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

[ThisIsNotMe]

Instead of negotiating a $100 decrease to stay competitive, Apple chooses to go the opposite direction. Then again, why am I surprised with this post Steve Jobs leadership???

 

[charlesdayton]

so, first they say in a presentation that the price of their phones is to high, and then they make one that's even more expensive. #doesnotcompute

That's the nature of rumors. They contradict themselves and make no sense. But they are fun to read.

Never take rumors too seriously.

 

[richwoodrocket]

Maybe this will steer people to buy a lower cost option if it's true.

 

[Georgij]

I don't mind the 100$ price increase if it will have following:
* Sapphire glass
* Amorphous metal (not having high expectation for that)
* At least 32 GB storage (which should be a standard today)
* 2GB RAM
* A8 that is faster and clocked higher than the 4-inch model just like iPad Air and iPad mini with A7 (if they will release 2 versions in fall)
* 802.11ac or MIMO
* And the some nice iOS 8 features that are made for bigger screen

 

[Phonzoxd]

The only time this might be fine is if they double the space. Like make the base model 32 GB for $300. This is actually what they did with the iPod touch 5. They got rid of the 8 GB. But if they are just going to raise the price and not the storage, apple can say bye to me!

I was gonna get a 32GB anyways for the Iphone6, so as long as the base storage increases im OK with this.

But if I gotta pay $300 for a 16GB phone, I'll stick with my 5S thank you very much.

 

[LordVic]

The iPhone 5s off contract is $650. Comparable off contract Android devices are $700 (HTC One M8; Galaxy S 5). This gives Apple wiggle room upwards in price. Yes, some consumers will complain but people would still complain even if Apple gave iPhones away with no strings attached.

While I agree that the flagships should be about equal in price, it's not unreasonable to see why there's a slightly higher price for devices like the HTC M8 or the S5.

you see all those features in the HTC and the Samsung? That very VERY long laundry list of things that they can do? While most here call them "gimmicks" every one of them requires some form of r&d, then actual production. It costs more because there are far more actual THINGS inside most of the competition.

Whether it matters to you or not is irrelevant to the argument btw. I'm just giving an example of why the Android flagships tend to cost more than the iPhone. things like those large 1080p screens, the larger batteries that use a lot more materials. The hundreds of additional features(gimmicks) that Apple doesn't have.

 

[Deepshade]

That much for a phone.

Get a life.

 

[maflynn]

It's possible that they are working with exotic manufacturing processes like that liquid metal and sapphire glass, which is fairly expensive in terms of R&D and manufacturing, and so will jack up the price of the iPhone for now.

People don't care about exotic manufacturing process, they care about spending money and getting value for that money. So far its hard to tell about the value (being rumors) but hopefully apple will have a lot to show for that increase.

 

[Smeehehe]

What if the 4.7" phone keeps the $199 price, and the 5.5" costs $100 more?

That seems fair to me. I have no interest in a 5.5in phone anyways. I'd expect the 5.5in to cost more anyways.

 

[mnemonicpoet]

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

What I don't understand is why carriers are opposed to increasing the price by $100? Maybe my reading comprehension is poor - but does this mean the iPhone is going to cost $100 more overall, Apple is actually asking carriers to subsidise it less (good for carriers, right?), or they are demanding $100 more from carriers, who are then forced to absorb the difference?

Incredibly well said! I also hope Apple doesn't increase the price, not that it'll stop me from getting it.

 

[Dorfdad]

I know I am going to take a lot of crap on this forum for saying this, but if this is true than #^F* the iPhone. Yes it's the dominant ecosystem. Yes it's been the trend setter for years now however I will not be buying one. $100.00 more when the competition is getting better and better offering bigger sizes, more memory and storage, and much cheaper! Crazy...

In all those recent court cases they mentioned Apple was aware ad concerned about consumers wanting bigger screens and reduced prices and they want to raise the price!?

I get it alot of people will jump on it regardless, but 5 years and I am ready to switch Android is now on par and in some cases better than iOS which has become stagnant.

I can afford to upgrade yearly with Android, and all the apps are on both systems- minus some games (which is the only real exclusive feature)..

I hope this is wrong I have alot invest in Apple over the years, and it will be a pain but Im not paying $299.99 for upgrades..

I wonder if anyone else feels the same??

 

[LordVic]

People don't care about exotic manufacturing process, they care about spending money and getting value for that money. So far its hard to tell about the value (being rumors) but hopefully apple will have a lot to show for that increase.

Also, when you're sitting on what? 100B in cash reserves and 13B in profit a Quarter over the last few years.

You can afford to swallow some of that R&D for a few quarters. Jacking the price at this point just seems greedy.

They need to match the market pricepoint or might be setting themselves up for some risk

 

[goodcow]

Can't wait until phone subsidies end in the US and reality sets in for Apple.

 

[itpromike]

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

That's just great.

Um no one is making you do anything. Just because Apple makes something doesn't mean they are forcing you to get it and doesn't mean you HAVE to get it.

----------

You don't know the demand for Apple products then.

That the 5s sold way more units than the 5c shows that people who want Apple products don't mind paying a premium for it.

I daresay that should the price of the iPhone increase, sales would remain constant, or even increase, if consumers feel that the added utility of the iphone6 exceeds the price increase.

Price =/= value.

No it just means that people didn't want to pray an almost premium price for last years phone. No one wanted the POS 5C

 

[Four oF NINE]

Who is "making" you buy an iPhone? I don't want a 6" phone, so I will not buy one. If they discontinue everything except that size, I guess I'll use my 5S until it no longer works then look elsewhere.

no, you don't have to buy it.

I have the entire Apple ecosystem. I couldn't possibly switch to anything else, even if I wanted to. Which I don't.

 

[LouieTheLug]

Price Hike

1ST of all..!!! NO GOOD..!!!! The price will certainly go up on both ends. (Retail Price & subsidized) NOT GOOD!!!

2ND of all..!!! You Know as well as I do that the Right idea "Would be" to go up on the 5.5 in. by $100.00 "IF" you choose to Go Up...? YOU'RE CHOICE...

3RD of all..!!! PLEASE LEAVE THE PRICE ON THE 4.7 in. "ALONE". "PLEASE"..!!!

I LOVE APPLE BUT DO NOT MAKE A FATAL JUDGEMENT CALL... THANK YOU..!!!

 

[bushido]

are those prices really fixed and forced upon by apple in the US? cuz over here it depends on what plan you choose so you could get the iPhone 5S for no more than 1€ on a 49€ monthly plan or for 129€ on a 19€ monthly plan for example

 

[britboyj]

Are people actually reading the article?

 

[everything-i]

Talk about an unclear article . . . it seems Apple is proposing to increase the retail and wholesale price by $100, which would increase the carrier subsidy.

Why would telcos object to an increase in the subsidized price, given how much they've been complaining about subsidies anyway?

They are complaining about subsidies because the market has been pushed in new directions by TMobile in the US which is hurting their previously colossal profits. In order to protect these profit margins they are coming up with new ideas to increase the profit on plans. Subsidising phones is a big cost to the carriers and an easy win if they can get rid of this expense. Don't expect plan prices to come down much though if they do end subsidies, after all that's where their next growth in profits is coming from
From this artivcle I take it that Apple wants to increase the wholesale price of the phone by $100 while keeping the $199 price point for consumers. Otherwise there would be nothing for the carriers to complain about. If it is the case that wholesale cost is increasing by this much it must mean that the new phone is decent step up from the current version so its going to be interesting to see what they have done with it.

 

[hybroid]

No way they increase their prices (especially now that there's more competitors).

Plus, let's look at the source of this "info".

Besides, when was the last time you saw Apple *increase* the price of an already established product?

Umm, 2012 when the iPhone 5 went up by £50? Used to be £499 now £549. Wouldn't be surprised if the 6 became £600.

 

[LordVic]

Capabilities that don't even work right half the time.

It's possible that they are working with exotic manufacturing processes like that liquid metal and sapphire glass, which is fairly expensive in terms of R&D and manufacturing, and so will jack up the price of the iPhone for now.

the actual "WORKING RIGHT" is irrelevent to the argument.

they still have physical tangible costs associated with the additional featureset... Even if they suck (I admit, there are a LOT of features that just don't work right on a lot of devices added for the featurelist). But they STILL cost to make and buy.

Read above on my point though about apples r&d costs. its a non starter for me. Apple has enough money on hand to easily cover the R&D costs to cure cancer at this poitn (Hyperbole) and still turn a profit.

They need to price at the competition levels, which is what the market has shown it can sustain. Not try and push the market higher again. At some point, Apple will realize they are no longer the only game and they can't dictate the market price, but must accept lower margins in order to maintain relevancy.

If Apple decided their 4.7" phone was to cost $750 (up 100), when you can buy the flagship rivals for $650 to $699 still, you're going to see a lot of people who are "on the fence" or.. who don't have a lot of tech knowledge who buy based on number lists (proven to be the most relevant purchasing decision for a lot of people, hence the stupid commercials that samsung keeps putting out touting numbers), Apple will not sell well.

 

[cmChimera]

Instead of negotiating a $100 decrease to stay competitive, Apple chooses to go the opposite direction. Then again, why am I surprised with this post Steve Jobs leadership???

Haha yeah, Steve Jobs was all about decreasing profit margins.

 

[Nikiaf]

I get the sense that this is related to the subsidized price; not the off-contract price. I don't think they can get away with a higher unlocked price, since Samsung is selling their flagship phones at roughly the same price as the current flagship iPhone.

 

[WannaGoMac]

if they raise the price, the entire industry will follow. apple sets the bar on high end phone pricing. this stinks.

 

[kemal]

If the base model is 32GB then I'm OK with that. Otherwise I better see some copious dividend payouts on my Apple shares!