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Apple reportedly probing carriers about potential $100 premium for next-gen iPhone

post #1 of 160
Thread Starter 
Apple has apparently shown interest in raising the price of its next generation of iPhone models by $100, and has sought approval from carriers to do so, according to one Wall Street analyst.


"iPhone 6" mockup via Ciccarese Design.


The company's alleged interest in a $300 starting subsidized price for the so-called "iPhone 6" was revealed on Monday by Jefferies analyst Peter Misek, who said that thus far, carriers have not been receptive.

However, Misek believes that Apple may face a lack of competition in the smartphone space this year. In particular, he doesn't believe Samsung's new flagship Galaxy S5 has the kind of "wow" factor that will hurt Apple.




Misek believes that because of this, Apple will be able to get "at least some of the increase" it seeks, even if the additional costs are split between carriers and consumers. He believes a $50 increase in the average selling price of the iPhone could offset negative gross margins usually associated with an iPhone redesign, which is widely expected to occur this year.

Specifically, Misek estimates that a $50 increase in average selling price would increase Apple's revenues by 2 percent, while earnings per share could grow by 11 percent. A $100 average selling price increase would see revenue spike 6 percent, in his estimation, while earnings per share would benefit an estimated 24 percent.


"iPhone 6" mockup via Ciccarese Design.


Misek isn't alone. Last month, Pacific Crest also predicted that Apple will increase the subsidized price of its next iPhone to $299, justifying the change by giving the handset a larger screen than the current 4-inch display found on the iPhone 5s and iPhone 5c.

Pacific Crest's Andy Hargreaves said that he believes a $299 big-screen iPhone would increase gross profit on replacement sales, while also attracting new customers that may have otherwise opted for an Android handset with a larger display.

Well-connected analyst Ming-Chi Kuo of KGI Securities revealed in his own research note last week that he believes Apple will debut two new iPhone models this fall: He has predicted that a 4.7-inch model will still allow for one-handed use, while a larger 5.5-inch model will appeal to customers who have been gravitating toward jumbo-size handsets.
post #2 of 160
It's either "It's Peter Misek, what'd you expect?" Or Apple's has lost it's damn mind..
post #3 of 160
I'm wondering what would justify the price increase. Surely it can't just being going from 4" to 4.7". If true, perhaps it means the new iPhone will have sapphire display, 2GB ram and the base model will be 32GB.
post #4 of 160
Only Apple could price a phone as high as a macbook. Hopefully enough people will be on the carrier's new no contract option to stick it to these every two year upgrades. Prices have got to cone down on these things soon, or the market will lose steam.

No one wants to go out and keep buying new cases/accessories/docks every two years for a phone. the iPad is 499 for a GIANT screen! What is the reason for a phone being 700$ as a base cost?
post #5 of 160
My guess is that the lower end phones will be significantly reduced to offset this.
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post #6 of 160

Everyone calm down.

 

If Apple is truly making 2 models, at 4.7" and 5.5", then everyone would reasonably expect the subsidized prices of these two models with 16 GB capacities to start at $199 and $299, respectively.

 

When did any doubt about this enter anyone's mind?

post #7 of 160
Quote:
Originally Posted by Rogifan View Post

I'm wondering what would justify the price increase. Surely it can't just being going from 4" to 4.7". If true, perhaps it means the new iPhone will have sapphire display, 2GB ram and the base model will be 32GB.

Think logically. The new 4.7" phone will be $199 for 16 GB. There is no room for doubt or conjecture here.

 

If Apple is ALSO making a 5.5", it a stands to reason that one would cost more, correct? This is where the $299 comes from.

post #8 of 160
Quote:
Originally Posted by sestewart View Post

Only Apple could price a phone as high as a macbook. Hopefully enough people will be on the carrier's new no contract option to stick it to these every two year upgrades. Prices have got to cone down on these things soon, or the market will lose steam.

No one wants to go out and keep buying new cases/accessories/docks every two years for a phone. the iPad is 499 for a GIANT screen! What is the reason for a phone being 700$ as a base cost?

Speak for yourself. I could care less.

post #9 of 160
Quote:
Originally Posted by pmz View Post
 

Everyone calm down.

 

If Apple is truly making 2 models, at 4.7" and 5.5", then everyone would reasonably expect the subsidized prices of these two models with 16 GB capacities to start at $199 and $299, respectively.

 

When did any doubt about this enter anyone's mind?


You're probably right, although 16GB as the base is getting a bit long-in-the-tooth, given it was the base in 2009 (5 years ago).

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post #10 of 160
Quote:
Originally Posted by asdasd View Post

My guess is that the lower end phones will be significantly reduced to offset this.

The iPhone 5s will stick around at 16 GB for $99.

 

The iPhone 5c will live on as well at 8 GB for $0 and 16 for $99.

 

iPhone 4.7" will start at 16 GB for $199

 

iPhone 5.5" will start at 16 GB fro $299.

post #11 of 160
Quote:
Originally Posted by pmz View Post
 

Speak for yourself. I could care less.

How much less could you care?

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post #12 of 160
Quote:
Originally Posted by Zoolook View Post
 


You're probably right, although 16GB as the base is getting a bit long-in-the-tooth, given it was the base in 2009 (5 years ago).

Its more than enough storage for the average user. The above average user pays the premium for more storage. Apple then makes lots o' money.

post #13 of 160
Quote:
Originally Posted by pmz View Post
 

The iPhone 5s will stick around at 16 GB for $99.

 

The iPhone 5c will live on as well at 8 GB for $0 and 16 for $99.

 

iPhone 4.7" will start at 16 GB for $199

 

iPhone 5.5" will start at 16 GB fro $299.

 

I have no idea why you think those are real prices. 

 

I expect if they raise the prices on the top models that the lower models ( like the 5C) will fall below $300 off contract.

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post #14 of 160

"No one wants to go out and keep buying new cases/accessories/docks every two years for a phone"

 

When you choose to upgrade your iPhone is entirely up to you, of course. This is true of Apple products or anything else you consume.

post #15 of 160
Quote:
Originally Posted by pmz View Post

The iPhone 5s will stick around at 16 GB for $99.

The iPhone 5c will live on as well at 8 GB for $0 and 16 for $99.

iPhone 4.7" will start at 16 GB for $199

iPhone 5.5" will start at 16 GB fro $299.
Apple selling a phone with 8GB storage is just embarrassing,
post #16 of 160
Quote:
Originally Posted by cherrypop View Post
 

"No one wants to go out and keep buying new cases/accessories/docks every two years for a phone"

 

When you choose to upgrade your iPhone is entirely up to you, of course. This is true of Apple products or anything else you consume.

It matters for Apple's bottom line that people do it more frequently however.

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post #17 of 160
Quote:
Originally Posted by Rogifan View Post

I'm wondering what would justify the price increase. Surely it can't just being going from 4" to 4.7". If true, perhaps it means the new iPhone will have sapphire display, 2GB ram and the base model will be 32GB.

Why not? That's a lot more additional screen area? Why assume that doesn't have an additional cost associated with it. What if they also increase the resolution or if it's a 5.5" display or if they double the NAND or use additional components because they have more room behind that larger display? Lots of reasons why the price might increase.

Quote:
Originally Posted by sestewart View Post

No one wants to go out and keep buying new cases/accessories/docks every two years for a phone. the iPad is 499 for a GIANT screen! What is the reason for a phone being 700$ as a base cost?

What's the alternative? Buying a case every year if you have something like the Galaxy series where the casing changes dramatically every single time or keeping the same style for many years in a row? As it is now people bitch and moan that Apple isn't "innovating" when they use same external design for a 2nd year in a row. I think that systematic and stable release schedule is great for business.

Quote:
Originally Posted by pmz View Post

Think logically. The new 4.7" phone will be $199 for 16 GB. There is no room for doubt or conjecture here.

If Apple is ALSO making a 5.5", it a stands to reason that one would cost more, correct? This is where the $299 comes from.

Those prices are way too low. The current 16GB iPhone 5C is $549. Any dropping of price will likely not be by more than $100.

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post #18 of 160
Quote:
Originally Posted by pmz View Post

Its more than enough storage for the average user. The above average user pays the premium for more storage. Apple then makes lots o' money.
Do you have a source for this? I thought hardware was supposed to get cheaper over time. Why should memory cost the same today as it did 4-5 years ago. Last year Apple reduced the price of the MacBook Air by $100 keeping the same amount of storage. There's no reason they couldn't offer 32GB for the same price as 16GB, except if accounting is running the show and it's all about margins.
post #19 of 160
Quote:
Originally Posted by sestewart View Post

Only Apple could price a phone as high as a macbook. Hopefully enough people will be on the carrier's new no contract option to stick it to these every two year upgrades. Prices have got to cone down on these things soon, or the market will lose steam.

No one wants to go out and keep buying new cases/accessories/docks every two years for a phone. the iPad is 499 for a GIANT screen! What is the reason for a phone being 700$ as a base cost?

 

1) Apple uses premium materials backed by premium software & customer service.  In other words (generally speaking).. when you pay more,  you get more.   Having used Windows laptops for 15 years.. and now having owned Macbooks for the past 3 years.. I have personally experienced the night & day difference between the average Windows laptop & average Macbook.   You literally cannot pay me to go back to using a Windows laptop again.  

 

Devices like a laptop (or a smartphone) are items that I generally use for several hours every single day.   When I depend on a device for that many hours, every day, then I have no problem paying the higher price for something that is made with better materials, better software and delivers a better overall experience.  Millions of other people feel the same way, which is why millions of people have no problem paying extra for Apple devices.

 

2) I agree that noone wants to keep paying for new cases, accessories or docks.. but can you name ANY smartphone manufacturer that uses the exact same design year after year?  While Apple did switch from the 30pin connector to the Lightning connector two years ago.. they had used the 30pin connector for the almost a decade.  Switching connectors once every 10 years is fine by me.

 

Lets also remember that smartphones aren't just "phones" anymore.  This arent throwaway $30 prepaid phones that simply dial number or send text messages.   Most current smartphones can accomplish about 80% of the tasks that a user would do on a fully functional computer.  And users have all that computing power.. right in their pocket.  Speaking of pockets.. the reason why a phone will always cost more than a tablet.. is because it generally costs more to take the same technology and make it smaller.  Its fairly easy for an engineer to design a "GIANT" product.  It take much more resources, research, design and advances in technology to take that same experience and make it much smaller & thinner.. and able to fit in your pocket.  

post #20 of 160
That would be very very bad.
post #21 of 160
Quote:
Originally Posted by SolipsismX View Post

Why not? That's a lot more additional screen area? Why assume that doesn't have an additional cost associated with it. What if they also increase the resolution or if it's a 5.5" display or if they double the NAND or use additional components because they have more room behind that larger display? Lots of reasons why the price might increase.
sure there are reasons the price could increase. I'm speculating what they might be. I don't know if just a bigger screen in and of itself is a good enough reason. I'm sure retina had a cost associated with it but the 3rd gen iPad didn't become more expensive than the 2nd gen. No doubt the iPhone 5 had lots of manufacturing complexities but it stayed the same price as the 4S, and the 5S with Touch ID didn't increase in price either. Unless this phone really has something unique I can't see a price increase being good for Apple. Of course if this $100 increase is in relation to some phablet like device then it would make more sense.
post #22 of 160

If, Apple decided to put Sapphire ( expensive ) and Liquid Metal Body, then there could be a rise of at least $20-$25 BOM. 

 

But both seems so far away from mass production I dont see these as the reason to rise price.

 

The most likely thing I say, would be Apple decide to drop 16GB from its Flagship Model. So iPhone 6 will start at 32GB.

 

And if you want 16GB you will have to choose the mid / lower tier.

post #23 of 160
So, just how much less could you care? A little less. A lot less? A whole lot less? Please tell us.

As for those of us who couldn't care less, no further explanation is required. 1cool.gif

ps This is only a bit of fun. Transatlantic humour, if you will. I love when you Americans say exactly the opposite of what you mean. My favourite is when you say that you're put gas in your fuel tank when in fact it's a liquid. Priceless.

pps Please don't take any of this to heart. I know we irish have our idiosyncrasies, too. And I hope you have a great day in New Jersey. I'm told it's a wonderful place.

I should have commented on the original Appleinsider post, shouldn't i? Now it looks like an ad hominem attack. Sorry, just couldn't resist it! 1biggrin.gif

Ok, since I'm on a rant here. What are the chances that Apple would release three iPhone sizes, 4", 4.7" and 5.5" all at the same price? You know, choose the one that best suits your personal needs. They'd all have the same internal specs and only differ in screen size. Not much chance, really, I suppose.
post #24 of 160
Quote:
Originally Posted by Rogifan View Post

sure there are reasons the price could increase. I'm speculating what they might be. I don't know if just a bigger screen in and of itself is a good enough reason. I'm sure retina had a cost associated with it but the 3rd gen iPad didn't become more expensive than the 2nd gen. No doubt the iPhone 5 had lots of manufacturing complexities but it stayed the same price as the 4S, and the 5S with Touch ID didn't increase in price either. Unless this phone really has something unique I can't see a price increase being good for Apple. Of course if this $100 increase is in relation to some phablet like device then it would make more sense.

Speaking of phablet, a digitizer could do it. Check out the cost of the Galaxy Note. I think it's the Wacom digitizer that brings that price up. You can use a stylus on an iPhone or iPad but without a digitizer it's never going to be as accurate or have features that come along with a digitizer. And Apple could really do some amazing things here with their expertise in SW. Samsung created APIs for the the Note's digitizer but I can't imagine it could even come close to what Apple could offer developers and customers. I'd think a ≈5.5" device with a digitizer might be great for Asians markets and hopefully they can get the cost of the digitizer low enough to make it standard on every device with a touch interface, which might be one of the components Cook mentioned in waiting for the right technology to arrive.

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"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

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post #25 of 160

Apple have a gross profit over 50% on iPhone.

This works in USA where phones are subsidized. Most countries are moving away from subsidies since cheaper data/calls are more attractive for customers. 

 

In Euro countries an unlocked iphone const 1200 dollar + thanks to taxes. High end Android 300-400 dollars. Even GalaxyS5 cost under 900 dollars. 

People are prepared to pay a premium for a premium product but Apple is not 30% better than Samsung. Adding 100 dollar (+ taxes = 150 dollars) to the price will kill Apple outside US. Apple have under 20% marketshare here in smartphones. Higher price = even less market share.


(isn't it strange that an unlocked iPad Air cost 499 /550 with LTE? Iphone should cost the same and WILL when subsidising dies)

post #26 of 160
Quote:
Originally Posted by pmz View Post

The new 4.7" phone will be $199 for 16 GB. There is no room for doubt or conjecture here.

If Apple is ALSO making a 5.5", it a stands to reason that one would cost more, correct? This is where the $299 comes from.

So no new iPhone with a 4" screen? I'll be off to Android and probably get Gatorguy to be my guide in that pool of options out there. Come to think of it, are there any 'Android phones' with a 4" screen or smaller?
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post #27 of 160

I agree with you on your points. and everyone else to an extent.

 

However, the idea of computer chipset costs is that as the chipsets get smaller, and require less materials, the cost of the chipsets go DOWN. Same as the price of storage hard drives and screens. The price to the consumer should be going down, not up. The reason computers are dirt cheap are because of the chipset costs being so low that you can push laptops for under 200$. even with these huge 15/17 inch screens, you can find decent priced computer products for a reasonable price. 

 

Even samsung has their products at 650$ as a base phone, and that thing is nearly entirely plastic. 

 

The reason people are stuck in the "upgrade 2 year" mantra is that if you buy a 2 year old phone, you run the risk of not getting support updates for the phone after it's 3rd year. I'm quite surprised Apple even provided updates for the iPhone 4 for iOS 7, given their track record from the 3G/3GS models updates phasing out at the 3 year mark. Whereas a PC sustains updates and support for over 5-10 years. 

 

If this model continues to pan out in Apple's favor, should their customers expect every Macbook/MacPro customer to replace their computers every 3 years? 

post #28 of 160
Quote:
Originally Posted by SolipsismX View Post

Speaking of phablet, a digitizer could do it. Check out the cost of the Galaxy Note. I think it's the Wacom digitizer that brings that price up. You can use a stylus on an iPhone or iPad but without a digitizer it's never going to be as accurate or have features that come along with a digitizer. And Apple could really do some amazing things here with their expertise in SW. Samsung created APIs for the the Note's digitizer but I can't imagine it could even come close to what Apple could offer developers and customers. I'd think a ≈5.5" device with a digitizer might be great for Asians markets and hopefully they can get the cost of the digitizer low enough to make it standard on every device with a touch interface, which might be one of the components Cook mentioned in waiting for the right technology to arrive.
If Apple releases a 5.5" phone with a stylus I will laugh my ass off. And I'm sure Samsung will have a bevy of ads ready to go once it's announced.
post #29 of 160
Quote:
Originally Posted by Rogifan View Post


Do you have a source for this? I thought hardware was supposed to get cheaper over time. Why should memory cost the same today as it did 4-5 years ago. Last year Apple reduced the price of the MacBook Air by $100 keeping the same amount of storage. There's no reason they couldn't offer 32GB for the same price as 16GB, except if accounting is running the show and it's all about margins.


Because Memory today uses far less power then 4 - 5 years ago? Honestly, technology continue to improve, but price and storage density isn't the only thing that matters. The NAND within your phone has gotten faster. The Memory in iPhone has been using lower and lower power in the pass three generation. All these prices would have drop so much if our Battery Tech get a sudden 10x jump. 

 

But reality is we dont have anything on roadmap that sees substantial battery improvement.

 

Quote:
 However, the idea of computer chipset costs is that as the chipsets get smaller, and require less materials, the cost of the chipsets go DOWN. Same as the price of storage hard drives and screens. The price to the consumer should be going down, not up. The reason computers are dirt cheap are because of the chipset costs being so low that you can push laptops for under 200$. even with these huge 15/17 inch screens, you can find decent priced computer products for a reasonable price. 

 

Similar, read my point above.

post #30 of 160
Quote:
Originally Posted by sestewart View Post

The reason people are stuck in the "upgrade 2 year" mantra is that if you buy a 2 year old phone, you run the risk of not getting support updates for the phone after it's 3rd year. I'm quite surprised Apple even provided updates for the iPhone 4 for iOS 7, given their track record from the 3G/3GS models updates phasing out at the 3 year mark. Whereas a PC sustains updates and support for over 5-10 years. 

If this model continues to pan out in Apple's favor, should their customers expect every Macbook/MacPro customer to replace their computers every 3 years? 

I was also surprised their 3 year old phone got the new iOS. As for PC's, I think they really are throwaway products, especially with the low prices we have nowadays. These $1k-3k boxes used to cost $10k and up; tech has become dirt cheap.
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post #31 of 160
Quote:
Originally Posted by Rogifan View Post

If Apple releases a 5.5" phone with a stylus I will laugh my ass off. And I'm sure Samsung will have a bevy of ads ready to go once it's announced.

I know why but I think it would be silly as you're misattributing Jobs words. He was talking about devices before the iPhone that required a stylus to be used because pressing on a resistive keyboard was a horrible experience. This would still be the same iOS UI but with the option for a stylus, just like with the Note. I also don't think Apple would include a stylus with such a device.

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post #32 of 160
I'm fine a base price increase, IF they lower the incremental cost to increase storage capacity. Right now it's 199/299/399 for 16/32/64 GB (for the 5S anyway). If Apple wants to bump up the base price by even $100, fine, but make the split 299/349/399 for 16/32/64 GB capacities. Flash is cheap these days, even at $50 increments Apple is still making a killing with profit margins.
post #33 of 160
Quote:
Originally Posted by pmz View Post
 

Its more than enough storage for the average user. The above average user pays the premium for more storage. Apple then makes lots o' money.

 

I'm an average user and I'm almost out of space. I had to delete things just to install iOS 7.1

 

You have to remember that the camera takes pretty good photos and they use up a lot of space. Average people are using the phone as a camera too since it takes such good pictures, and they can then post them on Facebook, twitter, etc. Yes, average people do this such as my dad who is 71yrs old. 16GB of storage on the entry level is joke and a ripoff to consumers. Its sad they still offer 8GB which is totally unusable. 

 

I don't really do much with my phone except email, very little browsing, picture taking and I have "maybe" 20 apps total installed most of which I don't use all the time but enough to keep them installed. I'm not a power user by any means. 

 

You sound like this person:

 

"640K ought to be enough for anybody" -Bill Gates


Edited by macxpress - 4/14/14 at 8:00am
post #34 of 160
Based on the amount of supposed leaks I have to wonder if Apple will change up the iPhone release schedule again, this time bringing it back close to a Summer release. Sure, it doesn't work well for iOS testing but it could allow them to build more supply for the Holiday quarter and allow the next event in their Autumn to allow for more devices.

Quote:
Originally Posted by ksec View Post

The NAND within your phone has gotten faster.

AnandTech's results on NAND speed have not been kind.




I would love to see an SSD SoC. Essentially several smaller NAND chips packaged with an SSD controller so that they could speed up the performance of the NAND several fold.

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post #35 of 160
Quote:
Originally Posted by SolipsismX View Post

I know why but I think it would be silly as you're misattributing Jobs words. He was talking about devices before the iPhone that required a stylus to be used because pressing on a resistive keyboard was a horrible experience. This would still be the same iOS UI but with the option for a stylus, just like with the Note. I also don't think Apple would include a stylus with such a device.
No, it's not about Jobs, it's about Apple suing Samsung in court for copying. If Apple releases an iPhone version of the Note who's copying now?
post #36 of 160
Originally Posted by sestewart View Post
the iPad is 499 for a GIANT screen! What is the reason for a phone being 700$ as a base cost?

 

The same reason an iMac is $1,299 and a MacBook Pro is $1,699.

 

Small equals engineering equals cost.

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already fucked.

 

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There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already fucked.

 

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post #37 of 160
Quote:
Originally Posted by Rogifan View Post

No, it's not about Jobs, it's about Apple suing Samsung in court for copying. If Apple releases an iPhone version of the Note who's copying now?

You need to learn what copying is. Samsung has no IP here. Digitizers existed on products long before Samsung added one to a product. Your comment is as silly as saying Apple stole the idea for LTE simply because it waited for LTE chips to be (3rd gen) power efficient.

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post #38 of 160

Iphone 5 build and manufacturing costs - 16gb $207.00, 32gb $217.00, 64gb $238.00 respectively. 

 

https://technology.ihs.com/410378/iphone-5-carries-199-bom-virtual-teardown-reveals


iPhone 5S build and manufacturing costs - 16gb $198.70, 32gb $208.10, 64gb $218.30 respectively. 

 

http://technology.ihs.com/451425/groundbreaking-iphone-5s-carries-199-bom-and-manufacturing-cost-ihs-teardown-reveals


So cost has gone down. And Apple is still taking away 450$+ profit a phone. Not that I think they're wrong making profit.. but clearly the cost is going down, and margins are going up. 

post #39 of 160
Quote:
Originally Posted by SolipsismX View Post

Those prices are way too low. The current 16GB iPhone 5C is $549. Any dropping of price will likely not be by more than $100.

I don't understand? Did I miss something?

 

The iPhone 5s will drop by $100 to accommodate the incoming flagship model(s). No surprise there.

 

The iPhone 5c will do its own thing. Either it stays around as just an $0 - 8 GB model....or they keep a 16 GB version priced at $49 or $99. Yeah it would be weird having a 16 GB 5c and 16 GB 5s at the same exact price...they probably won't do that. But recent pricing structures lead to believe its an option.

post #40 of 160
Quote:
Originally Posted by sestewart View Post

Iphone 5 build and manufacturing costs - 16gb $207.00, 32gb $217.00, 64gb $238.00 respectively. 

https://technology.ihs.com/410378/iphone-5-carries-199-bom-virtual-teardown-reveals

iPhone 5S build and manufacturing costs - 16gb $198.70, 32gb $208.10, 64gb $218.30 respectively. 

http://technology.ihs.com/451425/groundbreaking-iphone-5s-carries-199-bom-and-manufacturing-cost-ihs-teardown-reveals

So cost has gone down. And Apple is still taking away 450$+ profit a phone. Not that I think they're wrong making profit.. but clearly the cost is going down, and margins are going up. 

1) You have no way of knowing that. All you have are some company's made up numbers. They probably used some foundation of truth to get what they think are reasonable assumptions but they can't know for sure posting this as a fact isn't reasonable. "iSuppli believes…." would be a reasonable way to start your comments, assuming these figures came from them.

2) Did the cost of the iPhone 5S include the acquisition of AuthenTec for $356 MM? How many iPhone 5S's have sold? If it's 50 MM that means the each iPhone 5S costs $7.12, but that doesn't count Apple cost for developing the HW (which includes the secure enclave on the A7 chip) or the SW. That's just one new component and we already have no concept of what that has cost Apple to get that into the device. Do we even know how much that sapphire cover on the Home Button cost?

"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

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"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

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