Could Apple get away with a $100 increase on the soon-to-released iPhone 6? Jefferies analyst Peter Misek thinks so.
According to Business Insider, Apple is negotiating a $100 increase with carriers who have not responded positively to the move. With no other device worth its name set for release, carriers may not have much choice, says Misek.
"The possibility may at first seem farfetched in light of investor concerns regarding possible carrier subsidy and handset price cuts due to smartphone saturation and lack of differentiation. 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 [subscribers] if they do not offer it," said Misek, according to CNET.
While increasing price at a time when high-end smartphone markets are saturating and when other phone makers are cutting down price may seem strange, Business Insider said Apple does not think its market functions the same way as the Android market. In fact, Apple wanted to originally sell the iPad for $400, but later realized people would pay $100 more, indicating that the buying pressures on its products are different from those of other markets.
According to Street Insider, much of the brunt of the price increase would be borne by the carrier, but there's the possibility that the consumer may opt for cheaper phones due to the growth of EIP plans. CNET explained that if a consumer buys the iPhone 6 through monthly installment plans and in the event the price increases, he would have to bear the brunt of the increase.
According to Business Insider the move is aimed solely at profits given that a $150 billion cash company like Apple seeks to increase $100 on its flagship phone.
