In line with a report from Jefferies’ Peter Misek earlier this year, Raymond James analyst Tavis McCourt issued a claim this morning that Apple will charge a $100 premium for the larger of two iPhone 6 models expected to launch this fall.
In a research note to investors, McCourt said he is confident Apple will charge a $100 more for the 5.5-inch version of its new smartphone, citing higher-priced components and more complex production processes as reasons for the bump…
While some folks have worried that the increase in price will put off potential customers, McCourt believes that a larger number of users will happily pay the additional cost for the bigger screen. And he says he has survey data to back this up.
MarketWatch shares the note:
A Raymond James research note, published Friday, found a growing number of iPhone users are willing to pay an extra hundred bucks for a phone with a larger screen.
“Apple will likely charge a $100 premium for the 5.5 inch version that media reports have suggested will be available a few months after the 4.7 inch version,” Raymond James analyst Tavis McCourt told clients in a note.
“Our June consumer survey points to continued growth in the willingness of iPhone users to pay $100 more for a bigger screened iPhone, with now a full one-third of survey respondents willing to pay a $100 premium,” he added.
It’s worth noting that we don’t know the context or scope of McCourt’s survey, and for what it’s worth, our own poll showed around 60% of voters would not pay an extra $100 for a larger iPhone. But the analyst isn’t alone in his bold predictions.
alleged iPhone 6 shell and chassis
Many market watchers believe the iPhone 6 is going to smash performance projections for several reasons, including pent-up demand for a larger iPhone, major new features introduced in iOS 8, and compatibility with Apple’s upcoming wearable.
Evidence thus far has pointed to Apple unveiling two new iPhones this fall: a 4.7-inch and 5.5-inch model. Both versions are said to feature higher resolution displays, faster processors and other improvements, and could launch as early as September.
So, we have to ask again. Would you pay an additional $100 for a 5.5-inch iPhone? Or is 4.7-inches enough?
Top concept image by Martin Hajek