Apple reportedly wants to hike the price of the iPhone 6, but is it really a good idea? It could make sense from a business side, as long as consumers are willing to pay the extra for a phone that, right now, they barely know anything about.
The tech giant recently released its first quarter earnings, and they were nothing to shout about. It just shows that Apple needs to do something to increase its profits. It attempted it last year with the release of two phones, offering a cheaper iPhone for those struggling to afford the iPhone 5S. However, consumers proved that they were willing to pay the extra then. Could it be that they will be willing to pay the extra again?
Last year, the iPhone 5S was available for $199 for a two-year contract on Verizon and AT&T, the two biggest cell phone carriers in the United States. iPhones on sale at that price has become relatively normal right now, and people expect to pay that amount. They more likely save their money over the course of the two years, ready for their contracts to run out so they can buy the latest smartphone. An extra $100 would not be that much to some, but could be crushing for others who are still trying to get out of the financial hardship developed since the 2008 crash.
To determine whether an Apple iPhone 6 price hike would be a good idea, it is worth looking at the cost of other phones. There is only one phone that has shown some success at costing $299 for a two-year contract, the Samsung Galaxy Note 3. The difference between the Note 3 and any other smartphone at the moment is the size. It’s called a “phablet” due to its larger size.
There is certainly no threat for the demand for the iPhone to die out. There have been shortages over the last couple of years when new devices have been released. People notice that Apple’s products are far superior to many others, even with the odd negative press about things like the maps app and poor battery life. With the demand so high, it certainly makes sense for the tech giant to raise the prices even just temporarily.
The price hike is not yet set in stone. In fact, it may never happen. Yahoo reports that the rumors have come from Peter Misek, who is known for some bad predictions. He believed that the Apple TV would be available at the end of last year on five different occasions, and that never happened. Nobody else has shared any rumors, and the iPhone creator is still to confirm anything. He even acknowledges that the predictions could never work out.
There is also the possibility that the carriers would not want this to happen. It would affect their chance of customers should people decide against paying the extra $100. At the moment, the carriers are reportedly telling Apple a resounding no on the price hike, because it simply is not a good idea at this time.
Opinion by Alexandria Ingham