Even as a number of new features will reportedly come with the upcoming iPhone 5 the entry level-price tag for the 16GB model of the device will be around $200, which is similar to the price of the iPhone 4S.
Munster indicated that the iPhone 5 will be the biggest launch for a consumer electronics product for the year. Prices will likely remain unchanged despite the possible new features of the device.
The contracts that the mobile service providers have with Apple prevent them from offering the iPhone at cheaper prices. Earlier reports have indicated that the price tag of the upcoming iPhone 5 and future models of the device will likely remain the same for the next two years even as a good amount of the revenue of Apple was used as subsidy for the device.
The competition among mobile service providers will be limited to the data plans that these companies offer while the price of the iPhone 5 will remain the same. Verizon is expected to have the edge over its competitors if the iPhone 5 will come with LTE network support. But other service providers may offer better data plans to entice users to purchase the iPhone 5 from them.
A number of Android-powered smartphones are expected to give the iPhone 5 strong competition in the market. It may possible for more Ice Cream Sandwich Android devices to be released into the market which will offer rather impressive features.
In addition to the Android-powered devices, the Windows Phone devices of Microsoft (NASDAQ:MSFT) may also offer some competition to the upcoming iPhone 5 as it will offer budget-friendly devices into the market.