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Apple Could Raise iPhone Prices In 2014

Apple Could Raise iPhone Prices In 2014

November 19, 2013
Ever since the iPhone 3G launched in 2008, Apple has been consistent in what it charges customers for the company's flagship device. That could change in 2014 when the “iPhone 6” is expected to make its debut, according to Investor's Business Daily. According to Susquehanna Financial Group analyst Chris Caso, Apple is likely to increase the price it charges for the seventh generation handset to “avoid the (profit) margin erosion that occurred when the iPhone 5 launched.” That handset, which launched in 2012, cost more to produce than previous models. The price Apple charged to customers, however, remained the same. Caso notes:
When iPhone 5 was launched, Apple's phone margins declined because the new features (most notably the display) added cost to the bill of materials, yet the price point of the phone remained unchanged. Since we're expecting a host of new features in the iPhone 6 (including a larger screen), we expect the bill of materials cost of the phone to increase as well.
Since 2008, entry-level iPhones have cost $199 with a two year contract. Apple adds $100 to the price for each additional storage bump. For example, the 16GB iPhone 5s is available for $199, while the 32GB version is $299. For $399, you can purchase a 64GB model. The original iPhone launched in 2007 with a price tag of $499 (4GB) and $599 (8GB). Within two months, the 4G iPhone was discontinued and the price on the 8GB model dropped to $399. In Feb. 2008, Apple unveiled a 16GB model for $499. Personally, I don't have a problem paying a little bit more upfront for the iPhone 6. Still, I hope it comes with an increase in the amount of storage space available on the handset. A 128GB iPhone 6 has a nice ring to it, no? As usual, we’ll keep you updated. See also: Bloomberg Claims Two New Curved iPhones Could Launch Next YearApple's 'iPhone 6' Could Be A Revolutionary Device, and Bigger, Thinner iOS Devices Could Dominate Apple's 2014 Product Line.

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