iPhone 6 Price $100 More Expensive Under Contract—Analyst
By Kristin Dian Mariano | April 15, 2014 4:17 PM EST
iPhone 6 price could be more expensive by $100 under a contract with carriers.
Business Insider cited Jefferies analyst Peter Misek saying that Apple is already in talks with carriers about the price of its next flagship phone. Although carriers initially said no, there is a chance that they would give in to the company's demands with the iPhone being "the only phone that matters this year," the report continues.
iPhone 6 Concept
The reason for the price hike is said to have something to do with Apple's long-term contracts with carriers around subsidies, notes Business Insider. However, another report, this time from Investors.com, points to easing worries over profit margins as being the reason for the price hike of $100.
Telcom networks subsidise the retail cost of the iPhone and make it up over the course of 2-year service contracts. If they agree with the price hike, they could either increase the price of the handset or pass the higher cost onto customers' monthly payments. However, carriers have yet to make a final decision on the matter.
A higher price seemed logical if the company will release a smartphone under the phablet category, notes an NBC Bay Area report. The repot adds the price hike of $100 for the upcoming iPhone 6 will be a tough call for Apple, especially as there is a possibility that the price increase may lower sales and decrease the company's revenue overall.
The iPhone 6 is reportedly coming with two variants. According to a report from Reuters, Apple is working an iPhone with a 4.7-inch screen panel and another with a 5.5-inch display. Other rumoured features of the handset, which are yet to be confirmed by Apple, include a faster A8 processor, iOS 8 and TouchID fingerprint sensor.
Likewise, Apple has remained mum regarding the iPhone 6 release date. Speculations point either to a June 2 announcement or September and October. According to AppleInsider, Sun Changxu, a Chinese analyst, has pegged the iPhone 6's debut in June during Apple's Worldwide Developers' Conference. The event starts on June 2. However, a rumour caught by 9to5mac points to a September/October release date for the 4.7-inch variant while a September launch for the 5.5-inch variant.
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