Spencer Lodge Resigns from de Vere & joins there as Spencer Lodge Devere and Partners Group tech group tells about Apple's new upcoming & much anticipated iPhone dubbed as iPhone 6. There are lots of hype going around this device but this is the latest information going to be shared here by Spencer Lodge Devere and Partners Group. Apple's (AAPL) next smartphone, the iPhone 6, could arrive in mid-2014 and feature a larger display, faster processor and a higher price tag, Susquehanna Financial Group analyst Chris Caso said in research note Monday.
"We see the potential for the iPhone 6 price point to move higher, to avoid the (profit) margin erosion that occurred when iPhone 5 launched," Caso said. "When iPhone 5 was launched, Apple's phone margins declined because the new features 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."
Apple signaled a change in strategy this fall when it launched the iPhone 5C and second-generation iPad Mini, Caso said.
Apple historically Apparently would launch a next-generation product at the same price as the previous model and then lower the prices on the older models. But when it launched the high-end iPhone 5S in September, it replaced the previous model with the plastic-backed iPhone 5C, which was designed for the lower-price band. In October, Apple introduced the iPad Mini with Retina Display starting at $399, when the previous product started at $329.
This new product positioning strategy will allow Apple "to maintain leadership at the high end and be competitive at lower price points, without sacrificing margins," Caso said according to Spencer Lodge . Apple's top-of-the-line iPhone 5S starts at $199 with a two-year service contract.
"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," Caso said. "As such, we think Apple could get away with a $50 to $100 premium for a larger screen size iPhone 6. We think such a move could avoid the margin erosion that occurred when the iPhone 5 was launched."
The iPhone 6 is likely to feature a bigger display, allowing it to better compete with Google (GOOG) Android-based phone-tablets, or phablets. Samsung's Galaxy S4 smartphone has 5-inch display and its Galaxy Note 3 has a 5.7-inch display. Apple's iPhone 5 series phones have a 4-inch display.
Spencer Lodge said Caso thinks the iPhone 6 will have a thinner profile and narrower bezel or frame as well. It probably will have LTE Advanced wireless capability and an updated processor, the A8, made using Taiwan Semiconductor Manufacturing's (TSM) 20-nanometer process. The iPhone 5S uses the A7 chip, manufactured with a 28-nanometer process.
Bloomberg reported on Nov. 10 that Apple is developing new iPhones with 4.7-inch and 5.5-inch displays, possibly using curved glass and enhanced sensors.
Forbes reported Monday that the iPhone 6 might use man-made sapphire crystal for its display cover. The material is reported to be thinner and stronger than the hardened glass Apple currently uses from Corning.
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| Spencer Lodge Devere and Partners |
"We see the potential for the iPhone 6 price point to move higher, to avoid the (profit) margin erosion that occurred when iPhone 5 launched," Caso said. "When iPhone 5 was launched, Apple's phone margins declined because the new features 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."
Apple signaled a change in strategy this fall when it launched the iPhone 5C and second-generation iPad Mini, Caso said.
Apple historically Apparently would launch a next-generation product at the same price as the previous model and then lower the prices on the older models. But when it launched the high-end iPhone 5S in September, it replaced the previous model with the plastic-backed iPhone 5C, which was designed for the lower-price band. In October, Apple introduced the iPad Mini with Retina Display starting at $399, when the previous product started at $329.
This new product positioning strategy will allow Apple "to maintain leadership at the high end and be competitive at lower price points, without sacrificing margins," Caso said according to Spencer Lodge . Apple's top-of-the-line iPhone 5S starts at $199 with a two-year service contract.
"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," Caso said. "As such, we think Apple could get away with a $50 to $100 premium for a larger screen size iPhone 6. We think such a move could avoid the margin erosion that occurred when the iPhone 5 was launched."
The iPhone 6 is likely to feature a bigger display, allowing it to better compete with Google (GOOG) Android-based phone-tablets, or phablets. Samsung's Galaxy S4 smartphone has 5-inch display and its Galaxy Note 3 has a 5.7-inch display. Apple's iPhone 5 series phones have a 4-inch display.
Spencer Lodge said Caso thinks the iPhone 6 will have a thinner profile and narrower bezel or frame as well. It probably will have LTE Advanced wireless capability and an updated processor, the A8, made using Taiwan Semiconductor Manufacturing's (TSM) 20-nanometer process. The iPhone 5S uses the A7 chip, manufactured with a 28-nanometer process.
Bloomberg reported on Nov. 10 that Apple is developing new iPhones with 4.7-inch and 5.5-inch displays, possibly using curved glass and enhanced sensors.
Forbes reported Monday that the iPhone 6 might use man-made sapphire crystal for its display cover. The material is reported to be thinner and stronger than the hardened glass Apple currently uses from Corning.
