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Analysts Say iPhone 8 ‘Unlikely’ to Cost $1200 USD

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Lately, rumours have been swirling about that the upcoming high-end iPhone could end up starting close to the $1000 USD mark, as many sources have reported, alongside 64GB, 256GB and 512GB storage options.

According to leaker Benjamin Geskin on Twitter, the iPhone 8 will start at $999 USD for the 64GB version, $1099 USD for the 256GB model, and $1199 USD for the 512GB version. However, according to a report from UBS analysts, the next iPhone — expected to be named the iPhone 8, the iPhone X, or the iPhone Edition — is “unlikely” to cost the $1,200 USD that numerous media outlets reported.

A new report from Business Insider details how UBS analysts argue that the Cupertino-based money maker “tends not to price far from the high end competition,” so if the Galaxy Note 8 costs around $950 and up, so should the so-called iPhone 8, X or Edition. UBS believes that the smartphone is more likely to start at around $900 USD for a 64GB model, increasing to $1,000 USD for a 256GB model.

“Apple tends not to price far from the high end competition,” the analysts wrote. “With the Galaxy Plus at $840 and the Note at [almost] $950, we think a $900 price tag for the base OLED model makes sense.”

Instead of thinking how much it can charge for any given device after it’s built, Apple CEO Tim Cook’s financial juggernaut purportedly starts with a “price band and profitability level,” working its way back from there.

“We don’t think Apple thinks ‘How much can we charge?’ Rather it chooses a price band worth playing in and then develops a product to fill that space,” said the analysts. “For example, Apple decided the $900-1,000 notebook market was worth entering. It then asked ‘What does our $900 MacBook look like?’ Enter the MacBook Air. If Apple cannot deliver an experience worthy of the brand at a given price band and profitability level, it does not proceed.”

If that’s the case, the newly rumored $900 USD of the 64GB OLED iPhone has long been decided, though it remains unclear if a 512 gig configuration is also in the pipeline. A 256GB SKU will almost certainly go up for pre-order right after next week’s highly anticipated announcement event, fetching $1,000 USD, according to the latest UBS forecasts.

On August 31, Apple sent out invitations for an event at its new headquarters in California on September 12. At the event, Apple is expected to announce the new iPhones alongside a new version of the Apple Watch, a new version of Apple TV that has 4K resolution, and new iOS 11 software for iPhone and iPads.

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  • Jay

    Regardless of a difference of $100USD, this phone with be one very expensive piece of glass and metal. I think the iPhone 7s plus looks much more appealing if it has wireless charging, A11 chipset, and IP68 rating. 🙂

  • SOB

    Whatever the price will be I am sure it will be 1 million Canadian dollars! 🙂

  • FragilityG4

    “sources have come forward to confirm this”

    Really? Was one of the sources Tim Cook?

  • sully54

    This is a good point. Apart from a bezel-less design, the iPhone 8 must bring something big to the table to justify the price tag.

  • iverge

    I don’t think Apple will have “something big” in their bag of tricks other than possibly including free extras such as more icloud storage and music subscription

  • Mac

    face i.d, a.i., augmented reality?

  • KBlazer07

    I’m guessing the $900US starting price is correct based on not having a finger print sensor. I think facial recognition will be cumbersome to pay with and that iPhone 2018 will bring it back. Appears from all the rumours that Apple was trying to keep it up to the last minute.

  • FragilityG4

    So roughly:

    $1240 CND
    $1360 CND
    $1490 CND

    Allegedly 😉

  • 1His_Nibs1

    $1500 CDN for a 512GB iPhone 8 or X as I’ve read elsewhere. (Potentially) WOW!!!! Perhaps it’s time to start looking somewhere other than Apple for a phone. That’s just ludicrous!

  • FragilityG4

    You can do that, plus there will always be the 7s ‘ as a choice.

  • sully54

    The thing is, AI and AR in their current form on iOS 11 doesn’t depend on hardware newer that an iPhone 7. The iPhone 8 may do it better but the currently available iPhone can do it as well

    As for face Id, it still remains to be seen if it’s better than Touch ID. It needs to be as secure, fast, and convenient for it to be at the same level of Touch ID.

    don’t get me wrong, I’m excited to see what the iPhone 8 will look like and what it can do and I’ll most likely get one. But it still worth looking at what exactly justifies the price.

  • jay

    sure maybe we all disappointed after the 12….

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