Apple Inc. (NASDAQ:AAPL)’s upcoming iPhone 6 is going to break the company’s long-standing pricing rule. For years, the tech giant has priced its flagship smartphone at $199 on contract. But Pacific Crest analyst Andy Hargreaves says that the iPhone 6 will be priced at $299. And it will pack enough features to justify the higher price.

iPhone 6

New features in the iPhone 6 will be enough to justify the price

Hargreaves said Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930)’s Galaxy Note 3 phablet already comes at $299. The analyst has an Outperform rating on Apple Inc. (NASDAQ:AAPL) with a $635 price target. He said that the tech giant is unlikely to launch two new iPhone 6 models as rumors suggest. Instead, the company is likely to launch only one model with 4.7-inch display.The device is anticipated to feature a strong sapphire display, A8 processor, mobile payments, and Healthbook app for fitness tracking.

Wedge Partners analyst Brian Blair believes that the iPhone 6 and other upcoming Apple Inc. (NASDAQ:AAPL) products provide a lucrative opportunity for investors. Blair says the stock has at least 20% upside potential this year. He said Apple is testing a 12-inch iPad convertible, which could be announced at WWDC in June. Supply chain sources told Blair that the iWatch is likely to hit the markets in September. The wearable device is rumored to have a curved display with activity tracking, fitness monitoring and notifications. Blair says all the upcoming iPhones and iPads will have built-in TouchID for the mobile payment platform.

iPhone 6 to have a completely overhauled Maps app

Reports suggest that the iPhone 6 would come with a completely revamped Apple Maps and iTunes, and of course, iOS 8. Though Apple Inc. (NASDAQ:AAPL) released an update to its iOS 7 earlier this week, Mark Gurman of 9to5Mac says that the Cupertino-based company would add more features to its much-maligned Maps app with iOS 8. The company is likely to add directions for traveling by public transport, for which most urban users depend on Google Maps.

The App Store and iTunes offerings generated about $16 billion in 2013. Hargreaves says it will be Apple Inc. (NASDAQ:AAPL)’s second biggest profit-generating business after the iPhone in 2014. However, music sales at iTunes have been declining. According to the Los Angeles Times, the tech giant is planning to negotiate an exclusive deal for album sales through iTunes before they are launched on music streaming services.

Based on the rumors so far, the iPhone 6 seems to be worth waiting for. And with so many new features, consumers might not mind paying $299 for the device.