The iPhone is the phone of choice for millions of people worldwide, and with every release it’s getting better. Over the past couple releases however, Apple hasn’t been too radical with changes to the phone’s design, software, or size. It seems this time they are planning to make a pretty major change by bumping the size of the screen to 4.7″ inches or even as high as 5.5″ inches. Unfortunately however, it seems that screen size bump might also mean a bump in price.
U.S. smartphone owners are spoiled by carrier contracts which dramatically decrease the amount of money customers have to spend out of pocket for a new device. Contracts generally have high end, brand new flagship phones priced at $199 with older or lower end phones priced at $99 or below. Few phones ask $299 but it’s not completely unknown as we’ve seen popular phones such as the Galaxy Note 3 sell well for that price. Apple has always had the same pricing model selling their current flagship for $199 and last year’s model for $99 both with two-year contracts. This year though the company looks to up that price by $100. One analyst is claiming that Apple is negotiating with carriers to increase that price even though carriers are trying to hold firm at the current prices.
“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.”
Seeing that we are talking about the ever popular iPhone, it’s likely that if this analyst is correct, carriers will give in and allow Apple to increase the price of the phone. Hopefully we will see the rumored 4.7″ and 5.5″ models of the iPhone 6 priced respectively at $199 and $299 while the current iPhone 5S is priced at $99.
Are you worried by this? Would you pay $299 for an iPhone no matter the screen size?