“Katy Huberty from Morgan Stanley and Steve Milunoich from UBS came out with reports on Apple rumored upcoming iPhone announcement with updated models and estimates for what the new iPhones 5C will be priced,” Chuck Jones reports for Forbes.
“Both have settled at $399 as compared to independent analyst Horace Dediu at Asymco who is projecting a price between $450 to $500,” Jones writes. “I’m going to take a middle ground at $425 to $450 because I believe Apple will start at a decently high but not too high price for at least three reasons.”
Jones writes, “The first is it gives the company margin dollars to play with for promotions such as the type they have implemented in India, the second is that Apple will sell a good number of them at a higher price and therefore the company generates additional profit and the third is to have a price that they could drop within six months if needed.”
Read more in the full article here.