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Apple Negotiating $100 iPhone 6 Price Increase With Carriers, Analyst Says

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Apple has opened talks with carriers over a $100 iPhone 6 price increase, analyst Peter Misek of Jefferies claims (via StreetInsider). Apparently, the initial response from carriers was that they didn’t want to hear about any price increases, but the analyst believes this is about to change in view of the iPhone 6’s “game-changer” aspect. Misek goes as far as claiming that Apple may be able to obtain at least some of the proposed increase, which obviously would help the iPhone maker’s gross margin.

IPhone 6 Martin Hajek 640x480

“The possibility may at 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 comments. “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.”

Earlier last year, Susquehanna analyst Chris Caso took several factors into consideration and claimed the larger-screen iPhone 6 would cost up to $100 more.

Apple is projected to ship the iPhone 6 later this year, in September, but the rumour mill suggests there will be another device in the fourth calendar quarter as well. There are whispers about a 4.7-inch iPhone launching this fall and bigger, 5.5-inch models being released later, or maybe early next year.

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  • Kirk

    $100 price increase? Whoa apple.. If this is true, calm down!

  • Tim

    Only Apple would think (and will probably be rewarded) for bringing their screen sizes closer to industry standard, and then expect to be able to charge a premium for the gesture. The Nexus 5 has a 4.9″ screen and costs half of what an iphone does (try one for two weeks and you’ll probably like the user experience better as well). Microsoft and Apple once went head to head with PC’s, where Apple was initially dominant, but eventually lost the battle to the OS that ran on everything. Will this situation turn out any better in the long run? It’s not a rhetorical question, I’m asking.

  • iFone

    Rumours are just that…rumours. They are smart enough not to have a price increase, just because of the screensize. If they do it, it would because of that + other functionality that may add more value to the end consumer.

  • tHoj101

    For the average consumer who constantly wants more and more for less money, this is bad news, but for the market as a whole it’s a rather positive push. Android has over saturated the market with sub par phones offered at ridiculously low prices, and because of this consumers think that all companies need to make budget phones and devices to fit this obscure notion that technology in general is inexpensive. Show me an Android phone with fingerprint sensor, metal chassis, an app store stocked with over 500,000 apps, a high def display, and 64-bit processor, and then make it cheaper than the subsidized iPhone 5S (which is only $179 at most carriers – if not cheaper) – because you can’t. Yet Android handset makers scrape the bottom of the barrel and create the expectation for consumers that Apple needs to hit the same price points, even though Apple are using higher quality materials, and offer a more robust app ecosystem. Companies like Samsung are consistently cutting costs and using cheaper materials to meet these false expectations. So I’d rather see contracted prices shoot up (and perhaps make some companies beef-up their devices) then continue to see this perpetual ‘we can do it cheaper’ trend.

  • Dave G

    Nexus 5 is a very bare bones device with a terrible external speaker and even worse camera. I can’t comment on the durability but probably doesn’t come close the premium devices, namely the iPhone. I do know some people that could benefit from such a cheap solution, but I definitely have been spoiled with premium devices for several years now and would never consider it.

  • Riddlemethis

    HELL NO!! They have absolutely no idea how many people will run, not walk to Samsung and Android if they do something this insane. There is no way Jobs would ever allow this. If true, I think this would be start of the end of Apple’s empire.

  • Riddlemethis

    Or Apple has suddenly started to succumb to the ill effects of sniffing too much of their own poo that they lost almost all sense.

    In any event, I seriously doubt the larger screen size would cost that much more.

  • Riddlemethis

    Seriously, it’s a smartphone not a DSLR or P&S camera. I personally couldnt care much about the camera on smartphones.

  • Tim

    I use the external speaker for my morning alarm, and maybe message alerts. I definitely don’t use it to play music, and didn’t on my iphone 5 either, so I could care less how it sounds. The build quality doesn’t use the same premium materials as the iphone, but I believe the durabiliy is likely better since it’s lighter and the rubberized back is less affected by drops and scratches. The Nexus 5 initially had camera issues, but a lot of these were resolved with a software update. The camera probably isn’t as good as the 5s, but it’s better than my iphone 5 was. If I want to take really good pics, I use my Canon DSLR. I simply can’t justify paying $819 for a 32gb iphone 5S when my 32gb Nexus 5 was $399. That’s a $419 premium for a phone with a smaller screen. Yes, it does some things better, but so does the Nexus 5, and IMO enough things not to warrant owning an iPhone at this time. I hold no allegiances for anything other than quality though…and I’ll certainly consider switching back to Apple if they come out with something that justifies such a premium. I’m inclined to think that’s unlikely though.

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