The Mobile Minute is sponsored by SpiderCloud Wireless.
iPhone loyalists are eager to learn about the next iPhone innovations, but one analyst expects an innovation that may not be a pleasant surprise: a price increase. Analyst Peter Misek of Jeffries thinks Apple is asking carriers to accept a $300 on contract price for the iPhone 6. He says carriers are pushing back, but may end up relenting if another groundbreaking new device does not hit the market.
Samsung’s Galaxy S5 is not generally considered groundbreaking, but if sales turn out to be very strong it could weaken Apple’s position with the carriers.
Apple is under pressure from investors who became accustomed to astronimical growth rates and profit margins during the early years of the iPhone. But of course a price increase could be a risky way to try to boost profits because it could slash the iPhone’s market share.