Report claims Apple planning to increase iPhone 6 prices by $100

iPhone 6 4.7-inch and 5.5-inch models

The StreetInsider reports that according to Jefferies analyst Peter Misek, Apple is negotiating with carriers to raise the price of iPhone 6 by $100.

Initially carriers had refused the increase in the $199 base price, but may buckle down based on the growing interest for the iPhone 6, which is expected to come with bigger screens.

StreetInsider reports:

While the idea may seem wild at first glance, Misek said it is not as crazy as it seems. “The possibility may at first seem far-fetched in light of investor concerns regarding possible carrier subsidy and handset price cuts due to smartphone saturation and lack of differentiation,” Misek comments. “But 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.”

Apple is widely expect to launch iPhone 6 with a bigger 4.7-inch and 5.5-inch screen to compete with Android based smartphones that come with larger screens. Reports suggest that Apple could launch the 4.7-inch iPhone 6 as early as September, followed by the launch of the 5.5-inch iPhone 6 at the end of the year or early next year.

iPhone 6 may also feature Apple’s next generation A8 chip with 1GB RAM, Touch ID fingerprint sensor, and an improved 8-megapixel camera with optical image stabilization (OIS).

I think Apple will also launch a 4-inch iPhone 6, which will be available for $199 with a two-year contract, and offer the bigger iPhone 6 models at a premium. It could end up being a deal-breaker for many customers if the entry-level iPhone 6 starts at $299 as Android based smartphones that come with a bigger screen like the Galaxy S5 and HTC One (M8) are available for $199 and $229 respectively with a two-year contract.

Let me know what you think in the comments.

[via StreetInsider]