You fanboys may have to cough up more $:
Apple could raise price of next iPhone
1:13 PM ET, 11/20/2013 - MarketWatch Databased News
SAN FRANCISCO (MarketWatch) -- It's been just two months since Apple Inc.'s iPhone 5C and iPhone 5S went on sale, but concerns about profit margins may be high enough for the company to consider raising prices on the next version of the iconic smartphone in 2014.
That's the theory put forth by Susquehanna Financial Group analyst Chris Caso, who said in a research note earlier this week that Apple may break with tradition and raise the price of the so-called iPhone 6 when the company releases the next model, likely next year. Historically, when Apple has released a new iPhone with new features, it has kept that version's price at the same level as the previous model, while cutting prices slightly on older editions of the phone.
When Apple released the iPhone 5S, it came with a base price tag of $199, and the iPhone 5C with an entry level price of $99.
However, Caso said that the iPhone 6 may come with a price increase due to the likelihood of a larger screen and other improvements that could raise the cost of the bill of materials on the device in order to make up for profit margins that declined when the company released the iPhone 5 in 2012.
Caso said it would not be surprising to see Apple raise the price of the next iPhone by $50 to $100 over the current models to account for the premium of a larger screen, in particular.
Caso holds a positive rating and $625 price target on Apple's stock.
When Apple posted its fiscal fourth-quarter results in October, it reported gross profit margins of 37% and said it was likely to maintain that level of earnings during its current quarter, which is typically its biggest period of the year in terms of revenue.
Apple shares were down by $1.43 at $518.16.
| 