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'

The Power of One Brief: Top reasons to choose HP BladeSystem

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. ®

Using blade systems to cut costs and sharpen efficiencies

More from The Register

next story
Report: American tech firms charge Britons a thumping nationality tax
Without representation, too. Time for a Boston (Lincs) Macbook Party?
Child diagnosed as allergic to iPad
Apple's fondleslab is the tablet dermatitis sufferers won't want to take
Microsoft takes on Chromebook with low-cost Windows laptops
Redmond's chief salesman: We're taking 'hard' decisions
For Lenovo US, 8-inch Windows tablets are DEAD – long live 8-inch Windows tablets
Reports it's killing off smaller slabs are greatly exaggerated
Cheer up, Nokia fans. It can start making mobes again in 18 months
The real winner of the Nokia sale is *drumroll* ... Nokia
Seventh-gen SPARC silicon will accelerate Oracle databases
Uncle Larry's mutually-optimised stack to become clearer in August
prev story

Whitepapers

Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.