be too hard to digest. I really hope they start making 32GB standard, especially if they do get away with tacking on another $100 to the price.

  • Nico Villalobos

    Only if the base model had 32 GB the next would be 64 GB and the last would be 128 GB then that’s great.

  • jay

    it means the price of an iphone 6 64 gb will be around $800 and 128bg $1000… This is just getting insane now… Google nexus 5 -> $400 My choice is made!