For the moment, let’s accept as fact that Apple is releasing two sizes of its next generation iPhone later this year, a detail widely rumored and finding support through a number of leaks, but still not full-on confirmed. Assuming Apple goes ahead and does this, what might that mean for how these phones are sold? The 4.7-inch model would presumably be the new default iPhone, replacing the 4-inch 5S, with the 5.5-inch model available as a phablet-like option for users wanting a larger device. It’s not a stretch to imagine we’re looking at about the same $200 on-contract starting price for the lowest storage capacity 4.7-inch iPhone 6, but what would that mean for the 5.5-incher? Recent analyst reports suggest the 5.5-inch model could ultimately arrive with a $100 premium.
More than that Apple might release the 5.5-inch iPhone 6 for $100 more than the 4.7-inch model, these reports suggest that a good number of shoppers are actually willing to pay that extra amount. The idea of the premium $300 on-contract smartphone has been one the US market has struggled with, not fully catching on outside a few unique devices, but Apple could well be the company to bring this price point more attention.
That kind of pricing could also help boost Apple’s margins, and analysts are already raising target prices for Apple stock as a result.