The rumor mill has churned again about the iPhone 6 that it would have a bigger screen, and maybe even a higher price. The forecast issued by analysts at Susquehanna Financial Group, is an economical choice perhaps in contrast to the rivals.
Susquehanna International Group analyst Chris Caso said that with the launch of iPhone 5S and 5C, the profit margin from a device has been reduced because of the increased costs of electronic components which has not matched by a substantial price increase compared to previous generations. So, Apple might have in mind to widen this gap again with the future iPhone 6.
He explained, “When iPhone 5 was launched, Apple’s phone margins declined because the new features (most notably the display) added cost to the bill of materials, yet the price point of the phone remained unchanged. Since we’re expecting a host of new features in the iPhone 6 (including a larger screen), we expect the bill of materials cost of the phone to increase as well.”
The increase in price will not be huge but still substantial for consumers’ pocket for a smartphone already on the top of the most expensive smartphone podium. At present, the launch price of iPhone 5S (both subsidized and unsubsidized) is the same as the launch prices for Samsung’s Galaxy S series of flagship phones. Thus, Apple could get away with a $50 to $100 premium for a larger screen size iPhone 6, which will avoid the margin erosion, occurred when the iPhone 5 was launched.
In addition, the analysis company has also shared a possible hardware capabilities of the device, even if it appears too early compared to the little known to date. The display may be of 5/5.5 inches, and more powerful LTE connectivity, will house at least 2 GB of RAM and a 64-bit A8 processor.
It would be too early to talk about iPhone 6 release date, but it is likely to arrive early next year. Moreover, Apple seems to have interested in some Taiwanese semiconductor manufacturers, rather than giving production deal to Samsung.