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

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.