Why would Apple raise iPhone prices when all the money is in the mainstream?

Why would Apple raise iPhone prices when all the money is in the mainstream?

This morning an analyst posted something speculative about the possibility of a price increase on the iPhone 6 when it is released later this year. The analyst in question has horrible history when it comes to making Apple predictions, so we're going to ignore the source. What we aren't going to ignore is the idea. Could Apple use the iPhone 6 as leverage to raise iPhone prices?

Here’s what I think: Apple does whatever it wants to do. If they wanted to raise the price by $100 they’d just do it and they would not ask for permission. Furthermore, Apple’s track record over a long period of time has been to add more functionality while holding prices flat or even reducing them. That's proven to be an incredibly successful, incredibly profitable strategy so far.

It may be true that the iPhone 6 will be the only smartphone in 2014 to be truly headline-worthy. It may be true that there isn’t a lot of differentiation among the other players in the market. But I don’t think any of that supports the idea of Apple breaking from a long tradition of providing people with more value for the same money (or sometimes less).

Last year Apple went so far as to introduce two new iPhones — the iPhone 5s at the same, consistent price point, and the iPhone 5c at a lower, mid-tier price point that had, until then, been occupied by a discounted version of the previous year's product.

Could Apple do the reverse — introduce a higher, even more premium-tier price point for a newer, perhaps even bigger and more powerful iPhone Pro product? That would depend on what their market research tells them. However, most much-larger screened devices are currently selling in markets that prefer cheaper, not more expensive products.

What do you folks think? Would you spend another $100 for an even more expensive iPhone?

Have something to say about this story? Leave a comment! Need help with something else? Ask in our forums!

Chris Umiastowski

Chris was a sell side financial analyst covering the tech sector for over 10 years. He left the industry to enjoy a change in lifestyle as an entrepreneur, consultant, and technology writer.

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Why would Apple raise iPhone prices when all the money is in the mainstream?


According to data.bls.gov website CPI calculator, $200 in 2010 has the buying power of $215 today. Also factor in wage increases in China and other various costs, and it's reasonable to assume that eventually there will be no more ways to cut costs while maintaining the same profit margin.

The price of bread goes up, the price of gasoline goes up, but everybody expects the cost of a cell phone to say the same or to decrease.

The only answer , the only one that will not alienate unreasonable consumers... Is to release a new device so different that it appears to be a new category in and of itself, and therefore reset the price point to account for the continual devaluation of the dollar.

Didn't read what I said? I said eventually there will be no ways left to cut costs... on the CURRENT product; in other words, mass production and processes refinement (why the cost of tech goes down) has its limits.

Everything has to do with it. The cost of the phone is transportation, electricity, labor, aluminum, magnesium, gold, cadmium, water, paper, plastic, advertising, etc...

That's what people, especially young people and hippies, don't get... It's all connected.

I see your point, however gasoline is definitely an inelastic product. Regardless of its price, people will still purchase it out of necessity (i.e. to get work, etc). However, a phone is not quite on the same demand.

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Not sure about that. Tons of people have cut the cable. No land lines. So if your only way to keep in touch with the world is your "DEVICE", then it really is a necessity.

But that is a choice. There are alternatives. You don't "have" to cut the cord, you choose to.

As for gas, it's not really an option. You can't replace your gas with something else if you didn't want to buy gas. Gas is the only thing you can use to fuel your car. The world depends on it. That's why they can price it as they see fit and we just have to deal or ride a bike.

Your comment doesn't make any sense. Yes, you choose to cut the cord. I know many people who choose to not own a car.

Unless you live in the middle of no-where there are usually MANY alternative modes of getting from here to there. A mobile device is infinitely more... lets say convenient. Not only do you get various modes of staying in contact, but also the convenience of being reachable in an emergency anywhere at any time which you cannot do with a land line. I also know many people whose mobile device is their only source of entertainment, communication, etc. You don't NEED a car in most cases. It too is a choice.

You can get a mobile phone for pretty cheap these days to stay connected. Cars have tons of overhead even if you do not drive them. You still have to license them, insure them, fuel them, maintain them, etc.

Apple can raise prices (if this is in fact what they are doing) because the people who are dedicated technophiles will buy them. The rest will buy something cheaper. This again, is a choice we all have to make.

You clearly missed the point.

This wasn't about car vs mobile device.

The comparison was gas. More specifically petroleum. That is not easily replaceable. It has more uses beyond just a car.

So again, comparing the option of choosing not to pay for cable to the necessity of petroleum in this world is silly.

You essentially stated that a car is a necessity. It isn't. As for why Apple could raise prices. "Because They Can". Everyone is speculating on a device that hasn't been released yet. Maybe it has a crap load of features we don't know about, wireless charging, NFC, facial recognition, etc, etc. In that case would it be work an extra $100 for not having to buy 15 cables so you have one everywhere. For a lot of people the answer is YES! Not everyone will buy one but then again not everyone buys it now. There are people still using iPhone 3 & 4s because it meets their needs.

I think you missed iDavey87's point. Gas is necessary for a vast majority of people. If the prices go up we all have to deal with it (increase in price to fill up car, increase in cab fare, increaae in bus prices, etc) pretty much because it monopolizes the market. Phones are also a neccesity for some people BUT no ONE company holds the monopoly. If the iPhone increases in price, you as the user have the choice to look elsewhere to satisfy your need for a phone and save a few hundred bucks. You can not do the same thing with gas. You understand?

A car is a necessity in the majority of the US. Yes most big cities have some form of mass transit. While I live in a big city (Columbus, OH) I am on he outskirts in a suburb. No buses, no taxis, no train (no train in all of Columbus). If I want to get downtown then which is less than 20 minutes, I can't.

Your argument for a car is flawed. I can give many examples or large cities where mass transit is lacking.

An as for cutting the cord (phone line), you don't need a flagship iPhone, Android, Windows phone to cut the cord. I remember cutting the cord with my old Razr, my ulocked $150 Sony U, etc.

Since I don't need a car and never leave the house, I don't need email, internet, apps on my phone. I can always use a PC.

Where did I say there were no other alternatives for phones. The Thread is about iPhone though which is why I used them as an example. If cars ars are a necessity it's only because Americans are lazy fat slothful people. I have been to MANY countries where people do everything on bicycles. (yes I am American so don't go there). My point wasn't that If you have a car you can fill it with Milk and have it run. My point was You have a choice not to own a car. I personally own 2 and a Motorcycle. Thats a choice. iPhone, Android, Windows Phone, also a choice. But I give up. You and Davy have fun.

Only way I could see them raising the price would be for the 5.5" device so they could market it as a "pro" or similar model and aim it the same way the note is aimed, but if they do increase it, hopefully they do like the note line and also include 32gb as the base model.

Took the words right out of my mouth. It would have to be for the "Pro" version. I'm still on the fence about which one I would get personally (assuming the rumors are true.) Price is not really a factor for me- if the one I want is more expensive, I will still get it- just maybe take me longer. However, it sure would be hard to justify a purchase of a 5.5" device that's more expensive when I just bought a 32gb iPad Air this year.

I will likely sell my iPad and my older iPhone and get the top end iPhone Pro 5.5" .. I don't think I'll need both an Air and iPad if the iPhone Pro is 5.5"..

You may see many favor a single large phone rather than 2.. I prefer to keep the number of devices I have to a minimum.. Right now.. I like having the larger iPad screen.. the 4" screen is to small for large amounts of reading.. I might get by with a 5.5" screen though..

I have thought of this as well. As much as I love my iPad, oftentimes it sits at home while I'm out and about and my iPhone becomes the workhorse. At the same time, I worry about a large device like a phablet becoming too cumbersome for regular phone use. A friend at work has a Note and while it is nice for some things, it just seems silly to me to have a phone that large. I guess I will just have to wait and see...

Definitely agree with your sentiments about the possible 5.5 inch iPhone being $100 more. I would like to see Apple make 32gb the entry level model across all iPhone's. 16gb just doesn't cut it with so many great apps, music, pics, etc. and no external memory options.

I think Apple could get some serious blowback from current customers and new. Why? Their "cash in the bank." Here in the US definitely. Right now the Apple success is skewed as a bad thing by some. And don't think the Apple competitors will not use it as a marketing tool. Let alone our repugnant politicians - "how can Apple do this when they're so rich" BS. That's raw meat for pols to use as their fake "lookin out for the consumer" more BS.

Apple will take some heat unless the 6 is a NEW iPhone not a refresh even with bigger screen.

It will be interesting.

Sure there is... No one has invented a shrink ray. Making something that's very complex smaller is really hard.

The only way I'd get a larger iPhone is if it was free. I'm part of the group that wants a phone that can be operated with one hand and fits easily in your pocket. I see others on the bus with the larger phones and know that they aren't what I'm looking for.

True: I see people using phones bigger then their heads are. They look stupid in my opinion. I guess if it is your only computing device then it makes sense,,,,, but they still look stupid.

Would you spend another $100 for an even more expensive iPhone?

YES .. YES ... YES!

I change my iPhone and iPad once a year ... and sell the old ones at a very acceptable price too ;)

You like to piss money away don't you ??, if I lived in my mommy's basement I could but new ones every year too if I didn't have a mortgage and responsible bill paying, Kids what a bunch of morons and they are the future?, god help the planet.

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You beat me to it... this man is upset that he screwed himself by having kids and debt and takes it out on people that can afford it... jackass i have 2 kids, 2 carpayments, my home and i can still afford to buy me and my wife new phones when they come out...

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Look another A Hole D Bag, I can afford it too A Hole, but you are all the Spoiled Americans who have to have everything all the time, why don't you teach your mongrels about being happy with what they have you meaningless piece of shit.

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Seriously are the moderators taking the day off? Someone get this clown out of here.

Everyone decides to spend their income differently. For some its expensive cars, gambling or other vices. For may of us who follow tech sites such as this, our vices are owning the latest technology. That's fine if you want to own the same phone for several years to maximize value, but that's your choice. I would say being an "ahole" as you say would be berating someone for their own choice.

It's people like these two is the reason why everything is so overpriced, the companies get away with it because D Bags like these will buy it just because they have money, not very bright when it comes to economics, don't buy it and force companies to lower prices, DA, it couldn't be any simpler, it amazes me how people like this get to be successful and otherwise be so stupid.

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So are you saying that the 40 million or whatever number people who have purchased iPhones are all D-bags? I'm not sure I understand your argument/criticism... seems awfully troll-ish to me.

No, you got it wrong, I say hold off buying to force companies like this to sell it cheaper to us all.

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I understand - worth a try but with the general excitement (and open wallets) around anything Apple your chances of success are... probably not great.


My mom passed away a few years ago ....

But, I never lived in my parents' basement either!

I work hard but it pays good $$. So, money is not really problem when it comes to make myself happy and enjoy life ....

With that said, I'm glad the topic is not about how often I change my car! ROFLMAO

My advice to you ... time is running out ... life's too short .... stop browsing forums ... get a second job while you still have the power dragging your lazy a$$ around and stop nagging about having kids or mortgage.

P.S. Everyone else: Thank You!

Attention rjholmes123:

As a married man (you're a man, I hope!) you don't seem get laid much! Believe me. It's so obvious reading between your responses! ROFLAMO I don't blame your wife though ...

On the same note ... hey dumb ass, shut up and pay attention for a second: I found an excellent top of the line phone made for your cheap dumb ass.


Go get it and stop ripping off your skinny ass for some rumours that next iPhone $$ may go up .... just MAYBE and based on ... oh well! What can I say? The world would be so boring without morons like yourself!

For the main question, no, I wouldn't. If Apple decides to charge 100$ more on all iPhones, I'd just wait a few months out, buy a refurb/used one or stay with my iPhone for one more year. My family and I are moving away from subsides and toward T-Mobile type of plans.

The US carriers are moving way from subsides, so they won't put up with Apple's crap anymore, and neither should we. They're having no problem selling the Android phones nor pushing it to customers at their stores.

While the analyst is probably wrong, I believe Apple's changing the price line to include the potential 5.5" model. It'd be like $650 for the 4.7" iPhone and $750 for the 5.5" iPhone.

The question is what is Apple going to do for < $650, $550 for iPhone 5S and $450 for iPhone 5C?

I think Apple should go:

1. iPhone 6C: $399 and/or drop iPhone 5C to $249
2. 4.7" iPhone 6: $599
3. 5.5" iPhone 6: $699

For the iPads, Apple needs to match Nokia's tablets, no more separate LTE models, it should be the same price as the Wi-Fi iPads, just like what T-Mobile is doing. IIRC, the LTE module wouldn't eat into Apple's profits that much. They're pricing it just like the RAM modules, they cost 5-10$ for Apple but they're selling it for 100$ instead. I know 10$ for 40 million devices is still a lot, I'd think it'd go a long way for retaining most of the customers. They can make it off from the increased service-related revenues from iTunes, iCloud, and App Stores.

1. iPad mini with Retina: $399
2. iPad inc. LTE with 32GB: $499

If apple make the prices like these, many Asians people can afford to buy Apple products...

But no... The prices now are too damn expensive and their last resort is to buy from LG,HTC and Samsung... Even though they knew that they would have problems in Android OS like always lagged, always have to reformat and resetting, always have to worry about viruses....
Apple OS is the best... But the only ones who can afford is, is the top class... Rich ass people...
The average people cant afford Apple...

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In Asia, the most common complaint about iPhone is not the price but the size. Phablet is very popular in Asia.

Apple can hit two birds with one stone by releasing a cheaper and bigger iPhone 6.

I think i read somewhere on iMore articles that say, bigger screen devices are more popular in Asia... So Apple need to target their market...The reason is because Asian cant afford to buy both ipad and iphone... They could only afford to buy one device... Of course, their choice would be a larger screen device...

So i really hope apple will introduce iphone 6 with larger screen... And please dont increase the price... The current price is too damn high... Just lower a bit...

They need to know that in Asian countries, there are no contract prices like in US,Canada and UK... There are no $100 or $200 device with 2 year-contract...

Say in Malaysia, if there are contract prices for an iphone, $200 would equal to RM700.... And that would be an ideal price.. Because the minimum wage in Malaysia is RM1200..

But that's not the case... In order to get an iphone, Malaysian people have to pay full price... That is $700 or RM2400 to be precise....

So you see why Malaysian people, asians could not afford to get an iphone?

So their only choices is to buy from LG, Samsung or HTC... Even though they knew Apple device is the best amongst competitors...

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False. Price isn't the lone factor. They want larger devices and has nothing to do with your pure ignorance about not being able to afford multiple devices. Some just don't want the tiny iPhone sized screen. And android doesn't have near the issues you make it seem. IOS7 was much buggier than android. Do a little research next time..

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That's where you're wrong... Many people in southeast asia countries use android because that's the only one they can afford to get...

And yes, price is the lone factor... Dont believe me? Come and stay here for a month... I know because i'm malaysian... I know how the situation is in my country...

Some people that have used android before, after they save up some money, they"ll move to iOS ... And will not go back to android anymore...

You want to know why? Because they are average people... They arent nerd,geeks who know how to fix the viruses,root the phone or put some faster launcher...

They just want a phone that works... That is, iOS devices....

Next time, do your research bro,.. Ask people in asia... Dont just sit in front of your laptop and pretend you know what's going on in asia...

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Apparently you dont know the minimum wage in asia countries.... I pity you... So do your research next time... Ask real people in asia...

Because of the living cost is high and the minimum wage is so low, asians can only afford to buy one device...

Not like in the US where people buy a phone and a tablet...

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Why wouldn't Apple raise the price at least at launch. They already have an audience that is willing to pay a premium so why not test the limits (again)

This would absolutely stop me from upgrading to a (presumed) 6S when my upgrade is available. I waited for a few years until the 'right' phone came out; for me it was the 3GS, which was largely (but not entirely) based on having the 32GB that I thought was right. Now I NEED a 64GB, but I'm NOT going to pay more then I have been.

You're also right that Apple will do what they choose to do. Ironically this makes this entire article pointless, especially since the source is admittedly not reliable.

"However, most much-larger screened devices are currently selling in markets that prefer cheaper, not more expensive products."

Something like that. They use big-screen phones because they don't want to buy a normal-sized phone plus an iPad plus a laptop. It's not that the device is cheaper. It's that there is one device that does it all, and a big-screen phone is a reasonable compromise. (Unless you try to put it in your front jeans pocket.)

I have to admit I'm pretty confused by this article. Particularly, it states that Apple tends to give you more value every year. While that's inevitably true given the fact that advances in technology occur every year, I don't believe that Apple gives you more value every year at all. (full disclosure: I own an iPad Air and two family members own the iPad Mini with Retina display, so no Apple bashing here.)

Here's what I mean. When the iPad Mini came out in late 2012, it was priced at $329, while giving us the technology present in the iPad 2 from 2011. In 2013, a similarly designed iPad Mini with Retina display came out. I thought it was going to definitely be more expensive given the fact that displays are the most expensive parts of a tablet. I guessed $349-$379, taking into account components getting cheaper. Apple charged $399. revealing the fact that Apple does not sacrifice margins at all.

I expect the same will happen with the iPhone. If the iPhone 6 keeps the same display and only makes the phone bigger (which would still be expensive if it's still made of metal), I suspect that phone to keep the $650 price tag or maybe go up by only $50. However, if Apple goes full 1080p on the screen, I expect the device to be around $750 or more. This is because Apple, despite being a great company, likes to keep high margins. For instance, the iPhone 5s costs $199 to make and sells for $650. If it were to cost $250 to make, I would assume the retail price would at least compensate that extra $50 if not more. In contrast, Android phones tend to be more expensive to make (because of their more expensive displays and in some cases (HTC One) their more expensive bodies) yet cost the same or less (e.g. Moto X costs $212 to make, Galaxy S4 around $240, and HTC One probably around $270, and all are cheaper than the iPhone). Thus, as good as the iPhone is, I don't think I would say the value keeps increasing, at least not relative to previous years and to other brands.

The iPhone has the highest margins of all Apple devices. At this point in the product cycle Apple wants to expand their user base and is willing to sacrifice a bit of margin to attain it. The iPad has much lower margins & yet they were willing to stay competitive with the mini Retina & Air pricing. I think they’re looking forward to the day they can announce 1 billion Apple users.

One reason they can shave margin off hardware is that margins on content (apps, music, movies, etc.) has increased as the ecosystem has grown larger. I don’t recall that they said the iTunes store is being run at "slightly above cost” in the last earnings conference call. I think Apple looks at their entire product portfolio as a single entity and is shooting for ~37-38% gross margins, which is incredibly high for a company that sells so much hardware.

The 4.x" iPhone 6 will stay at the same price, $649 unsubsidized. 5s will drop to $549 & 5c to $449. The question is whether they’ll keep the 8GB 4S around in certain markets for $349 or bring the 8GB 5c down to that price. That plastic shell must be much cheaper to manufacture compared to the glass/steel of the 4S. It would also mean they could stop making the 3.5” displays and begin the countdown to stop development & support for those older phones. This lineup will kick ass in the U.S. and other subsidized markets at $199, $99 and “free”.

Even if that turns out to be true it will still sell more than the previous version. People would complain they would still purchase it

I just sold my iPhone 5S and bought a Galaxy S5 and have no regrets. Apple has fallen way behind as far as what the market wants. I personally love iOS and am still interested in what Apple brings to the table come October/September but it has got to be amazing or the death spiral starts.

Would I pay an additional $100 for the iPhone 6? Nope. I bought the original iPhone and have used them ever since. And I like the Apple ecosystem. But if they raise their prices I start looking at the competition.

Got this m8 and yeah, my 5S is getting jealous. Just got tired of the small screen. Not paying for a more expensive iPhone. iOS needs something like BlinkFeed.

Can't answer this question until I actually see what the 5.5 inch iPhone will have to offer if even that were true as well. What I can tell you is that it will have to offer a heck of a lot more than just a bigger screen for me to even begin considering if spending an extra $100 dollars on an Unlocked device (I no longer buy locked/on contract phones).

People will buy it no matter the price. We are buy a premium and good quality product. True that S5 has made a big hole $$$ to apple but but at the end iphone is iphone.

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No. Please no. I haven't even bought my first iPhone and now they're gonna increase the price. :(

If the iPhone costs more than the iPad?, only an idiot would pay that!, if Apple wants to become greedier pricks than they are now I will go with the HTC One M8, paying more is a mistake and it will help the competition grow stronger and kill Apple, don't be so greedy Apple?how much is enough you have a Trillion dollars in the bank, keep the iPhone at the same price and change to 32 gig as a standard, everyone does, keep up with the market or you will be dust in the wind.

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Here is a kick in the ass, Apple raises the price and keeps the iphone 6 the same size as the 5s just a spec bump so Apple can have a higher margin of profit, if they do this than Samsung will take over everything and Apple will fall to the back of the line as a high end Crook.

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Why raise the price of a phone because is just a little bigger. If the phone were to be different from the rest of the iPhones that will be great. I just wNt to see apple create something different againg.

Here in my country, Indonesia. There's no such thing as 'subsidized' iPhone. You have enough money, you buy it. Well it automatically places the iPhone as a premium product. About US$1000

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I won't be hesitated to spend another $100 if the next iPhone 6 has the following capabilities / features:
- a/c wifi
- bigger screen
- faster processor
- (much) bigger ram (to accomodate / to bring the potential of 64-bit OS)
- water and dust proof
- sapphire crystal on both front screen and camera
- better quality speaker (as close / better than HTC one will be best)
- bigger battery (which can last whole day with single charge)

And.... since I know that Apple WILL NOT even produce the iPhone 6 which has the capabilties / functionalities as I mentioned above, so to pay another extra $100 for it is not an option for the time being.

I always talk about your needs, and the device you are thinking about buying. If it fits your needs, you will pay more for it. If you do not need new features, you will keep your old phone, or look at other products. You really have to weigh the advantages, or disadvantages against cost. Apple is smart at making you think you need the shiny new device. "It has over 200 features" well you can count at least 8-10, but give me a list of the rest, so I can compare. I bet they have really fantastic things, but know not to release them yet. Just release enough to hold your interest so you will buy. Keep the mind set going. Look how we have a hunger for the next big thing. I guess it will always be that way.

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Consider i'm still pretty happily rocking a 4s they aren't smart enough at making me think i need a shiny new phone. Hell, really, the only thing that intrigues me about a new phone isn't even an apple specific feature it's LTE. In fact, other than LTE I can't think of anything on the 5 or 5s that's made me really feel like i just had to have this new thing. A better camera is nice but the 4s camera isn't exactly bad.

You are right, if everybody had that attitude and didn't buy everything than the prices of all of these things would come down, but stupid people who don't necessarily need it will run out and buy it just because they have the money, STUPID!!, if everybody got together and bought nothing for a whole year than all of these greedy ass companies would have no chose but to drop prices, but this would never happen, again I go back to stupid people that's the argument here.

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I agree. The iPhone 4s is an amazing phone, I've looked at some websites where the ip4s is still on top of the charts. If it wasn't Apple still won't be selling them, now. There still a need for a 4s and older devices and people are getting smarter about phone purchases, from several different factors, price, carrier, their location, length of contract, etc. had the iPhone 5s and sold it a couple of months ago, definitely was not something to upgrade to. My 4s is still very quick, IOS 7 is fluid and battery holds a good charge.... Can't complain and totally agree with ya!!

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iPhone 5S already costs between USD 800..1200 in Europe, and for this reason, plus some tohers, Apple have seen their market share gradually erode while e.g. WP has captured a good portion of the European market. Apple will be mad to ask more for an iPhone when the average price of 4.5...5 inch phones is going down fast and these devices are of very high quality with superior localized software features and services that Apple cannot match. Rather, Apple ought to start lowering their prices to meet the new standard. Had they retained their competitive advantage of, say, 2010 or thereabout, they might be in the position to increase prices... but not with their current offerings.

The only reason they would inflate the prices on new phones would be to deflate the stock of old phones.

In my opinion, considering not everywhere in the US is NYC or LA, a majority of people are a model behind, and for damn good reason. Unless the 6 adds capabilities that make it a necessity in life, unfortunately I do not see a large jump of people gravitating towards the 6. I feel that between the C and the S, there are plenty of older models that will be there for cheaper, if not free--and that's the model I've seen since the first iPhones, and the model is still apparent as they continue to release on pretty close scheduling.

But, that's my opinion.

Good opinion, this is how you fight these companies, don't buy it and they will reduce prices!!!, but the mindless American masses won't listen so that's why the prices of these things will always be out of control.

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Well--I do not exactly say "don't buy."

In my situation, I upgraded to the C because I felt no need for a fingerprint, a motion sensor, or whatever extra speed it offered. I had NO NEED for the S. Not to mention, the plastic feel on the back is not only good in the hand, but very durable, more so than the S.

(if anyone wants to pay, I'll gladly do a video of dropping the two)

Now, a few months in the bag with no password, I seem to think highly of the thumbprint now, but I could care less...and the motion sensor, processor, and camera (flash) don't do much for another $100 to me.

It isn't about the money, but the features.

It's unfortunate that millions will schedule the upgrade for a 6, but for every one of those millions, there are millions more who haven't even upgraded from their 4S. So, when the 5C and S drop again, milllllllllions will upgrade, and as I said, be behind.

But, in the end, Apple will have less inventory on their shelves--and you can only imagine how great their projections have improved for future devices (i.e. the 6), if even only over a year or so (factoring in the high and low priced phones released as well, obviously).

As I said, it isn't about the money, it's about the features, and for most of america and the world for that matter, NO MATTER how "cool" it is, the majority will upgrade for features, not price, and if the features aren't a necessity, the funnel of sales changes. Apple knows this. And for the past few releases, they've done a great job at just that--liquidation.

Plus, the world has become smarter. There are still extremely simple features in phones around the world that Apple has continued to stray away from--maybe to be unique, or maybe to not be mainstream...however, how is Apple not "mainstream?"

I just said a lot, but the main point is liquidation.

I wouldn't pay the extra $100. iphones are already overpriced in my opinion. if they raise the price i will either buy an older cheaper model or just keep my 4S for another year or two.

That's the right way of thinking, so there are still some people in America with some sense, but you are rare, don't buy a phone just because you have the money, that gives wealthy companies all the control over the prices of everything, don't buy it and send them a message that we are all not mindless robots that just buy everything just because they want it.

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A 4.7 inch iPhone should be pegged around the same price point of 5s. It's likely that they release an iPhone with a size around 5.5 inch which may attract a higher price by 100$.

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I know a price increase has to happen eventually. We live in a world of finical inflation. A $50 jump is a lot easier to swallow and would make more sense to me.

I'll admit that I haven't read every reply to this article but it seems to me that the price increase is justified for a couple of reasons:

1) Apple is now expanding it's iPhone into the Phablet arena, and the price is very comparable to the other larger screen smart phones in the market. The same price many are paying now for the Note 3. Not only do you get IOS, but you get a bigger phone that many of us have wanted for years.

2) Anytime you stress supply chains within a product category to the point of having individuals having to wait a substantial amount of time for the product (in line or for the style choice), considering an increase in price is necessary. This is not even to mention that lower volume is necessary when increased margin is increased. Demand is strong, margins even higher! In my opinion, TAKE ADVANTAGE OF IT! Remember, it's not ALL about US the consumer. Apple is in the market to make money.

I think and I hope that apple follows the product line it has built up for the ipad, with different price points avalible for different sizes. I think then the consumer would understand the reason for a higher price for a bigger screen and I think apple should market the hell out of the trade in program (recycle and reuse), cause I don't see Samsung or Nokia offering trade in programs. And it's a way for apple to tie us all in to future product updates and releases.

Bad article. Apple is talking to providers about a price increase. They never said they would want to raise the buy out price...

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Chris's question is a tautology (is more expensive and costs $100 more)...! ;)

To answer the question he had in mind - no, I wouldn't spend more to buy the latest iPhone. I don't need one and despite the trend for larger screens, find that the 4" of the 5s is fine for me at the moment. I like genuine single handed use and having had larger phones, am not convinced that for me bigger = better.