Analyst: Apple’s Large-Screen iPhone 6 Will Come at a Higher Cost
Apple (NASDAQ:AAPL) is rumored to be launching the next-generation iPhone in two different larger screen sizes. According to supply chain sources cited by multiple media outlets, the iPhone 6 will be released in a 4.7-inch screen size and a 5.5-inch screen size. Apple currently lacks a phablet-sized iPhone and many industry watchers believe that the introduction of a large-screen device will entice a higher than usual number of users to upgrade their devices.
Not surprisingly, the increase in screen estate is expected to come with a higher price tag. According to Raymond James analyst Tavis McCourt, the 5.5-inch version of Apple’s iPhone 6 is likely to cost an extra $100. Apple’s 16GB flagship iPhone 5S currently starts at $199 when purchased with a standard two-year service contract, which means that the phablet-sized iPhone is likely to start at $299. That’s the bad news. The good news is that many Apple users appear to be more than willing to shell out the extra cash in order to get their hands on a bigger iPhone.
“Apple will likely charge a $100 premium for the 5.5 inch version that media reports have suggested will be available a few months after the 4.7 inch version,” wrote McCourt in a research note obtained by MarketWatch. “Our June consumer survey points to continued growth in the willingness of iPhone users to pay $100 more for a bigger screened iPhone, with now a full one-third of survey respondents willing to pay a $100 premium.”
Although McCourt cites media reports that predict two different launch dates for the iPhone 6 models, it should be noted that some analysts believe the devices will launch at the same time, much like the iPhone 5S and iPhone 5C did last year. Based partly on the additional revenue that the company is expected to generate from its new iPhone models, Raymond James increased its price target on Apple shares to $102 from $86 and reaffirmed its “Outperform” rating.