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Speculation Swirls on the Price of Apple’s iPhone 8

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Jul. 4 2017, Updated 11:35 a.m. ET

A significantly more expensive iPhone

How much will Apple (AAPL) charge for the next iPhone? Apple’s CEO, Tim Cook, knows the answer but as usual, outsiders are in the dark and can only turn to speculation. Industry observers believe the next iPhone could be called the iPhone 8, iPhone 10, iPhone X, or iPhone Pro.

Analysts at Goldman Sachs (GS) recently weighed in on the next iPhone issue, claiming that Apple would price the entry-level iPhone 8, as they call it, at $1,000. At that price, a customer could take home a 128 GB storage device. The 256 GB model could start at $1,100.

These prices imply the basic iPhone 8 would be almost $130 more expensive than the most expensive iPhone on the market today.

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Possible reasons for charging a premium price

Why would Apple charge a premium price for the next iPhone? If a recent Apple supply chain leak from China (FXI) is anything to go by, higher component costs could be the reason the iPhone 8 could be the most costly iPhone ever sold.

According to DigiTimes, citing the Chinese newspaper Economic Daily News, the cost of the 3D Touch solution in the next flagship iPhone has risen nearly 150%. This could be driving the higher price tag for the iPhone 8.

In addition to the flagship iPhone 8, Apple is also expected to unveil the iPhone 7S and iPhone 7S Plus, expected to cost $650–$770.

Expected design upgrades

Apple is expected to discontinue its LCD screens in favor of OLED screens in the iPhone 8 as part of its initiative to catch Samsung (SSNLF) and other rivals. The company is also widely expected to enable wireless charging (QQQ) and eliminate the bezel in the next iPhone upgrade.

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