Apple’s iPhone has continually evolved in terms of features and look, but one thing that’s more or less stayed the same over the years is the price point. The cheapest new iPhone has always been priced at $199 with a two-year contract, and the most expensive iPhone has usually been $299 or $399 with a two-year contract. That’s something that might just change with the release of the iPhone 5. Although Apple generally prefers to keep each new generation of their popular devices priced the same, they might not have a choice with the iPhone 5. Why? Well, there’s several reasons for a possibly more expensive iPhone 5, which we’ll cover here.
iPhone 5 May Be More Expensive Due to Bigger Display
Take a look at many of the Android phones on the market with 4.3″ or large displays. See the pattern? They generally debut with a $299 (or perhaps higher) price tag. The more expensive price is due to a few reasons, but the biggest one is the bigger display. With the rumors of an iPhone 5 with a display as large as 4.6 inches (or an iPhone 5 with a 4 or 4.3 inch display), it’s not unthinkable that the iPhone 5 would be priced comparably to, say, the Samsung Galaxy Note which retails for $299 with two-year contract. And though some iPhone 5 potential buyers may be mad about the more expensive price tag, we still think many will be willing to pay extra for the iPhone 5 if it comes with a larger display.
4G LTE May Cause iPhone 5 Price Hike
Here’s another feature that the iPhone 5 is very likely to have: 4G LTE connectivity. It’s something that iPhone users have been requesting for a while now, and it’s something that nearly all new Android phones on the market come standard with. Although 4G LTE certainly isn’t available everywhere yet, it is a piece of technology that Apple would be crazy to ignore–which is what we saw with the new 4G LTE iPad–implementing into the iPhone 5. The only problem is that the 4G LTE technology is more expensive, which means the iPhone 5 production cost will likely increase. And a higher production price, like it or not, will be passed onto iPhone 5 buyers.
iPhone 5 May Be More Expensive Due to More Storage Space
As many iPhone 4S owners with the 16GB iPhone 4S model will tell you, the 16GB (or 13GB after the iOS space is factored in) of storage just won’t cut it when you’re taking lots of photos or high definition videos with the device. It’s also not large enough to contain many music libraries. Just as Apple phased out the 8GB iPhone 3GS model with a 16GB iPhone 4 model at the same price point, we’d expect the iPhone 5 to come with more space. The only problem is, the cost of storage hasn’t gone down, especially due to production delay problems in China. That means that if Apple only offers iPhone 5 models in 32GB, 64GB and 128GB, the price of the iPhone 5 is probable to start at $250 and run up to $400.
Higher Production Costs Means Higher Retail Cost
The iPhone is only getting more expensive to produce, much like its bigger brother the iPad. Although Apple is still reaping profits from the iPhone, they can’t expect to continue to make big money if they’re barely breaking even on the iPhone 5. That’s why we think a slight increase in price for the iPhone 5 is so likely–from a financial standpoint, it makes sense, as the iPhone 5, regardless of price, WILL be in high demand.
What Do You Think?
Would you be willing to pay more for the iPhone 5? Leave us a comment below and make your opinion heard.