The 5.5-inch iPhone 6 could cost $100 more, but people are willing to pay

Over the past several months, there have been several rumors suggesting that a move to two different screen sizes on the iPhone 6 could come with a $100 price premium for the larger model. Rumors have indicated that Apple is planning to launch a 4.7-inch iPhone 6 around the September time frame, with an even larger 5.5-inch model coming either at the same time or up to several months later. Raymond James analyst Tavis McCourt has now weighed in with his own belief that the larger model will indeed include a $100 price premium. But according to McCourt’s survey data, consumers are showing an increasing willingness to pay that premium for a larger device.

Apple is widely expected to roll out a new iPhone with a bigger screen to meet the growing demand for such devices. Some analysts worry that bigger iPhones could be priced too high for consumers, driving some Apple fans away, but Raymond James says this may not be the case. A Raymond James research note, published Friday, found a growing number of iPhone users are willing to pay an extra hundred bucks for a phone with a larger screen. “Apple will likely charge a $100 premium for the 5.5 inch version that media reports have suggested will be available a few months after the 4.7 inch version,” Raymond James analyst Tavis McCourt told clients in a note. “Our June consumer survey points to continued growth in the willingness of iPhone users to pay $100 more for a bigger screened iPhone, with now a full one-third of survey respondents willing to pay a $100 premium,” he added. In fact, he added, “data seems to suggest meaningful demand for a larger screen, which should logically mean the iPhone 6-cycle will be strong for upgrade sales, which combined with modest contribution from wearables should cause a modest acceleration in revenue growth in fiscal 2015.”