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

[kdarling]

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.

You have a point, though. Go with Apple's ecosystem, and you're stuck with whatever they decide, hardware or price.

That said, I bet you'll love a larger phone. My hope is that they make sure it's curved on the edges, so it'll slip into pockets easier.

 

[samcraig]

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 hope you took my post tongue in cheek which is sincerely how I meant it. However there are times when other posters are so 'extreme' as to imply they really have no choices.

 

[Four oF NINE]

I hope you took my post tongue in cheek which is sincerely how I meant it. However there are times when other posters are so 'extreme' as to imply they really have no choices.

It's all good, if I weren't such a fan I wouldn't care what Apple did.

 

[cycomiko]

People who want an iPhone will still get one, given that Apple's the only company producing it.

I want an iphone, but if the unlocked price increases by ~150 (local prices), then I am more likely to look elsewhere... when you are already more expensive than your competition, there is less opportunity to squeeze out additional margin. Less chance consumers will absorb the cost, especially when the true growth markets are very price conscious.

 

[koban4max]

Eh. Windows Phones are looking pretty good these days. I'd either go there, or continually stay one iPhone generation behind in order to save some cash. Assuming, of course, that they're not providing something nice to justify that extra $100 I'll be paying.

Hell, I'm already 3 generations behind with my iPhone 4, and I don't feel any pressing need to upgrade.

if that's the case...you should be good to go.

 

[mccldwll]

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...

Do you understand why corporations exist?
As far as people not wanting "to pay this much money", I'm sure many in the car world would much rather pay Kia dollars for an Audi, etc. but, in the end, still willingly prefer to pay up for a quality product rather than settle for a cheap copy. Same thing here. You get what you pay for.

 

[definitive]

If true, then it's just typical Apple being greedy. There are some decent Android alternatives coming out now, that would make some Apple fans think twice about going with the 6.

 

[mccldwll]

If true, then it's just typical Apple being greedy. There are some decent Android alternatives coming out now, that would make some Apple fans think twice about going with the 6.

Greedy? Sounds like you believe BMW, AUDI, LEXUS, PORSCHE are all simply examples of greedy auto manufacturers. You actually believe something more expensive is simply an example of "being greedy"? Are you undereducated, or trolling?

 

[Liquorpuki]

Good way to offset margin compression

By 2018 I expect a $1200 iPhone, 2 year agreement required

 

[definitive]

Greedy? Sounds like you believe BMW, AUDI, LEXUS, PORSCHE are all simply examples of greedy auto manufacturers. You actually believe something more expensive is simply an example of "being greedy"? Are you undereducated, or trolling?

please don't do the car comparison, because if that's the case, then android phones > ios phones.

 

[richman555]

For those who haven't seen it before.

This is the Apple Ecosystem

 

[Lerxt]

They can easily justify a $50 increase in the 4.7" and a $100 increase in the 5.5". It would be reasonable given that it's bigger and inflation eventually has to be taken into account. I will pay for quality anyday.

The larger sizes are essential in the Asian market when iPhone is being hammered for it being to small for the market.

People are welcome to buy a plasticy Android if they want, along with the viruses and security holes. Kind of like the new Windows XP really.....

 

[sixrom]

No one (but Apple) likes higher prices, but I'm sure it will still have very strong sales.

I agree, Apple didn't become the ultra rich company by offering value. Steve Jobs worked long and hard programming people to believe the hype and pay premium prices for their vanity purchases. That Apple logo comes at a price.

 

[AppleScruff1]

They can easily justify a $50 increase in the 4.7" and a $100 increase in the 5.5". It would be reasonable given that it's bigger and inflation eventually has to be taken into account. I will pay for quality anyday.

The larger sizes are essential in the Asian market when iPhone is being hammered for it being to small for the market.

People are welcome to buy a plasticy Android if they want, along with the viruses and security holes. Kind of like the new Windows XP really.....

What's your experience with viruses on Android phones? From what I've read and heard, it hasn't been a problem.

 

[Frankied22]

I take that as a massive compliment seeing how often Apple gets it 100% right in the face of all the haters and naysayers spreading doom about the company.

Just like Ping and MovileMe were 100% right? Look, I love Apple hardware but they seriously need to get their **** together when it comes to services, especially cloud services. Google is destroying them when it comes to online services. Also, Apple has no clue how to do social nor does it seem like they want to.

 

[tjl3]

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...

That is true, I wonder about those consumers because Apple would definitely not be able to convert those. But I don't think it would affect those in the market for the new iPhone. Also, the Note 3 seems to be selling well at $749. I remember paying $801 for it after tax, so there is definitely some sort of market for a higher priced, larger screen iPhone.

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.

I think Apple could figure out an outlet for iPhone sales w/o Verizon and AT&T. As someone pointed out, they are probably not best suited to do this through their Apple Store, right now, but that can still change.

Can you imagine the backlash for carriers that stopped offering the iPhone? Day of launch: "Hi, I'd like to sign a new contract and buy a new iPhone..." "Um, we no longer offer it." Lost opportunity while they go and find a carrier that does sell it or go to the Apple Store where they can sign up for the most cost effective plan.

I want an iphone, but if the unlocked price increases by ~150 (local prices), then I am more likely to look elsewhere... when you are already more expensive than your competition, there is less opportunity to squeeze out additional margin. Less chance consumers will absorb the cost, especially when the true growth markets are very price conscious.

Not sure, but last I had checked, an unlocked:
iPhone starts at $649
M8 starts at $699
Galaxy S5 starts at $649.

 

[thehustleman]

Lol@only headline worthy phone.

Come on now


I haven't seen a headline worthy iPhone for a while now

 

[mantan]

That is true, I wonder about those consumers because Apple would definitely not be able to convert those. But I don't think it would affect those in the market for the new iPhone. Also, the Note 3 seems to be selling well at $749. I remember paying $801 for it after tax, so there is definitely some sort of market for a higher priced, larger screen iPhone.



I think Apple could figure out an outlet for iPhone sales w/o Verizon and AT&T. As someone pointed out, they are probably not best suited to do this through their Apple Store, right now, but that can still change.

Can you imagine the backlash for carriers that stopped offering the iPhone? Day of launch: "Hi, I'd like to sign a new contract and buy a new iPhone..." "Um, we no longer offer it." Lost opportunity while they go and find a carrier that does sell it or go to the Apple Store where they can sign up for the most cost effective plan.



Not sure, but last I had checked, an unlocked:
iPhone starts at $649
M8 starts at $699
Galaxy S5 starts at $649.

In the US Apple has zero incentive to move away from the common model. There is NO way the iPhone would have become as popular as it is without subsidies. Americans weren't going to pay $700-$800 for a phone...no matter how great it was.

Apple required the carriers to buy a certain amount of subisdized units..which basically guaranteed sales. (Remember the deal Sprint had to sign to get access to the iPhone.)

Though this is changing with AT&T pushing people to their new family plans that don't include subsidized phones. They are making it a bit more palatable by asking for no money down and stretching the payments out over 18 or 26 months.

Do you think Apple is interested in that model? He77 now. They'll want 100% of their cash up front - just like they always have.

Raising the price by $100 for the 'innovation' of the same screen size that other phones have is typical Apple hubris under Tim Cook. At least under Steve Jobs felt like there was something special about Apple products.

 

[paysdoufs]

I admittedly haven't read the entire discussion ;-)

- There are tons of competitively priced, competent smartphones out there.

- If you need a lifeline into the Apple ecosystem, an "inexpensive" iPad mini or iPod touch will do just that (and save you money in the long run).

- WP 8.1 is announced to be able to sync with contacts on iCloud. Probably one of the last roadblocks for many...

Go ahead Apple - play with fire!

 

[s2mikey]

Greedy? Sounds like you believe BMW, AUDI, LEXUS, PORSCHE are all simply examples of greedy auto manufacturers. You actually believe something more expensive is simply an example of "being greedy"? Are you undereducated, or trolling?

It depends on their profit margin. Apple has a notoriously VERY high profit margin which reeks of gouging. Some of their products are priced better than others and they are quality devices. However, they are very good and nickel and diming you to death with huge costs for memory upgrades and things like that.

The good news for me is that I hate cell phones so none of this concerned me at all. I hope they raise the price by 10x so it reduces the number of people staring at their phones all }#%^€£ day long.

 

[TallManNY]

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.

Well first of all, the carriers already pay Apple a lot for the phones and Apple makes a huge margin. So yes they have to accept some of Apple's pricing. Now does Apple have the ability to force them to choke on another $100? I don't know. They can't all decide not to sell iPhones. Customers would revolt and they would be hit with anti-trust collusion charges. If one decides to not sell iPhones, while the other big three buckle down and sell iPhones, the hold out will lose millions of customers. And they will be the customers with big data plans and possibly multiple lines and tablets.

The carriers already lose money every time they sell an iPhone. They sell the iPhone to a customer for $200, but they hand over the $200 and another $450 at the time of sale. That is the subsidy. This is where Apple may say they want to get $550. The carrier makes up for this over the two year contract where they collect over $2,000. So the customer makes them a nice profit. It just takes awhile.

Maybe the carriers will raise the upfront payment to customers. But we don't know for sure. That $199 price point has been pretty solid for a long time.

----------

Not sure, but last I had checked, an unlocked:
iPhone starts at $649
M8 starts at $699
Galaxy S5 starts at $649.

Last night I saw an ad for GS5 with Sprint contract for $0 and a free Galaxy Tab. What do you think that means? Is it just Sprint being desperate for customers?

Also there are GS5 two for one promotions out there. So while the price you quote is a price out there, I wonder how many folks are paying that.

 

[Chupa Chupa]

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 feel your pain. I'm not interested in a larger phone either, at least one so large it doesn't easily sink to the bottom of my front pants pocket. But if Apple goes that direction exclusively there are other smartphone options. I don't feel trapped in the least, you shouldn't either. It's not the apocalypse.

That said I think as there are at least as many people who like the current iPhone size as there are who want something significantly larger. I just can't see Apple abandoning such a large user base in the hope of capturing a different one. So really, no worries here.

Raising the price by $100 for the 'innovation' of the same screen size that other phones have is typical Apple hubris under Tim Cook. At least under Steve Jobs felt like there was something special about Apple products.

It's not for the "innovation," although none of us know what new the iPhone 6 will bring, but rather increased costs. GMC & Cadillac make SUVs that share the same platform, but the Escalade is more expensive because it's built with higher quality materials. Same can be said for lots of products from computers to TVs to mattresses.

 

[Chupa Chupa]

It depends on their profit margin. Apple has a notoriously VERY high profit margin which reeks of gouging. Some of their products are priced better than others and they are quality devices. However, they are very good and nickel and diming you to death with huge costs for memory upgrades and things like that.

The good news for me is that I hate cell phones so none of this concerned me at all. I hope they raise the price by 10x so it reduces the number of people staring at their phones all }#%^€£ day long.

1) Depends on their profit margin? No, it depends on whether consumers have a real option to go elsewhere. Otherwise it's the consumer willingly choosing to spend his or her money. BTW, you should take a look at any car options list from just about any car maker. Extras are $$$, just like Apple RAM.

2) If you don't care about cell phones why waste your time with this thread?

 

[applesith]

I agree, Apple didn't become the ultra rich company by offering value. Steve Jobs worked long and hard programming people to believe the hype and pay premium prices for their vanity purchases. That Apple logo comes at a price.

Yes, there is a huge market for pretty devices. Apple devices to work great as well.

 

[Warbrain]

how are you liking it? I love my Nexus 5

I switched back to my iPhone today because I was having major issues. All audio would pause for no reason at various intervals. Nothing I could do would fix it short of a restore. Upon restore I can't update Google Play services.

It's driving me nuts to the point where I put the phone away and switched back to my iPhone. If I go home and figure it out I may switch back but there's no guarantee.