iPhone 6 Production May Lead To Price Hike

By on
A staff of a China Mobile shop (R) explains a function of the iPhone 5s to a customer in Beijing
A staff of a China Mobile shop (R) explains a function of the iPhone 5s to a customer in Beijing January 17, 2014. Apple Inc is finally launching its iPhone on China Mobile Ltd's vast network on Friday, opening the door to the world's largest carrier's 763 million subscribers and giving its China sales a short-term jolt. Reuters

Another report says that Apple is on the go to manufacture around 70 million to 80 million units of the two upcoming iPhones which may lead to higher costs of goods and services. The mass production will start this coming August together with Apple's manufacturing suppliers - Foxconn, Pegatron and Winstronn.

Foxconn - the world's largest contract manufacturer for electronics reports that the net profit last 2013 increased because of iPhone's demand. The increase in profit was due to the release of iPhone 5s and iPhone 5c in September 2013. Foxconn earned more than 40% from Apple, which has sold 51 million units of iPhones, 26 million units of iPad and 4.8 million units of Mac at year end, NDTV reports.

In relation, Foxconn is expecting that the demand will surely increase based on past reports for iPhone events.

According to a Chinese news report (translated in English) which is spotted by G for Games, Apple's iPhone 6 order, ranging from 70 million to 80 million, could lead to a price increase for the smartphone.

"The predicted 5% to 10% hike in prices has been attributed to a possible drop in production of other smartphones as more facilities and production lines would be engaged in completing iPhone 6 orders on time, leading to reduced production and supply. One of the largest assemblers of iPhone, Foxconn, also makes devices for BlackBerry, Nokia, Sony, Motorola and other OEMs," said TimesofIndia.

According to reports, OEMs or Original Equipment Manufacturers with this new strategy will allow manufacturing firms to increase the value in making phones for other brands. These assemblers might demand a higher price from OEMs while focusing in the production of iPhones that will in turn lead to passing the costs to end-consumers.

A Report says that the two sizes of iPhone 6 - the 4.7 inches and 5.5 inches might be launched in two separate events. The 5.5 inches iPhone 6 will be launched after the 4.7 inches iPhone, which may fall on December together with the iWatch. The upcoming iOS 8 and OS X Yosemite may also be launched separately.

Join the Discussion