Washington: As Apple is eyeing to unveil its flagship smartphone Apple iPhone 6, new report recons that the device could cost $100 more than the iPhone 5S.
If this turns out to be accurate, it would be quite a bad move from Apple and it may draw undesired consequences. Apple devices are indeed widely popular, but they are already quite expensive and increasing carrier pricing may push away many potential customers.
The news comes from Jefferies analyst Peter Misek, who claims that carriers are currently refusing to negotiate on the $199 base price of iPhones. At the same time, Misek believes that operators may not be able to resist Apple’s push, especially since the iPhone 6 is expected to be a huge seller this year.
“While the initial response has been ‘no,’ there seems to be an admission among the carriers that there is no other game-changing device this year and the analyst thinks Apple can get at least some of the increase,” StreetInsider reports.
“The possibility may first seem far-fetched in light of investor concerns regarding possible carrier subsidy and handset price cuts due to smartphone saturation and lack of differentiation,” Misek told the publication. “But we think this general lack of differentiation could be the reason why Apple may be able to get a price increase. Carriers realize that the iPhone 6 will likely be the only headline-worthy high-end phone launched this year and that they will lose subs if they do not offer it.”
The iPhone 6 is one of the most highly-anticipated handsets of this year, especially since Apple is widely expected to shift to a larger display with its next-generation flagship smartphone. Reports indicate that the iPhone 6 may come in two large-screen variants, one with a 4.7-inch display and the other with a 5.5-inch or larger screen. The 4.7-inch model is expected to launch sometime in September, while the phablet variant may follow toward the end of the year or even early next year.
In addition to the larger display, the next-generation iPhone is also expected to boast a thinner design and pack Apple’s new A8 processor. Other rumored specs include 1GB of RAM, an improved camera with optical image stabilization (OIS), and the company’s Touch ID fingerprint scanner. The iPhone 6 should launch with the upcoming iOS 8 on board, sporting several improvements such as improved Maps, a new Healtbook app, a potential Siri API, and more.
Apple is yet to confirm any plans regarding its next-generation iPhone, but a price increase for the carrier subsidized version would certainly not come as good news for iFans. Even if this news proves to be accurate, there’s still a chance that carriers may be able to fight this $100 price increase for the subsidized handset.