IPhone 5S Price May See A $100 Cut After IPhone 6 Launch

Posted: Sep 6 2014, 4:06am CDT | by , Updated: Sep 6 2014, 4:36am CDT, in News | Apple


iPhone 5S Price may see a $100 Cut after iPhone 6 Launch
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Apple is expected to cut the price of iPhone 5S after the launch of two new iPhone 6 models on September 9th. Rumors are rife about the launch of a plastic iPhone 5S.

Apple is all set to launch its next generation iPhone models on September 9th. Apple has already sent invites for a media event coming Tuesday. Tim Cook is expected to launch two high-end and larger iPhone 6 models during the event.

The expected two iPhone 6 models are reported to come with 4.7-inch and 5.5-inch displays. But what will happen to the current generation of iPhone 5S and iPhone 5C models.

Will Apple continue producing both the current models or drop any one of these? This is a big question. Different analysts have different opinions. Last year, iPhone discontinued the production of iPhone 5. However, iPhone 4S is still in the market.

What will Apple do this year with the current generation of iPhone models including iPhone 4S, iPhone 5S and iPhone 5C? Gartner's mobility analyst, Van Baker, thinks that Apple will discontinue the production of both iPhone 4S and iPhone 5S, and the iPhone 5C will get a price drop.

But I do not think that Apple will drop iPhone 5S because it outsold iPhone 5C. And if we look at the past 5 years, Apple always sold three iPhones after the launch of its new iPhone. 

Also Apple is widely rumored to launch "a mobile payment app that would integrate heavily with the phone's fingerprint sensor -- available on the iPhone 5S but not the iPhone 5C," reported CNN.

Hence, Apple can drop the price of iPhone 5S and continue it along with two new iPhone models. So if Apple has to drop any of the older iPhones, the most likely options would be the iPhone 4S and iPhone 5C. 

But analysts have no consensus about what will happen to the iPhone 5S after the launch of two new iPhone 6 models. Rumors are also circulating that Apple can launch a plastic iPhone 5S. It might be called iPhone 5S-C or iPhone 6C.

Just like last year's launch of iPhone 5C, when Apple discontinued iPhone 5 and launched a plastic iPhone 5C, the tech giant may do same with iPhone 5S.

"By having a plastic model, the company can reduce the pressure on the production process," said Horace Dediu, analyst at Asymco. "It's not entirely about margins or cost but also about flexibility, ramp time and slack in manufacturing."

Analysts think that people like various colors of plastic casings of iPhone 5C, but not its low-end features. So people would prefer to spend $100 more to get a colorful new iPhone with better features than the iPhone 5C.

But Dediu thinks the name iPhone 5S-C is not that good. So a much better name for a plastic iPhone 5S is iPhone 6C.

"I think the colored plastic worked but the price didn't," said Frank Gillett, principal analyst at Forrester Research. "People like the colors, but ... I think people were more willing to spend the extra $100 to get the newer technology and the metal body than expected."

But there are analysts that think that Apple will not launch another plastic model this year. "Probably, the [plastic] experiment is over," said Trip Chowdhry, managing director of Global Equities Research. "[The iPhone 5C] was a poorly positioned product."

And a Nomura analyst, Stuart Jeffrey, who talked to Apple's suppliers, denies any opportunity of a plastic iPhone 5S.

"I suspect that the 5S will retain its current form factor and materials, and see a $100 price cut," said Stuart Jeffrey, analyst at Nomura. "Our checks [on the supply chain] suggest that the 5S case is not changing this year."

No clear consensus at all. We will know the future of iPhone 5S (in terms of price, shape, features and continuity) on September 9. Hold on guys and just wait for 3 more days to see how the exact situation unfolds.

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The Author

<a href="/latest_stories/all/all/20" rel="author">Sumayah Aamir</a>
Sumayah Aamir (Google+) has deep experience in analyzing the latest trends.




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