Deciphering iPhone 5 price & what you will pay

Although the Apple iPhone 5 is still months away from release so many leaks and rumors about specs and features have come out that we feel we pretty much know what to expect. Of course we could all be proven wrong when Apple finally chooses to reveal all. However we haven’t put much thought yet into the iPhone 5 price and also what you are prepared to pay, so that’s what we’re looking into today.

The iPhone 5 will no doubt be a huge success, almost regardless of what specs it actually includes. Of course though it will sell even more if the specs impress and at the same time it is released with reasonable pricing. If we look at previous iPhone pricing it may give us some idea of what to expect for the iPhone 5 price.

When the iPhone 4 was released in June 2010 it cost $199 for the 16GB model or $299 for the 32GB model on contract (or unlocked $499 and $599 respectively. The current iPhone, the 4S that come out last year, is priced at $199 (16GB), $299 (32GB) or $399 (64GB) when purchased with a carrier contract. When purchasing the iPhone 4S unlocked and contract-free those prices are $649 (16GB), $749 (32GB) or $849 (64GB). Although the contract-free prices are now slightly more than for the iPhone 4, the prices for the iPhone 4S on contract remained the same as for the iPhone 4. Traditionally then we could logically expect that the pricing for the iPhone 5 will stay the same again, but is this realistic?

Apple has been making a concerted effort to rid itself of its reputation for high priced products, as seen with the efforts to keep pricing the same for the iPhone and as we’ve also seen with iPad pricing. However there has to be a limit to being able to do this and when looking at the specs that are anticipated for the iPhone 5 it makes us wonder if it would even be possible to keep pricing the same this time around.

For example just some of the rumored specs for the next-generation iPhone include a new A6 processor, LTE connectivity, increase in display size, larger battery and improved camera and those are only the tip of the iceberg. If most of these are actually included on the iPhone 5 it seems unlikely that Apple would be able to keep prices the same. On the other hand, improvements don’t always necessarily have to add to the cost of a device as some components have probably come down in price. However we somehow doubt that the lower price of some components would be to the extent that it would make up for so many new higher-priced components.

What we’d like to know then is how much you would be prepared to pay for the iPhone 5? Do you expect Apple to come up with most of the expected upgrades and manage to keep the pricing the same? Maybe you’re willing to pay more for the iPhone 5 to include everything on your wish list, or perhaps you’d rather sacrifice some improvements in order not to pay more? We’re really interested to hear your thoughts on this so let us know with your comments.


29 thoughts on “Deciphering iPhone 5 price & what you will pay”

  1. Matt Coxy says:

    Every time a new phone is released it has better specs than the last… You can’t just keep putting the price up each time. So no way should the price go up…there is a price we are willing to pay and it’s up to the manufacturers to figure it out. There is a ceiling were willing to pay.

    1. Khan says:

      We’re not talking about price on the aftermarket, where the price will rise or fall depending on demand and supply. Nor are we talking about a completely competitive market with homogeneous product where the market fully determines the price of iPhones. Apple has a ‘monopoly’ on iPhones, if you will, and sets the price; what price will maximize profit given the demand in the market is what they need to do, and that demand is very difficult to predict.

  2. ben says:

    you are all wrong, apple will set the price and it WILL be higher than ever… better specs, better phone — not market demand ( we know it will be popular). and people will pay it if they are desperate to get one so don’t tell people what they want to hear apple will set the price not you.

  3. Sammywiggans says:

    Other phones coming out right now are no more than the iPhone 4S, and they have the same, if not better specs generally, so older parts get cheaper, and new parts come in and replace the older parts at a fair price still. Apple isn’t stupid, they will make more money charging a little less than raising the price a little (or extremely). Sure, some diehard Apple fans will pay retarded amounts, but the general consumer will not pay 200-300 dollars more for an iPhone, when they can get an Android that is at least as good for a lot cheaper. I would be willing to pay about 650 again off contract.

  4. Guest says:

    I just think the off contract price is crazy, $500 is crazy enough never mind $650 people can buy a iPad for that much! I think they should lower the non contract price to $450 and if they heighten the on contract price only hire it the minimum amount to make it reasonable

  5. Nisiandrew says:

    Same prices with more memory I’m guessing probably something like $200 for 32gb ect ect but plan wise I’m expecting an overall increase across the carriers mainly just due to data especially if 4g connectivity is coming, all that Internet that you go to costs the companies something.

  6. Anonymous says:

    I’m guessing the same prices same capacity as with the 4S on contract and off. I hope it has a bezeless screen like the one pictured, larger screen at least 4 inch, and a quad core cpu with better than 8mp cam thats become stale in mobile phones now.

  7. MunchkinGrace says:

    Was there any little kindda side comment from anyone inside Apple Company, stating that an iPhone 5 is very much true and will soon be out in the market??.. Was there any??.. All we can hear and read of were just mere speculations, people reviews & comments, media highlights, media comments over Android Phones and thats all.. Theres no word from anyone inside Apple’s backyard so far!!.. So peeps.. Would all agree that Iphone 5 died when Steve Jobs died?!?

  8. Follow the patterns says:

    I would think after Steve Jobs changed the music industry, making every song 99 cents, that they would follow the same route with consistent prices

  9. dsnider says:

    What I’m looking for is a handheld that replaces my phone, my iPod touch and my iPad.  I want a two phone plan for about $100/Mo. that gives me full phone and internet access wherever I happen to be. It would be nice to get this for $199, but I will pay more if the monthly charges are less and I get all the air time and data I need.

    1. Khaleeyah95 says:

      If you live in America and you don’t mind paying the $700 for the unlocked phone you can use it with straight talk for $45.00 a month

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  11. hunter says:

    they should reallly lower the price of the iPhone unlocked like $649,is way to much $500 or $550 is. a lot better I mean I know its good but the iPad is $500 and its way bigger

  12. john says:

    what they need to think of is theres a resesion and if they put the price to high people are not going to buy it, i already no alot of people who have said if this phone is over a sertain price then they wont get it as there money has to go else where so sure’ly they have to think of that to

  13. mrmike says:

    I am hoping that the new iphone will be around $599.99 (16GB Contract free)
    but has we know nothing about the new iphone that is suppose to be coming out in september, nobody really knows how much it will cost or if there even is a iphone coming out. In my personal opinion i really hope they are coming out with a new one because i just sold my iphone 4S and now back to a crappy att flip phone so i could get top dollar out of my 4s before the price dropped if a new iphone did come out.

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