Apple Inc. (NASDAQ:AAPL) is set to release the iPhone 5s tomorrow. The smartphone will likely have the same form factor as the iPhone 5, but its internals and functionality are going to be beefed up. With the hype surrounding the release of the iPhone 5c, it looks like Apple Inc. (NASDAQ:AAPL) is going to shake up its pricing structure for the first time in years. With that change in mind, consumers are wondering what the iPhone 5s will cost.
The current top-of-the-range iPhone is the iPhone 5. For the last three iterations of its premium smartphone, Apple Inc. (NASDAQ:AAPL) has offered direct sales to consumers with the lowest memory model selling for $649. The memory size-up costs $749, and the top iPhone has cost $849. Users don’t usually buy the iPhone unlocked, however, and most are wondering what the iPhone 5s will cost on carrier plans.
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iPhone 5S price
For the iPhone 5 with the lowest memory, Verizon charges customers $199. AT&T charges the same amount. Both of these iPhones come with mandatory two year contracts. That means you won’t pay the full cost of the iPhone 5s up front, but you will end up paying for it later.
Sprint offers the same type of deal as the two bigger carriers. The company charges users $199 for the model up front. The Sprint plan also ties customers to a contract for two years. T-Mobile offers an interesting deal for U.S. customers; an iPhone can be bought for $100 up front, but users have to pay the company $20 per month for the two years afterward.
There is little reason to believe that the iPhone 5s will cost more at carriers than the previous premium iPhones did, but there is always the chance of a change if Apple Inc. (NASDAQ:AAPL) is planning to restructure its pricing system entirely for the iPhone 5c and iPhone 5s.
iPhone 5S price change
Apple Inc. (NASDAQ:AAPL) might decide to change the price of the iPhone 5s in response to the introduction of the iPhone 5c, but such a change seems unlikely. Because it is a year into production, and following on from iPhone 4s numbers, the margins on the new line of Apple Inc. (NASDAQ:AAPL) smartphones is likely to go up.
That would leave room for Apple Inc. (NASDAQ:AAPL) to charge more for the iPhone 5s, but that seems unlikely.