McCourt said in a research note to investors that he is confident about this premium, citing more complex production processes and higher-priced components a few reasons for the higher price.
While some people are worried that the increase in price will be putting off customers, McCourt believes that a higher number of customers will be happily paying for the increased cost of the bigger screen. And there is survey data to back up this claim.
The note is shared by MarketWatch:
A Raymond James research note, published Friday, found a growing number of iPhone users are willing to pay an extra hundred bucks for a phone with a larger screen.
“Apple will likely charge a $100 premium for the 5.5 inch version that media reports have suggested will be available a few months after the 4.7 inch version,†Raymond James analyst Tavis McCourt told clients in a note.
“Our June consumer survey points to continued growth in the willingness of iPhone users to pay $100 more for a bigger screened iPhone, with now a full one-third of survey respondents willing to pay a $100 premium,†he added.
Right now the context or scope of McCourt’s survey is not known, but the analyst isn’t the only one making such bold predictions.
Many watchers also believe that the iPhone 6 will be outdoing performance projections because of increased demand for a bigger iPhone, compatibility with Apple’s upcoming wearable, and new iOS 8 features.
Evidence says that Apple will unveil 4.7-inch and 5.5-inch iPhone 6 this fall; both will be featuring higher-res displays, faster processes and improvements, and could be seen in September.
Would you pay an extra $100 for 5.5-inch over 4.7-inch?
