Apple Reportedly Negotiating with Carriers for $100 Price Increase on iPhone 6

[zone23]

People can be cute with threats to abandon iOS and switch to Android, but we know you're not going to do that. So what if you have to pay $100 more for the best smartphone on the market later this year? You'll pay a whole lots more if you switch to another platform and have to buy all your apps, books, movies and tv shows on a different platform. That's the lock-in baby, and hundreds of millions of iOS device owners are locked in for good.

So it'll actually cost you more to switch to Android. Add in all those nasty security risks and subpar user experiences and are you still thinking that $100 price rise is not worth paying?

Bottom line a profitable Apple is good for all of us. It ensures the team can continue investing in and creating best of breed products across multiple categories that thrill us all.

I'll be happy to pay $100 for the new iPhone later this year, and I'm sure 99.99% of current iPhone owners will feel the same.

If Apple has this mentality then they will loose a lot of iPhone users. I can easily download all my music and re-match with Googles service. Apps? Well I can buy my apps again @ 10 for $10 (.99 cents each) and since I came from android I already own most if not more than I do on the iPhone. I don't do movies so that's a none issue and I think with services like Netflix people are buying a lot less. You can still download your movies and put them on an Android phone.

Now with that said do I want to switch to Android NO WAY! but a 32gb was $299 now they are rumoring that it will be $399? I'm not paying $399 when I can get LG G2 for $99 bucks. I can get everyone a new phone for what one iPhone cost.

Lets just hope this rumor is BS. Don't think that people wont switch they will look at Blackberry.

 

[tjl3]

I doubt tens of millions would buy the phone for $750+ unsubsidized as the lower percentage of iPhone sales in the majority ofcountries without subsidies currently shows. If AT&T and Verizon stood firm together, what will the customers do? Leave for T-Mobile and Sprint? They take what is offered, buy the phone outright or switch to a carrier that can't compete with their networks. Like Apple's philosophy, take it or leave it. I doubt that this will happen either, but if it did, it will hurt Apple, IMO. Verizon did just fine when the iPhone was an AT&T exclusive. If AT&T and Verizon both dumped the iPhone, Sprint and T-Mobile would never be able to pick up the slack. Sprint's network leaves much to be desired in many parts of the country, not to mention the slowest data speeds overall.

The US is moving toward unsubsidized phones, Verizon is the last to get on the bus. Time will tell if they do or not. But as has been pointed out earlier, this will hurt all high priced phones, not just the iPhone. But then it makes it easy to see why the majority of the world uses those "crap Android phones" as so many here like to call them.

I honestly don't think $100 would be a huge deterrent. We're talking about a $750 base priced iPhone against a $650 base priced Galaxy S. If you are in the market for an iPhone, I don't see why you would suddenly settle for the second best if iPhone is at the top of your list. Besides, someone will figure out some method to financing it through the Apple Store. And even if Verizon and AT&T stop selling iPhones, it doesn't mean you can't purchase one and take it there. It isn't like support for GSM and CDMA will suddenly stop.

"The US is moving toward unsubsidized phones..." But they're financing them now, it's just the same to the consumer. The benefit of having iPhone at a carrier store is the ability to close in the store or retain a customer versus letting them walk to the Apple store and possibly paying for your competitor's service.

 

[decimortis]

Samsung fan huh?

Totally. As you can see by my signature.

D.

 

[samcraig]

I honestly don't think $100 would be a huge deterrent. We're talking about a $750 base priced iPhone against a $650 base priced Galaxy S. If you are in the market for an iPhone, I don't see why you would suddenly settle for the second best if iPhone is at the top of your list. Besides, someone will figure out some method to financing it through the Apple Store. And even if Verizon and AT&T stop selling iPhones, it doesn't mean you can't purchase one and take it there. It isn't like support for GSM and CDMA will suddenly stop.

"The US is moving toward unsubsidized phones..." But they're financing them now, it's just the same to the consumer. The benefit of having iPhone at a carrier store is the ability to close in the store or retain a customer versus letting them walk to the Apple store and possibly paying for your competitor's service.

It will be interesting. Fact is - I know a lot of people that have opted for an older model phone to get it for free or ~$49/$99 vs $199. Now as you get more expensive, the % difference is less. But $100 is still $100 and could be used for a case, or other accessories...

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In my opinion it is worth an extra 100 dollars, imagine not ever having a single scratch on your phone? No more screen covers, worrying about keys being in the same pocket of my phone. I know how expensive this technology is and how it would differentiate the iphone even more.

So you know for a fact that you won't ever have a single scratch on your phone? And that the phone's screen is what will have Sapphire?

If both things are certainties and you find value in that worth $100 - more power to you. I don't think I do.

 

[Chupa Chupa]

Funny how there isn't enormous resistance to paying $529 for a iPad mini retina w/ LTE but people here are barking about paying $499 for a 5.5" iPhone.

Also, a person w/ a subsidized iPhone will pay a couple thousand in subscriber fees but an extra $100 for hardware -- hardware that can be later sold -- is what people want to rant about. Odd.

The truth is though that with the current U.S. Carrier plans, phones are not really bought anymore, the are effectively leased, though not advertised that way. The terms of the plan are that you turn in your phone every year for a new one, so if it quacks like a duck, walks like a duck, looks like a duck, it's likely a duck. So $100 can be amortized in a way the consumer barely feels it, certainly to the point it doesn't push them to another brand if it's what really captures their heart.

Price isn't the big hurdle for the iPhone 6. Making sure there is a size for everyone is.

 

[Dalgarnif]

Well, if they raise price another $100 I will definitely looking at Android phones. I love my iPhone and have all practically every other Apple product but this is just too much for not that big of a deal.

 

[kupkakez]

Both the GS5 and the HTC One M8 are $300.

I didn't pay $300 for my GS5...

 

[MisakixMikasa]

But honestly, aren't they already greedy with the prices they charge for storage in all of their iDevices and also for RAM on the Mac side? Maybe they will test the market and see what happens with a price increase, if there is massive resistance, they can always drop prices like the vendors did with the 5C. They could make 32GB standard and raise the price to $299 and it would be in line with their current pricing and still keep huge profit margins.

I think sudden price drop will have negative impact to Apple as brand. I do not recall one time Apple drop the price to their current product. They maybe have price drop when they announcing the product, but they never dropped the price when the product is on the market.

People would read sudden price drop as low sales of iPhone and investors would read as signal of wake Apple

 

[TallManNY]

So you are implying that the carriers should just simply 'lose' $100 on every iPhone they sell over what they get know?

Yeah that'll never happen, YOU will pay the $100 increase.

Yes, that is what I'm implying. Carriers want you on two year contract. They will keep that price maxed out at $199 for the top of the line iPhone (lowest memory), just like it has always been. We know that the carriers pay Apple much more than $199 for the phones that they sell to customers. Maybe Apple is going to raise that price. What carrier can say no? Their best customers use iPhones. They often have tablets and multiple devices as well. AT&T and Verizon's service is about the same (both pretty good and LTE for the vast majority of the US population). So switching is easy. If one of them doesn't offer the next iPhone, they will lose millions of customers. And keep in mind, even if they pay more for the phone, I'm sure an iPhone customer over the course of a two year contract is still going to be very profitable.

I don't know if Apple can push them for $100 increase. That seems a lot. And this is just a rumor. But Apple might be able to push them hard. If they see the GS5 with a "meh" launch and the HTC One as not selling well either, and both of these phones have just launched. If there are no other top flagships in the pipeline for the rest of the year. Then yes, they may feel like come September Apple is going to be holding all the cards.

 

[samcraig]

I think sudden price drop will have negative impact to Apple as brand. I do not recall one time Apple drop the price to their current product. They maybe have price drop when they announcing the product, but they never dropped the price when the product is on the market.

People would read sudden price drop as low sales of iPhone and investors would read as signal of wake Apple

Except with the original iPhone. They dropped the price $200. And because of backlash - they gave customers $100 back who had already purchased it.

 

[mccldwll]

Well, if they raise price another $100 I will definitely looking at Android phones. I love my iPhone and have all practically every other Apple product but this is just too much for not that big of a deal.

1. You know it's true?

2. If true, you know that whatever might drive a first ever price bump for an iPhone "not that big of a deal"?

With such amazing clairvoyant certainty, you should try the stock market........or roulette.

 

[nexusrule]

Smaller than the iPhone's keyboard at 3.5" (screen) or smaller than the iPhone at 4"? Both of those keyboard's key sizes were/are "perfect" you know.

They become smaller, period. Doesn't depend from the manufacturer or device it's how our world's physics work.

 

[Chupa Chupa]

Well, if they raise price another $100 I will definitely looking at Android phones. I love my iPhone and have all practically every other Apple product but this is just too much for not that big of a deal.

If using an iPhone isn't that "big of a deal" to you but $100 is then why don't you already own an Android phone? Other "luxury" products -- and at this point the iPhone is in the affordable luxury category vis a vis cheaper Andoid phones that do pretty much the same thing -- go up by much greater $ amounts all the time to no ill effect. I would expect a bigger phone to have a commensurate price tag.

 

[OllyW]

I think sudden price drop will have negative impact to Apple as brand. I do not recall one time Apple drop the price to their current product. They maybe have price drop when they announcing the product, but they never dropped the price when the product is on the market.

People would read sudden price drop as low sales of iPhone and investors would read as signal of wake Apple

Don't you remember the $200 price drop of the original iPhone?

https://www.macrumors.com/2007/09/05/8gb-iphone-price-drop-4gb-iphone-discontinued/

 

[apolloa]

Yes, that is what I'm implying. Carriers want you on two year contract. They will keep that price maxed out at $199 for the top of the line iPhone (lowest memory), just like it has always been. We know that the carriers pay Apple much more than $199 for the phones that they sell to customers. Maybe Apple is going to raise that price. What carrier can say no? Their best customers use iPhones. They often have tablets and multiple devices as well. AT&T and Verizon's service is about the same (both pretty good and LTE for the vast majority of the US population). So switching is easy. If one of them doesn't offer the next iPhone, they will lose millions of customers. And keep in mind, even if they pay more for the phone, I'm sure an iPhone customer over the course of a two year contract is still going to be very profitable.

I don't know if Apple can push them for $100 increase. That seems a lot. And this is just a rumor. But Apple might be able to push them hard. If they see the GS5 with a "meh" launch and the HTC One as not selling well either, and both of these phones have just launched. If there are no other top flagships in the pipeline for the rest of the year. Then yes, they may feel like come September Apple is going to be holding all the cards.

I think you need to remember, without carrier support the iPhone is nothing more then a glorified iPod Touch. They can all tell Apple they refuse to raise the price Increase and Apple will have no choice but to accept.
And another thing is if a carrier could sell a million base iPhone 6 models, in what business sense is it that they will happily lose $100 on each of those phones? 100 million dollars of money simply given to Apple, no it doesn't work like that and the consumer will cover the cost increase.

 

[AppleScruff1]

I think sudden price drop will have negative impact to Apple as brand. I do not recall one time Apple drop the price to their current product. They maybe have price drop when they announcing the product, but they never dropped the price when the product is on the market.

People would read sudden price drop as low sales of iPhone and investors would read as signal of wake Apple

The original iPhone price was dropped right after release and we saw various retailers dropping the price of the 5C right after release. Even the 5S could be had for good deals during the Christmas season, but granted, these weren't official price drops by Apple.

 

[rumz]

I would accept a price increase if they double the flash memory. 32gb should be the base model...

I wouldn't. They've historically bumped the storage without bumping the price, and the higher tiers for higher storage are mostly gravy. The HTC One I bought a year ago cost less than $600 at launch AND included 32gb of storage (granted Android + Sense probably took a tad more space than iOS 6 did at the time, but I still ended up with a lot more usable storage than a 16gb iPhone would have). Start the base at 64gb and then we're talking.

There's have to be something else pretty unique and cutting edge to justify another $100 on the base model (like some are saying, iPads are already cheaper than iPhones.)

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So Apple is going to MAKE me get a larger phone whether I want it or not?

That's just great.

We don't know for sure at this point. But suppose the 6 is a larger phone and no other new phones are introduced. Then yes, to have the latest and greatest, you'd have to get a bigger phone. Otherwise, I don't feel like Apple is even taking full advantage of the A7's raw horsepower at this point, the 5S will be an attractive device for a while. (or the 5Cs or whatever the next incarnation of the 5s is, if they do what they did with the 5C.)

 

[Mackan]

Apple has so much money they don't know what to do with it, yet they consider raising prices? Hmm... I guess the only reason to keep their stock price up. But it's a gamble. I don't think people want to pay this much money...

 

[MisakixMikasa]

Except with the original iPhone. They dropped the price $200. And because of backlash - they gave customers $100 back who had already purchased it.

Don't you remember the $200 price drop of the original iPhone?

https://www.macrumors.com/2007/09/05/8gb-iphone-price-drop-4gb-iphone-discontinued/

The original iPhone price was dropped right after release and we saw various retailers dropping the price of the 5C right after release. Even the 5S could be had for good deals during the Christmas season, but granted, these weren't official price drops by Apple.

Oh, Yes, Stupid me. I forgot that. Long time ago...

But still, that does not happen that often...at least not by Apple.

 

[kupkakez]

Apple has so much money they don't know what to do with it, yet they consider raising prices? Hmm... I guess the only reason to keep their stock price up. But it's a gamble. I don't think people want to pay this much money...

I wouldn't want to pay an extra $100 for the iPhone screen size the way it is or even at 4.7". I would pay an additional $100 for a 5.5 inch iPhone, though.

 

[samcraig]

So Apple is going to MAKE me get a larger phone whether I want it or not?

That's just great.

I love this post. Why?

Because it shows how powerful Apple is that they can MAKE you do whatever they want. I'm going to help you though. Google "Free Will" It's going to be quite the eye opener!

 

[Chupa Chupa]

So Apple is going to MAKE me get a larger phone whether I want it or not?

That's just great.

Hmm. I must live in a state where law enforcement is on the Apple Mafia's tail because while I do willingly buy lots of Apple products I find appealing, but also non-Apple gear too, I've never woken up with a decapitated PC next to me in bed. But, I agree, if I did I'd high tail it to the Apple Store & buy the most expensive iMac in stock, even though it would be of no use to me. /Sarc

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This would be a PR nightmare for Apple if it's true. The media would destroy them. Sales would plummet.

Yes, just like when BMW renamed the 3 series coupe to the 4 series so they could raise prices by a few grand. 4 series sales plummeted and it was a PR nightmare. Oh wait, no it wasn't. There was a bit of loyalist grumbling but then sales were as good as ever.

 

[nia820]

Well if they really are increasing the screen size that makes sense. $299 is still a deal compared to other countries where the iphone cost $700 +

As long they don't increase the unlocked price, i'm fine

Now don't get carried away. Knowing apple, they'll probably up the price to an additional $200 for unlocked devices. But they will still get my money.

 

[Four oF NINE]

I love this post. Why?

Because it shows how powerful Apple is that they can MAKE you do whatever they want. I'm going to help you though. Google "Free Will" It's going to be quite the eye opener!

Hmm. I must live in a state where law enforcement is on the Apple Mafia's tail because while I do willingly buy lots of Apple products I find appealing, but also non-Apple gear too, I've never woken up with a decapitated PC next to me in bed. But, I agree, if I did I'd high tail it to the Apple Store & buy the most expensive iMac in stock, even though it would be of no use to me. /Sarc

yeah, okay guys.. I get it, I was a bit over the top with that post, but the point is that if someone is invested in the ecosystem and isn't interested in other platforms, they're sort of stuck. Not that I'm complaining too much. Okay, maybe just a bit. But I'm not at all looking forward to a larger phone.

 

[D.T.]

yeah, okay guys.. I get it, I was a bit over the top with that post, but the point is that if someone is invested in the ecosystem and isn't interested in other platforms, they're sort of stuck. Not that I'm complaining too much. Okay, maybe just a bit. But I'm not at all looking forward to a larger phone.

I totally understood what you were saying. Of course, you’re not forced at sword-point by Apple Ninjas to buy the next phone, but there are highly compelling reasons to stay with a brand/make/model that may require you to adopt (or relinquish) an attribute you love/hate for the overall benefit.

If the new C7 [Corvette] wasn’t offered in yellow, I’d day “I guess GM is going to force me to buy a black/red/white/silver Corvette”. Of course they’re not, I don’t have to give up my current ride, but a new one, if I want the pleasure of ownership of a faster/better/improved vehicle, would have to be done at the expensive of yellow.