Consumers Willing to Pay an Extra $100 for a 5.5-Inch ‘iPhone 6’
According to Raymond James analyst Tavis McCourt, Apple’s rumoured 5.5-inch ‘iPhone 6’ model, which is expected to be released alongside a 4.7-inch version around September this year, will include a $100 price premium. Interestingly, McCourt’s survey data shows that consumers are showing an increasing willingness to pay the extra cash for a 5.5-inch iPhone (via MacRumors).
“Our June consumer survey points to continued growth in the willingness of iPhone users to pay $100 more for a bigger screened iPhone, with now a full one-third of survey respondents willing to pay a $100 premium,” he added. In fact, he added, “data seems to suggest meaningful demand for a larger screen, which should logically mean the iPhone 6-cycle will be strong for upgrade sales, which combined with modest contribution from wearables should cause a modest acceleration in revenue growth in fiscal 2015.”
In his research note, McCourt also praised the iPhone’s solid position in the smartphone arena, where it competes with Samsung and other device-makers using Google’s Android operating system. Raymond James, which has an outperform rating on AAPL, raised its price target to $102 from $86, arguing that Apple shares are poised to go higher.
Earlier this month, analyst Brian White suggested that Apple would start manufacturing the 5.5-inch ‘iPhone 6’ in August, and the 4.7-inch model will enter production in July, just in time for a September launch.