Report: Apple talking with carriers about $100 price jump for the Apple iPhone 6

Report: Apple talking with carriers about $100 price jump for the Apple iPhone 6
The screen might not be the only thing larger on the Apple iPhone 6. According to Peter Misek, an analyst who plies his trade at Jefferies, Apple is in the midst of negotiating with carriers, a $100 price jump for the next iPhone. The good news is that the mobile operators' initial response has been to reject this attempt by Apple to raise the price of its iconic smartphone.

Other analysts expect the carriers to fall into line with Apple's request. Pac Crest analyst Andy Hargreaves says that the Apple iPhone 6 could be priced at $299 with a carrier subsidy, $749 off-contract. And if Apple does release an iPhone phablet as expected, the price of that phone could be $100 more.

It might seem strange that Apple has to negotiate a price increase with the carriers, but apparently both sides need to approve any price changes based on long term contracts dealing with subsidies. And while it might seem odd to admit that consumers have been favoring lower priced, larger screened devices and then talk about hiking prices, Apple doesn't see itself as constrained by the pricing of rivals and considers its devices to be somewhat immune from the competition because of the Apple name.


source: BusinessInsider via SeekingAlpha

Related phones

iPhone 6
  • Display 4.7 inches
    1334 x 750 pixels
  • Camera 8 MP (Single camera)
    1.2 MP front
  • Hardware Apple A8, 1GB RAM
  • Storage 128GB, not expandable
  • Battery 1810 mAh
  • OS iOS 12.x

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77 Comments

73. networkdood

Posts: 6330; Member since: Mar 31, 2010

As P.T. Barnum once said...there is a sucker born every minute.... Sooooo....a hundred dollars more for a device with a puny size screen and it comes with a pseudo OS and boring UI? Wow...I am sure there will be a few iSuckers ready to pounce on that deal...

71. hurrycanger

Posts: 1777; Member since: Dec 01, 2013

No surprise. I knew that was gonna happen if Apple ever releases a big iPhone.

59. Taters

Posts: 6474; Member since: Jan 28, 2013

They have been increasing the price in Canada every year for each new iteration. So this is going to be like at least a $120 increase here. So the 16gb 5s unlocked was $719 so this will be like an absolutely ridiculous $849 unlocked for the 16gb. I hope for the sake of humanity that no one buys it, especially since they have a 100 billion in the bank they don't know what to do with. However, I am sure the fools will still bend over for Apple.

53. Sniggly

Posts: 7305; Member since: Dec 05, 2009

Lol, Apple. You silly gooses. I mean, it's not like the market demand is GOING IN THE EXACT OPPOSITE DIRECTION, and that there's only so much that even true Apple fans will pay. It's not like the Galaxy S4 didn't attract as many customers when Samsung only tried a 50 dollar price hike on contract, and it's not like carriers didn't immediately drop the price to 200 dollars instead.

56. Droid_X_Doug

Posts: 5993; Member since: Dec 22, 2010

I think it is called arrogance. Timmy didn't get a clue from the 5Crap experience. Now he is doubling down with a $100 price increase. I wonder how long before Timmy gets the message?

68. Taters

Posts: 6474; Member since: Jan 28, 2013

I don't think Samsung made those increases. The carriers did. Unlike Apple who completely cuts out the carriers and physical stores, Samsung lets them take a cut.

52. AfterShock

Posts: 4147; Member since: Nov 02, 2012

I think they should charge more!

47. SAO101789

Posts: 123; Member since: Feb 10, 2014

A bigger iphone with a limited number of tweets. I rather go with samsung, somy, or nokia. I can watch my itunes only laptop or if I get a ipad. Apple is a great media player but it's phone will be the death of apple.

44. ojdidit84

Posts: 462; Member since: Jul 16, 2011

$100 more through subsidies may seem crazy but before the iPhone forced subsidized pricing on all phones down, I can remember that I was already paying $350-400 for a new phone since subsidies were only between $150-200 off of the phone. This probably won't be THAT much of a big deal here in the US where we have subsidized pricing but in countries where carriers don't subsidize and you have to buy your phones at full price, this is definitely going to drive customers away.

46. Topcat488

Posts: 1425; Member since: Sep 29, 2012

You do realise that you're paying for the phone every month with higher phone bills... So in the end, what others pay upfront, you're still paying full price, only monthly. O.o No gain!

72. ojdidit84

Posts: 462; Member since: Jul 16, 2011

I'm not actually because I have T-Mobile and I've always paid for my phones at full price. Either way, it doesn't change my point. The average person doesn't look at what they're going to spend over the next two years. That up-front price is what people pay the most attention to. That up-front price that people in other countries are going to see first hand.

42. DigitalJedi_X unregistered

I wonder where Mxy is at? He'd be here telling us all how it's Apple and that the increase in price is justified. Anyway, Apple loyalists have justified price increases like this to Apple. They already overpay for a device with dumb phone specs. So why not charge $100 more for a uneasily .7 inch increase? Apple loyalists will pay for it. Whereas Android & WP offer the latest specs and features for less. I know where I'll continue to spend my money. Hint: NOT with Apple.

41. alexboy20

Posts: 18; Member since: Apr 05, 2014

I'm a iphone user and love iPhones and the o.s but I refuse to pay $300 for a 16gb iphone 6 r they crazy?!! Just cause the screen is now only 4.7?'??! That's not that big of a jump ! Now however if they release a iphone that's 5.5-5.7 inch then I will pay $100 more. Looks like I'll be switching to note 4 if they try and put a 4.7 iphone for $100 more I just wish Samsung had a iTunes app I bought so much music

45. Topcat488

Posts: 1425; Member since: Sep 29, 2012

You can transfer all your music, photos, videos, everything EXCEPT game APPS, to your Android Phone. Everything in iTunes can be transferred over to Android wireless using a App called "Airdroid"... O.o Don't let iTunes hold you prisoner.

40. Noble_One

Posts: 63; Member since: Aug 18, 2012

You should be able to get an unsubsidized Nexus 6 for 350 to 400. I just don't see it...The 299 price is for the 16gb model I'm assuming... Just not a good deal no matter what way you slice it. Apple's popularity is remarkable, however, if I'm them, I don't take a risk that could hurt my reputation for being consumer with Samsung already breathing down my neck. Just me though...By the time this hits the market, the gs5 could be a full $200 less than the new iPhone with the potential for 8 times more storage capability.

37. fredmode01

Posts: 19; Member since: Jul 17, 2012

Sad thing about that is: this kind of policy will/may lead other manufacturers to increase their prices too.. Apple did it before, they followed.. Apple doing it again, I fear they will do the same. Or they won't, as they are more clever than Apple.. I trully hope.. 750€ for a Galaxy S6 (insert HTC One M9, Sony Z3, or whatever you like instead, no problemo) is a big no to me. Such a big no, that I could go back to "dumbphones".. (or keeping buying Windows Phones for a while..)

30. Planterz

Posts: 2120; Member since: Apr 30, 2012

If anything, this will mean Apple losing sales, and Android gaining more customers. iPhone owners will look at these larger phones, realize they want a bigger screen, but then balk at the price and wander over to look at the SGS5 or LG G2/G3, etc. Conversely, Android manufacturers need to wake up to the fact that not everybody wants a huge phone, and that's why many stick with the smaller iPhones. We need more small top-end devices like the Sony Z1 Compact. Half the iPhone owners I know like them because they like them (and I can respect that). The other half only like them because they don't want a huge slab in their pocket, and a 4S or 5 offers a lot of capability in a small package - moreso than most any Android. My biggest objection to the new iPhones costing even more is Apple's policy of gouging their customers to the point of absurdity for extra storage. A 64gb model shoudn't cost $200+ more than the 16gb model (and $100 more than a 32gb) when you can buy a 64gb class 10 Sandisk microSD card for $50. Flash memory doesn't cost that much these days, yet Apple gouges the living F$#@ out of their customers when it comes to storage. With larger screens, iPhone owners will be more inclined to play graphically intense games, which take up a ton of space. Which means base 16gb buyers will be limited to a game or 2, and that's it. The ONLY way a $100 price increase would be even remotely justifiable is if the base model was 32gb. $85 more for the larger screen, $15 for the cost of the extra memory, since that's all it's actually worth.

33. Scott93274

Posts: 6044; Member since: Aug 06, 2013

I agree with you 100% about the cost increase for the additional storage capacity, but people keep paying the difference so why would Apple ever stop?

35. Droid_X_Doug

Posts: 5993; Member since: Dec 22, 2010

"...so why would Apple ever stop?" If people stopped buying iToys, they would stop in a heart-beat. There won't be a second iteration on the iPCrap. Timmy's next move after the Crap's sales fail is to just raise prices. Consumers can just say no to being gouged.

65. Taters

Posts: 6474; Member since: Jan 28, 2013

They won't. They will keep gouging until they can't do it anymore. Like Microsoft and Nintendo.

38. ePoch270

Posts: 193; Member since: Sep 26, 2013

This will also REALLY help WP. I hate to say it, since I don't care for WP, but it will probably help them more than Android.

51. Droid_X_Doug

Posts: 5993; Member since: Dec 22, 2010

Especially if MS stops the STUPID carrier exclusivity. If the L1520 were available on VZW, I would have one.

63. Taters

Posts: 6474; Member since: Jan 28, 2013

That is the thing. The GS4 mini, HTC One Mini, and LG G2 mini do have the iPhone specs. Take the HTC One Mini for example, dropping from 1080p to 720p is a X% decrease. Dropping from the Qualcomm 600 to the 400 is probably also the exact same X% decrease. The battery drop is also probably X%. So therefore the performance difference between the HTC One mini and the HTC One M7 wasn't that big at all, it's just that Amdroid users see the specs differences with a close mind and just simply do not accept that if you scale size down, you can scale everything else down without it affecting performance much. Sony bucked the trend yes but at the cost of making the Z1 look like complete s**t. The compact destroys it in everything because nothing was scaled down. I don't think most manufacturers want their 1080p flagships destroyed in benchmarks by their mini versions. Apple has always used this to their advantage. Hide behind a sub HD screen and IOS that can run well on any hardware and then claim that they are doing as much heavy lifting as these Android flagships. Put IOS on the HTC One mini and I bet you anything that it would run better than the iPhone 5 runs IOS.

26. InspectorGadget80 unregistered

Well this settle it. Apple show its true colors even more just to show you how greedy they are. If I was to spend 200$ on a phone it would be a NOTE in which make sense on size screen W/it's price tag.

25. jibraihimi

Posts: 816; Member since: Nov 29, 2011

Insanity of apple is also increading with the screen size of iphone.....

66. engineer-1701d unregistered

the extra 100 will cover the cost of the 5c units not sold.

24. ryq24

Posts: 876; Member since: Oct 17, 2011

Say all negative things you want about apple but Only apple can demand for an increase! No other mobile makers including Samsung, already the number one in the world, cannot make such demand.

43. Topcat488

Posts: 1425; Member since: Sep 29, 2012

Anybody can make a demand, will the people accept that demand!?! Look at the pricing demand they made for the ip5C, now they're stuck with millions of unsold devices... Hahahahaha O.o

76. mrblah

Posts: 577; Member since: Jan 22, 2013

Still out sold all other flagships, cheif. Also, they will not be on shelf's long when they drop the price to free.

67. DarkStar286

Posts: 229; Member since: Mar 18, 2014

Any company can make the demand, the question is will anyone be willing to pay it? Obviously some won't mind paying it, but it's bound to cost Apple market share and with WP8 on the rise they could see themselves slip to third place in sales by OS. Actually that's going to happen anyway, but such a massive price increase will make it happen that much faster.

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