By Staff Writer, Nov 21, 2013 11:34 AM EST
(PHOTO CREDIT: Credit: Antonio De Rosa/ADR Studios (iPhone 6 concept))
The Apple Iphone 5s and 5c have been out on the market for only two months but analysts cannot seem to stop themselves from speculating on the features, release date and price of the highly anticipated iPhone 6. Various reports and hypotheses about the iPhone 6 guess at what features the phone will have, but most agree that Apple users should expect a mid-2014 release date. With that being said Yahoo financial analyst Douglas A. McIntyre published a report suggesting the iPhone 6 will be released at a higher price than consumers are used to.
According to McIntyre the price point of the iPhone 6 could rise in order to avoid the erosion profit margins saw with the release of the iPhone 5. When the iPhone 5 was launched Apple's phone margins fell because new features, such as the display added to the cost of materials. While the price of the iPhone 5 did not increase analysts feel the price of the iPhone 6 may increase in order to support the cost of the larger display the phone is rumored to have. Apple is looking to fix their profit margin erosion by charging consumers more.
Apple's most recent phones the iPhone 5s and the iPhone 5c have had mixed success with consumers. While the sales of the iPhone 5s are going well for Apple, the iPhone 5c, which was marketed as being cheaper has not sold well. With the success of the iPhone 5s Apple has been able to decrease the phone's lead-times from one to two weeks to three to five days. Apple was able to decrease the iPhone 5s lead time a week soon than they did for the iPhone 5.
McIntyre theorizes that Apple used a trick mastered by Steve Jobs to manipulate supply and demand. Jobs was able to increase demand for his phones by making it look like Apple was selling out of the product causing a mad rush to get the latest phone. McIntyre also suggested an alternative theory that may have nothing to do with Jobs' supply and demand tactics. Apple's competition is stronger than ever with products like the Samsung Galaxy and it seems as though consumers have a broader range of smart phone options. With the smart phone competition growing the demand for Apple's phones is not a fierce as it once was.
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news by November 21, 2013 at 11:37PM
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