'iPhone 6' Price in U.S.; 'Outperform Rating' From $100 Price Hike To Boost Apple (NASDAQ: AAPL) Shares To $635; Better Business Model But Bad News For Those Upgrading To New Flagship

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'iPhone 6' Price in U.S. could go up. iPhone buyers usually upgrade to the flagship model every two years, but would they do the same if the subsidized (carrier) price was a hundred dollars higher.

Good question. Apple (NASDAQ: AAPL ) has a loyal following, but Android has seeped into almost every smartphone market and consumers are asking the question, 'If they can buy cheaper phones that do the same thing, then why not?'

Many surfacing reports suggest that Apple will sell the iPhone 6 for a subsidized price of $299 instead of the previously stated $199.

Although that is bad news for new buyers and those who want to upgrade to the iPhone 6, it might still be the best option for Apple at this point in their business growth. Looking back at last year's flagship phones, the iPhone 5s and the iPhone 5c, the figures show that sales were less than anticipated.

In particular, the iPhone 5c tailored for the low end Chinese market was a huge flop. China presents a complex market for Cupertino-based Apple. The China mobile deal was significant but one of the problems with Chinese users is that they rarely use wireless connectivity for the Internet. Perhaps, it is too early to tap into smartphones in China when the market has an affinity for feature phones from manufacturers like Nokia mobiles, now under Microsoft.

In addition, the recently released 8GB variant to the iPhone 5c in Europe was a 'last ditch' effort to squeeze what was left of the low end market. But that has not seemed to work either, and it is unsure how it will do in the U.S. market.

According to Motley Fool, "Reports that Apple could sell its iPhone 6 at a higher price point than usual began in early March when Pacific Crest analyst Andy Hargreaves upgraded his price target for Apple stock to $635, more than $100 above today's trading price, giving the stock an outperform rating."

IBT reported, "The reason behind this was because iPhone 5C was a bit of a flop when it was released late last year. It ended up being a cheaper model of iPhone but still expensive compared to other smartphones in the market. According to Digitimes, more than 3 million iPhone 5C units are waiting for buyers, of which 2 million are stored in Pegatron's warehouses, while 1 million units are collecting dust in carriers' and retailers' shelves."

With Reports From Motley Fool, IBT, Kdramastars

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