Why Apple Might Rethink Its iPhone Pricing a Little | The Street

Two well-respected analysts think Apple (AAPL) will be more flexible with its iPhone pricing this year, and they have their reasons.

On Tuesday, Morgan Stanley’s Katy Huberty forecast Apple will assign an $899 starting price to the 5.8-inch iPhone X successor that’s due to launch this year, while charging $100 more for a 6.5-inch model. She also forecast (in three base-case scenarios) that the 6.1-inch, LCD-based iPhone that’s widely to arrive will feature a starting price between $699 and $769.

For his part, Apple analyst Ming-Chi Kuo thinks the 6.1-inch iPhone, which unlike the iPhone 8 and 8-Plus is expected to support Face ID and feature an edge-to-edge display, will have a $600 to $700 starting price. He cites a cheaper display, a lack of 3D Touch support and the use of a single-lens rear camera as reasons why Apple will price the phone aggressively.

For comparison, the current 5.8-inch iPhone X features a $999 starting price (it’s often higher in foreign markets due to local taxes and/or tariffs). The 4.8-inch iPhone 8 sports a $699 starting price, and the 5.5-inch iPhone 8-Plus a $799 starting price.

Huberty and Kuo appear to be making educated guesses as to how Apple will price its 2018 iPhones, rather than relaying information from sources. However, it’s not too hard to understand why Apple could choose to be more lenient with its iPhone pricing in the fall of 2018 relative to the fall of 2017.

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Why Apple Might Rethink Its iPhone Pricing a Little.