An analyst claims that a bump in price for iPhone 6 won’t sway fans who are “insensitive to price.”
One can not rely on analysts’ predictions. They may hit the mark sometimes, but often they’re just grasping at straws. A new prediction suggests that Apple is going to increase the iPhone 6’s subsidized price, but according to the analyst, iPhone fans won’t care.
It goes without saying that the iPhone has a significant fan base. The day a new iPhone is released, people line up for hours outside Apple retail stores just so they can buy it. In fact, people start lining up days before the actual release so that they have a better chance of heading in the store early when the day finally comes. Now the world looks towards Apple to shake up the iPhone this year, but is it possible that apart from bumping up the display, Apple may bump up the price as well?
Recent rumors suggest that two iPhones will be launched this year as well. 4.7 inches and 5.7 inches are the rumored sizes that have been agreed upon. The analyst doesn’t clarify which particular model he’s talking about. Pacific Crest analyst Andy Hargreaves claims that Apple is going to increase $100 on the iPhone 6’s subsidized price. The base model currently goes for $199.99 with a two year service contract on major U.S. carriers, iPhone models are only differentiated on amount of storage. This means that each model would get a $100 increase. If the 16GB iPhone 6 is sold for $299.99, this would mean the 32GB iPhone 6 will come with a $399.99 price tag.
Hargreaves assumes that this won’t have a significant effect on sales. He holds the view that iPhone customers don’t really care about the price, implying that for them its much more important to own an iPhone than care how much it sets them back. There are plenty of smartphones in the market that start for $299.99 subsidized, so its not like Apple is going to venture into uncharted territory.