5.5-inch iPhone may cost $100 more, but consumers are willing to pay

5.5-inch iPhone may cost $100 more, but consumers are willing to pay

With Apple expected to unveil new iPhone models this fall an obvious question looms: how does Apple plan on pricing these devices?

With Apple largely expected to unveil two new iPhone models this fall -- one with a 4.7-inch screen and the other with a 5.5-inch screen -- an obvious question looms: just how does Apple plan on pricing these devices?

Historically, Apple has remained beholden to pricing new iPhone models at a base price of $199 and charging more for more memory. With two different-sized iPhone models on the horizon, it remains to be seen how Apple handles its traditionally simple pricing matrix.

Commenting on the matter, analyst Tavis McCourt of Raymond James recently opined that Apple may price the 5.5-inch iPhone model $100 higher than the 4.7-inch model. While only Apple executives at this point are privy to that type of information, survey data amassed by McCourt suggests that consumers would be willing to pay the extra $100 for the larger device.

MarketWatch reports on McCourt's recent analyst report:

"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," he added.

In fact, he added, "data seems to suggest meaningful demand for a larger screen, which should logically mean the iPhone 6-cycle will be strong for upgrade sales, which combined with modest contribution from wearables should cause a modest acceleration in revenue growth in fiscal 2015."

And speaking of the iPhone 6, Gforgames earlier today published a report claiming that the 5.5-inch iPhone model will be the only one graced with a sapphire screen. The 4.7-inch model will continue to sport Gorilla Glass.

With Apple purportedly releasing two new iPhone models this year, not to mention two larger-screened models, it stands to reason that this may be one of the biggest iPhone upgrade cycles we've seen yet.

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Tags smartphonesAppleiosoperating systemsiPhonesoftwareconsumer electronicsiOS 8 devices


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