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'

Secure remote control for conventional and virtual desktops

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. ®

Beginner's guide to SSL certificates

More from The Register

next story
Xperia Z3: Crikey, Sony – ANOTHER flagship phondleslab?
The Fourth Amendment... and it IS better
Don't wait for that big iPad, order a NEXUS 9 instead, industry little bird says
Google said to debut next big slab, Android L ahead of Apple event
Microsoft to enter the STRUGGLE of the HUMAN WRIST
It's not just a thumb war, it's total digit war
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Netscape Navigator - the browser that started it all - turns 20
It was 20 years ago today, Marc Andreeesen taught the band to play
A drone of one's own: Reg buyers' guide for UAV fanciers
Hardware: Check. Software: Huh? Licence: Licence...?
The Apple launch AS IT HAPPENED: Totally SERIOUS coverage, not for haters
Fandroids, Windows Phone fringe-oids – you wouldn't understand
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.