Apple maybe surely gearing up to launch the iPhone 6 since the 5 has already been stretched into 5S. Fans on the other hand must surely be looking forward to an even thinner iPhone, with a slim possibility of a much larger screen. But according to the recent rumors and speculations, the Cupertino, California based company is battling a critical decision about pricing.
Apple is contemplating a more than marginal price increase of $100 for the next iteration of the iPhone. Jefferies analyst Peter Misek has revealed, “Our checks indicate Apple has started negotiating with carriers on a $100 iPhone 6 price increase. The initial response has been no, but there seems to be an admission that there is no other game-changing device this year.”
In simpler terms, Apple is trying to pump up its revenues via the telecom service providers, who offer the device on 2 year contracts to their subscribers, at very low upfront payment. Though the exact reasons for the hike in asking price are not clearly known yet, Misek speculates it has something to do with long-term contracts Apple has with carriers around subsidies.
But carriers certainly won’t be happy with the price rise since it would be financially unviable to absorb the burden. Hence the price rise will eventually be transferred onto the end–buyer and this is certainly one of the most unpleasant tasks as Apple and iPhone fans may migrate to other more affordable plans with even better handsets, albeit from the Android family.
Apple is perhaps rightly worried about the growing prominence of Android and more importantly, the rise of large–screened smartphones dubbed as ‘Phablets’. Hence rumors are Apple will release two iterations of iPhone 6. One with a 4.7 Inch display and the other one with a 5.1 Inch display.
While Apple’s gamble on pricing the iPad Air $100 more than rivaling Android based tablets, paid off, will the company taste success by pricing the iPhone 6 a $100 dollars more than competing Android smartphones?