Although rumors have spread that Apple would bump up the iPhone 5's price in response to their court victory over Samsung, customers should most likely expect a set of choices similar to the iPhone 4S's offerings.
iPhone 5 Expected to Follow 4S Pricing
As Latinos Post reported on Tuesday, the iPhone 4S set a precedent when it priced the iPhone 4S at $199 bundled with a two-year contract. This sweet spot, meant to appeal to the budget smart phone consumer, laid the foundation for all future devices in the market. Further, the $199 price point is now home to the iPhone's strongest competitor, the Samsung Galaxy S III. If the iPhone 5 is unable to price match the S III, they would grant Samsung an edge in their endless war for market share.
Research by Gartner shows that by the end of the 2012's second quarter, Samsung held worldwide market share of 21.6%, comprised of 90,432.1 units in the mobile device market. Meanwhile, Apple only holds 6.9% of international market share, with 28,935 devices in consumers' hands.
Considering that the Galaxy S III is not on the U.S. court's potential ban list, Apple must remain competitive. Had the S III been erased from the market, claims that the iPhone 5's price would rise would hold far more weight. The S III has sold more than 10 million units within 9 months.
Regardless of speculated price hikes, the iPhone's previous two iterations maintained identical prices for their base models. Without contracts the iPhone 4 and iPhone 4S share a $649 price point for their 16 GB base models, and a cost of $749 for 32 GB models. Although the iPhone 4S changed up the pricing model by bundling a $199 version of the smartphone with a two-year contract, the fact that both phones are placed at the same value without contracts reveals a consistency in Apple's pricing model. This pattern, in combination with a leading competitor who has also occupied the $199 price point, almost assuredly forces Apple to keep its base model as close to the Galaxy S III's cost as financially possible.
Without a contract, the cost of the high-storage iPhone 5 will likely be a high one, but if you are simply upgrading your phone or renewing your contract, don't be surprised if Apple sticks to what it knows.
iPhone 5 Predicted Specs
In terms of specs, the iPhone 5 is rumored to feature a smaller 8 or 9-pin dock, an A5X dual core processor, 1 GB RAM, an 8 megapixel rear camera, a 2 megapixel front-facing camera, an improved version of Siri, Near Field Communication (NFC), and a 4-inch Retina display with a 16:9 aspect ratio.
Leaked photos of the iPhone 5's battery display a smaller dock connect and a higher capacity, according to 9to5mac.com. According to the site, the iPhone 5's battery capacity will be 1440 mAh.
Speculation also points to the inclusion of LTE, made possible by a more efficient battery design for the iPhone 5.
Expect enhanced security measures on the iPhone 5 as well, complimenting iOS 6's passbook feature, which allows Apple customers to store financial data on their phones in order to make digital transactions.