For years Apple has priced its flagship phone at the same price: $199. But that could change when the iPhone 6 arrives. One prominent financial analyst predicts that the device will cost $299, a premium he says Apple fans will be more than happy to pay for a larger screen and other new features.
Pacific Crest analyst Andy Hargreaves recently upgraded Apple’s stock from “sector perform” to “outperform” and set a $625 price target (up from today’s $533) based on the presumption that Apple will charge a $100 premium for its new handset. As Business Insider reported, the analyst cited the $299 Galaxy Note 3 as a precedent, which sports a 5.7-inch display.
The analyst doesn’t believe that Apple is going to debut two new iPhone 6 units as many rumors suggest–one at 4.7 inches and one at 5.5 or 5.7 inches. Instead, he’s predicting that Apple will release only a 4.7-inch model. While that screen size is considerably larger than the 4-inch iPhone 5s, it’s still small compared to other Android phablets.
Based on the supposed “Apple Tax” the company charges for its other products, including the $399 iPad mini and the $1,299 Retina MacBook Pro, it’s not that far fetched that the company would jack the price for a more robust iPhone 6. But we believe it’s more likely that a smaller iPhone 6 would cost $199 on contract and a larger model would fetch the $299.
Regardless of size, the iPhone 6 is expected to sport a very strong sapphire glass display, a fast new A8 processor and an upgraded 10-MP camera with a f/1.8 aperture. Apple is also rumored to place a heavy emphasis on fitness features with a new HealthBook app and an improved Maps experience with iOS 8.
Is all of the above worth $100 more than an iPhone 5s, and is Apple really willing to risk alienating some shoppers? We’ll probably have to wait until the fall to find out.
via Business Insider