Record orders for the Apple iPhone 6 could lead to a 5% to 10% price hike for competing phones

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Record orders for the Apple iPhone 6 could lead to a 5% to 10% price hike for competing phones
Apple has recently been rumored to have ordered a record 70 million to 80 million units of the Apple iPhone 6 for the initial run of the phone. Chinese media have responded by telling consumers to expect a 5% to 10% price hike on competitive models, in return. The reason for this has to do with the limited resources that contract manufacturers have. If they are forced to have more assembly lines working on the iPhone 6 as opposed to another company's phone, production of the latter device will drop. And for those who passed Economics 101, think back at what happens when demand stays the same and supply drops.

Those of you who said that prices rise under those circumstances, congratulations on being correct. Consider that Apple's largest iPhone manufacturer, Foxconn, also builds devices for companies like Nokia, Sony, Motorola, Microsoft and BlackBerry, to name a few. You can see why Apple's decision to order such a large amount of handsets could reduce the supply of other models.

The same quarter that launches the Apple iPhone 6 could also see the release of the Sony Xperia Z3, the BlackBerry Passport, and the Samsung Galaxy Alpha. It should be interesting to see if the rumored large order placed by Apple for the iPhone 6 pans out, and if it does, how that affects the pricing of the competitors' top-shelf phones.


Thanks for the tip!

source: udn.com (translated) via GforGames

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