San Francisco, CA, United States (4E) – Even with a price tag more expensive than most smartphones out in the market, Apple is reportedly pushing to raise the price of the iPhone 6 by $100. According to Jeffries analyst Peter Misek, Apple is currently negotiating with phone carriers regarding the price increase.
While many see this as a serious misstep for Apple especially with cheaper smartphones in the market, Misek thinks it won’t affect demand.
“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. 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,” Misek commented via StreetInsider.
The $100 price increase would have to be split 50-50 by the carrier and consumer. The iPhone 6 is expected to have a base price of $199 — $249 for consumers with the split $50 increase.
Apple is expected to launch the iPhone 6 this year — the rumored 4.7-inch version. The Cupertino-based company is also expected to launch a 5.5-inch version of the iPhone 6 early next year.