iPhone 5: Four Reasons Why It Might Cost More

March 2, 2012

No matter how many changes the device undergoes, one thing that has remained the same with each new iPhone release is the price. Apple has always priced the least expensive iPhone at $199, with the most expensive either going for $299 or $399, depending on the price. However, that may change with the iPhone 5, as sources have reported online that Apple may be looking at increasing the price of the iPhone 5. While we don’t know for sure if this will happen, we can think of at least four reasons why the iPhone 5 might just be the most expensive iPhone yet.

More Expensive iPhone 5 Would Mean Bigger Profits

No matter how hard Apple works to keep their customers happy, the fact remains that they are a business and, as such, are here to do one thing: make money. One of the easiest ways to increase their profits in 2012 would be to charge a little more for the iPhone 5.

Now, we know what you’re thinking: charging more for the iPhone 5 would lead to a backlash amongst customers. While that’s possible, it’s not very likely as the iPhone 5 is likely to be one of the most popular iPhones. Even though it’s only been less than 5 months since the iPhone 4S release, people are still clamoring for the new iPhone 5. Simply put, Apple could get away with a price hike.

According to research, the 16GB iPhone 4S sells for $599 and costs Apple roughly $196 to make, not including royalties and other costs. Surely Apple would like to increase the amount they make off of the iPhone 5 by raising the price by $50 or so.

New Processor May Cause Price Hike

We reported several weeks back about the possibility of the iPhone 5 getting a brand-spanking new A6 processor. The processor is said to be very powerful and boost the phone’s overall efficiency and perhaps battery life. Of course, with such a great processor, it’s bound to cost a little more than the iPhone 4S’ A5 processor. It would make financial sense for Apple to compensate for the more expensive processor by passing the cost on to customers.

Waterproof iPhone 5 May Cost More

It’s been several weeks since we talked about the potential of a waterproof iPhone 5. In our January article on the subject, we mentioned Liquipel, a waterproof service provider. Liquipel, as you may recall, charges $59 per iPhone to waterproof the device with a special coating. If Apple is really set to ink a deal with Liquipel to waterproof the iPhone 5 before it is given to customers, it makes perfect sense to raise the retail price of the iPhone 5. Perhaps the price will increase by the magic number of $59?

iPhone 5


Qualcomm Gobi Chipsets

Although we do think that Apple will stick with either the A5 or A6 processor in the new iPhone 5, it’s also possible that they may go the route of using one of the impressive Qualcomm Gobi Chipsets in the new phone. These chipsets are very powerful and could do a lot to improve the overall efficiency of the new iPhone 5. However, like the A6 and waterproofing, the Qualcomm Gobi Chipsets are not cheap. If Apple packs one of these bad boys into the iPhone 5, you can almost certainly expect a price bump.

What Do You Think?

Do you think it’s fair for Apple to increase the price of the iPhone 5? Would you purchase a more expensive iPhone 5? Leave us a comment below and give us your opinion on the matter.

{ 6 comments… read them below or add one }

mrs rodz March 5, 2012 at 2:06 am

AT&T is going to make money no matter what!!! you are going to have the first waterproof phone…. everyone is going to switch carriers. A Waterproof phone?!?!?! Everyone wants one of those. I dont think you would need to increase the price. (at least give the faithful existing AT&T customers the same prices we are used to)


Mr. H March 6, 2012 at 9:53 pm

Fail, why would anyone switch to AT&T to get the iPhone when you can get it on Verizon or Sprint and soon T-Mobile?


Jenna March 7, 2012 at 7:50 pm

I've been with AT&T for 9 years, give us a break indeed!


josue March 5, 2012 at 4:49 am

I read in a newspaper a long time ago, how much iphones actually cost you'll be surprised how much percent of profit apple are making out of this. That's why i suggest that the prices should stay relatiely the same since now the actual cost might be for what they are actually putting into the iphone 5 AND! Apple would still be making well over 100% profit. Do research, you'll be amazed at the type of shit that goes on behind the scenes


@dustyb0ttle March 5, 2012 at 8:09 pm

I don't think they are going this route. They didn't use gorilla glass over a few pennies. You think they'll use it even with the super high costs.


leslie March 5, 2012 at 11:48 pm

I am with ATT and I am waiting to hopefully purchase the Iphone5 with my upgrade which I am ready to use. Almost bought the 4s but now I am waiting……….. time will tell………. Apple give your customers a break, how much profit is enough!~~~~ pretty please~~~~


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