Feeds

Report: Apple seeking to raise iPhone 6 price by a HUNDRED BUCKS

'Well, that 5c experiment didn't go so well – let's try the other direction'

Build a business case: developing custom apps

Apple is reportedly talking with wireless carriers about pricing for its upcoming iPhone, but not about reinvigorating a stalling smartphone market by lowering prices, instead about raising the cost of its top-of-the-line handsets.

"Our checks indicate Apple has started negotiating with carriers on a $100 iPhone 6 price increase," investment banking firm Jefferies analyst Peter Misek wrote in a research note, reports the Investor's Business Daily

"The initial response has been no," Misek continued, "but there seems to be an admission [by wireless firms] that there is no other game-changing device this year."

Due to that lack of competition – which apparently includes Samsung's Galaxy S5 – Misek believes that Apple might be able to squeeze at least some of that price boost out of carriers – and, likely, consumers. Doing so, he reasons, would help Apple's projected iPhone 6 gross-margin slide, and by doing so counter some of the stock-price pressure that Apple is currently undergoing.

When Apple reported its most recent quarterly results in late January, the Wall Street moneymen spanked its stock price due to Cook & Co.'s relatively tepid revenue forecast. If Misek's "checks" are correct, Apple believes that the best way to boost those numbers is not to sell more cheaper phones, but to raise the prices of handsets that have been proven to have a high rate of customer loyalty when it comes to upgrade time.

Although Apple is far from being the global marketshare leader in smartphones – that honor goes to Sammy – its share of the smartphone profits is impressive. "Since the launch of the iPhone," writes Horace Dediu of Asymco, "the net profits earned by the collection of [smartphone market] protagonists shown was $215 billion. 60 per cent has been earned by Apple."

Apple is widely rumored to have two iPhones in its product pipeline: one with a 4.7-inch display that's said to be on tap for a fall release, and a 5.5-inch follow-on. Although Misek wasn't specific about the display size of the iPhone that Apple is shopping around to carriers, we'd bet that it's the smaller of the two.

After all, a 5.5-inch handset would venture into phablet territory, and we'd imagine Apple would want a higher premium for that bruiser than a mere hundred bucks. ®

The essential guide to IT transformation

More from The Register

next story
Reg man looks through a Glass, darkly: Google's toy ploy or killer tech specs?
Tip: Put the shades on and you'll look less of a spanner
So, Apple won't sell cheap kit? Prepare the iOS garden wall WRECKING BALL
It can throw the low cost race if it looks to the cloud
One step closer to ROBOT BUTLERS: Dyson flashes vid of VACUUM SUCKER bot
Latest cleaner available for world+dog in September
Samsung Gear S: Quick, LAUNCH IT – before Apple straps on iWatch
Full specs for wrist-mounted device here ... but who'll buy it?
Apple promises to lift Curse of the Drained iPhone 5 Battery
Have you tried turning it off and...? Never mind, here's a replacement
Now that's FIRE WIRE: HP recalls 6 MILLION burn-risk laptop cables
Right in the middle of Burning Mains Man week
Apple's iWatch? They cannae do it ... they don't have the POWER
Analyst predicts fanbois will have to wait until next year
HUGE iPAD? Maybe. HUGE ADVERTS? That's for SURE
Noo! Hand not big enough! Don't look at meee!
AMD unveils 'single purpose' graphics card for PC gamers and NO ONE else
Chip maker claims the Radeon R9 285 is 'best in its class'
prev story

Whitepapers

Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Backing up distributed data
Eliminating the redundant use of bandwidth and storage capacity and application consolidation in the modern data center.
The essential guide to IT transformation
ServiceNow discusses three IT transformations that can help CIOs automate IT services to transform IT and the enterprise
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.