Apple’s iPhablet might cost you an extra $100

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Apple is definitely making a big screen iPhone that will launch this fall, the only question is how much extra is it going to cost you?

Fanboys are notoriously willing to pay an extra Apple Tax for Macs, but some analysts are worried a bigger iPhone with bigger price tag will chase some away. Those fears will probably prove to be unrealized though according to a survey by Raymond James that claims most of Apple’s potential iPhablet customers are totally cool shelling out $100 more.

In a note to clients, Travis McCourt says the company’s June survey found that one-third of respondents were willing to pay a $100 premium for the larger screen iPhone Apple allegedly plans to announce alongside a 4.7-inch version this fall.

According to McCourt, the bigger screened iPhone will cost an extra $100 which should mean bigger profits and a higher target price for AAPL shares, thanks to the expectations of a strong upgrade cycle this year:

“Data seems to suggest meaningful demand for a larger screen, which should logically mean the iPhone 6-cycle will be strong for upgrade sales, which combined with modest contribution from wearables should cause a modest acceleration in revenue growth in fiscal 2015.”

Samsung devices have dominated the large screen smartphone market with displays measuring upwards of five inches diagonally, but Apple’s big iPhone could be its best seller ever as the category is the fastest growing in the smartphone market.

The 5.5-inch iPhone is expected to be made available a few months after the launch of a 4.7-inch iPhone 6 this fall. Apple is also getting close to announcing its first foray into wearables as well, with the latest rumors claiming an October event is already on the calendar at Apple HQ for the iWatch.

  • Adrayven

    As long as they are all wrong about the freakin ugly back.. omg.. the big fat antenna lines are so ugly.

    • mahadragon

      Yes! thank you! I thought I was the only person who thought those antenna lines looked terrible! I fully agree!

  • Scott Landis

    As long as I can still get a normal (sub-5″) sized phone for $200-$400 I don’t care what they charge for the monstrosity.

  • Steven

    I still see no way that Apple can introduce the phablet a few months after a (expected) 4.7″, unless they announce them both at the same time. Upgraders who want the largest screen possible would be furious Apple surprised a few months later with the larger size.

    I expect both in the fall. WWDC proved they’re listening to both developers and customers, so no doubt they’ve been hearing the call for a large screen.

  • AAPL_@_$101_Is_A_Done_Deal_:)

    What’s another $100 bucks over the life of the device? Insignificant. Bring it on. Any consumers who shy away from paying the extra money, that’s their problem.

    • mahadragon

      I don’t understand all the ruckus over the price increase. The device will be bigger and will probably cost more anyways. Plus, if you look at everything, cost of living goes up with everything, gas, food, clothing, etc. so why is everyone making such a big deal over a price increase?

      If Apple was increasing the price by $100 every time they came out with a new iPhone then yes, I could understand people being upset, but they aren’t doing that.

    • lucascott

      I think if there was a higher price it would be a new tier and it will come with more than just a bigger screen. Perhaps said 6XL would exist in a 32/64/128 GB since it’s kind of as much iPad as iPhone. Maybe that’s where the talk of an extra $100 is coming into play. That is the uptick in pricing for iPhones so if it doesn’t have a 16GB size the prices are starting at $100 more by default. I could see a ‘markup’ of say $50 just cause it’s a bigger size. Not totally unreasonable to me.

  • mahadragon

    “Fanboys are notoriously willing to pay an extra Apple Tax for Macs” – I don’t understand why Buster Hein is making this kind of statement on a website for Apple fans. The name of this website is “Cult of Mac”. That’s like going to a KKK meeting and calling the members there extremists. Hey Buster, if the idea of someone buying a Mac bothers you, maybe you shouldn’t write articles for Cult of Mac?

    • lucascott

      It sounds a bit like he doesn’t understand what the “Apple Tax” really is. Rather like we pay sales tax to support public schools and property tax to fund road work and police services, the Apple Tax funds all those free tech support appointments we get to have (even if your device is out of warranty you can go in for a free appointment and even free software repairs), free workshops etc.

      You buy a computer that cost you $1000 (the sales tax goes to the local city and state as well as the Feds so that’s never Apple’s money). The parts cost them perhaps $300. The rest is the ‘tax’ that keeps that Apple Store open, or pays for the warehouse staff that pulled your online order, slapped the label on etc. As well as that other stuff. It adds up. Especially when you consider that Apple is paying folks well over minimum wage, gives health insurance to part timers etc.

  • Rafterman00

    I wish they would stop showing he iPhone with that unrealistic edge to edge screen. Such a screen would make the phone unusable because you wouldn’t be able to hold it without constantly pressing on the edge of the phone and activating stuff.

    • thomas

      thinner bezels are definitely coming, only time will tell exactly how thin

      • lucascott

        There’s that word definitely again. Unless you have someone like Tim Cook saying it you really can’t use that word.

        Maybe they are, maybe they aren’t. I suspect they are although they won’t totally go away. But since I don’t have some Apple person on video saying its true I won’t claim it as a fact.

      • thomas

        I’m basing this off of the new thinner bezels on the iPad Air

  • Brandon Franklin

    iwatch in October? Maybe its going to take over the iPod nano’s role as a small iPod/iPhone/health kit accessory? Would definitely add value and justification to the purchase plus make a Beats™ bundle and you got yourself a recipe for hot cakes.

    • lucascott

      I’m not so sure about that. I think it would be great if it was an iPod as well as a Pebble type display (so much safer to look at my wrist than take out my phone on a busy street), a watch face, motion tracker etc.

      But I can’t say that I see them bundling it with anything other than maybe ‘get $30 bucks off if you buy your iWatch with an activated iPhone’ on Black Friday and/or launch day. And I can’t see it replacing the iPod Nano or Shuffle.

      • Brandon Franklin

        I was just speculating so I’m sure your right, but for the sake of (friendly) argument: think of all the people who either by one of those hideous iPhone armbands for working out or buy the nano to avoid said hideousness. a Bluetooth enabled watch with a matching headset would be perfect for them (I think) and yeah when I say bundle I’m thinking they would sell the way over priced beats headset for maybe (and yes it’s a big maybe even though their so overpriced) for a hundred dollar savings. Though more likely that savings would be an iTunes card or a few years of beats streaming. Still I stand by my statement a $300 iwatch/ beats headset bundle would sell like hot cakes

      • lucascott

        Until the Beats work equally well with all forms of music and not just high bass hiphop etc it won’t sell that well. Or it will and then be returned cause of ‘shitty’ quality. and it will get out that the Beats are being returned as ‘defective’ and so on thanks to people tweeting their dissatisfaction

  • thomas

    Honestly, now that you are going to be able to make and receive calls and texts on ur iPad mini. I don’t see the point in a iphablet

    • lucascott

      I rather agree with this. I think that Apple is more likely to go the ‘add VoIP support to iPads’ than make a phablet. in part because it seems to me that the direction of phone service, cable tv etc is headed to all being just digital data in the same pipe. I could see Apple leading that pack even.

      • thomas

        I say this because I don’t see people fitting these phablets in their pockets anyways. so you might aswell carry an iPad mini. the sizes aren’t that far apart

  • Tallest Skil

    >>Apple is definitely making a big screen iPhone that will launch this fall

    Look at all the proof you guys have…

  • MleB1

    Time came to replace / upgrade my iPhone 4 – and, sorry Tim Cook, nothing in your recent iOS 8 announcements or the always coy (and still rumour mill generated) promises of a larger iPhone has encouraged me to hold out to (maybe) the fall.
    My iPhone has been fine, but the whole iOS experience is now 7 years old and yet another row of buttons and some additional useless embedded apps – at a premium price – is simply not good enough anymore.
    I’m just wrapping up week 2 with a Samsung Note 3, with most of my 3rd Party apps intact and with an in-contract price less than half of what the 5s was going to cost me. I’m happy so far. Would’a, should’a, could’a been an iPhone, but too little, too late, too expensive.

    Pity.

    • Garrett Cox

      … iPhones are not more expensive than note 3’s. The note 3 subsidized is $300 (now $200 at bestbuy). The iPhone is $200 (now $100 at bestbuy). You must have been looking at unsubsidized iPhones, which it’s cheaper in this area also. iPhones are $700 and note 3’s are $800. So you spent an extra $100.

      • MleB1

        …except at the time I went to my Provider, the subsidized price of their two main competitors was $200 for the Note 3, so they not only matched that price but bettered it to $150. Equivalent (32 GB) 5s from all providers was $320, so no price match/better there.
        Two weeks on and I just checked online to see my Provider is quoting $280 for the 5s (32GB) – the Note 3, $200, so I maintain the Apple products are still more expensive and are still offering an experience 7 years old.

      • Garrett Cox

        Well your provider in this instance is offering a discount. Best but has iPhone 5s 32gb for $200. You can’t claim on company is more expensive because you found on of them on sale and the other not on a certain day. Don’t just look at providers websites, brows around and look at stores to see their upgrading options. Be happy but realize you could have got an iphone for the same price(32gb) or even less (16gb).

About the author

Buster HeinBuster Hein is Cult of Mac's Senior News Editor and lives in Phoenix, Arizona. Twitter: @bst3r.

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