Analyst: Apple wants $100 iPhone Price Increase

Apple is reportedly pushing carriers for a US$100 increase in the price it plans to charge for the iPhone 6. Carriers have been resistent to raising the iPhone's price, but will likely succumb and pass on the cost to their customers, according to Jeffries analyst Peter Misek.

Jeffries analyst Peter Misek says Apple is going to charge $100 more for the iPhone 6Jeffries analyst Peter Misek says Apple is going to charge $100 more for the iPhone 6

Mr. Misek said the lack of differentiation among other smartphones is an achilles heel Apple can exploit, and that carriers will feel they have to offer the iPhone or risk losing customers. According to Street Insider he said,

We think this general lack of differentiation could be the reason why Apple may be able to get a price increase. Carriers realize that the iPhone 6 will likely be the only headline-worthy high-end phone launched this year and that they will lose subs if they do not offer it.

There are concerns that higher prices could drive consumers to cheaper handsets, although carriers aren't in a strong position to push back against Apple's reported plan. Carriers will likely fall in line, according to Mike McCormack, another Jeffries analys who specializes in the U.S. telecom industry, because they don't have any other option if they want to offer the iPhone.

The next iPhone, commonly referred to as the iPhone 6, is expected to sport a larger display, faster processor, improved camera, and better battery life. There is also speculation that the new model will adopt design features from the iPad Air and iPad mini.

Mr. Misek's speculation that Apple wants to raise iPhone prices doesn't, however, mean that's what will happen. The company has been actively working to draw in more users, and if pushing up handset prices will drive away more customers than it will bring in, it isn't likely we'll be spending more on their next iPhone.

Mr. Misek is maintaining his "Buy" rating at $625 target price for Apple's stock. Apple closed today at $521.68, up 2.07 (0.40%) and is currently trading after-hours at $521.15, down 0.53 (0.10%).