Analyst says 2018 Apple iPhone models will be priced higher than expected

Analyst says 2018 Apple iPhone models will be priced higher than expected
Remember the backlash created by Apple last year when it priced the tenth anniversary iPhone X at $999 (64GB) and $1,149 (256GB)? Almost immediately there was talk that Apple planned to lower its prices for the 2018 models. And it also started work on a lower priced 6.1-inch iPhone with an LCD screen, no 3D Touch, and a single camera in back.

Today, Bank of America's Merill Lynch securities unit released a report to clients that says 2018 iPhone pricing will be higher than the consensus estimate forecast by Wall Street analysts. Merrill's Wamsi Mohan says that he expects the 6.5-inch unit (iPhone Xs Max is the rumored name) to be sold for $1,049. The 5.8-inch iPhone Xs will cost $999 according to Mohan, who sees the 6.1-inch model tagged at $799.

For fiscal 2019, the analyst expects Apple to record an average selling price of $815 for the iPhone. That compares to the $724 ASP recorded by Apple during its fiscal third quarter (April through June). Apple should introduce its three new iPhone models next Wednesday, September 12th. As usual, the stock has been rising going into the event. According to Mohan's report, Apple's shares have gained 17% over the last three months.


Mohan reiterated his buy recommendation on Apple with a target of $250. The shares currently trade at $222.79, down 1.8% on the day.

source: CNBC

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60 Comments

1. kevin007in

Posts: 327; Member since: Oct 28, 2015

Again the same old story , APPLE will be like......." Oh we have increased the pixel density to 50 pixels per inch, now give us $ 1200 . So called "Innovative changes"

8. Finalflash

Posts: 4063; Member since: Jul 23, 2013

Well since the carriers absorb the cost in their main markets, raising the price mainly just pushes the carriers into the red. Apple knows this and will abuse it as much as they can until the carriers just stop.

35. L0n3n1nja

Posts: 1550; Member since: Jul 12, 2016

Where do the carriers absorb the cost?

72. strategic_developer

Posts: 1627; Member since: Jul 17, 2018

Buy paying for the phone and letting you buy it on device payments vs all upfront. That is still a form of subsidizing because many can vet a phone with no money down.

38. Phullofphil

Posts: 1762; Member since: Feb 10, 2009

What are you talking about you stupid troll. Never can have a lagitament talk on Thea stories because of you dips**ts. What you said was dumb at best.

42. Phullofphil

Posts: 1762; Member since: Feb 10, 2009

What are you talking about

50. Leo_MC

Posts: 7210; Member since: Dec 02, 2011

If you don't live in a place where you are obligated to purchase Apple products, why do you care?

3. CreeDiddy

Posts: 2146; Member since: Nov 04, 2011

This is b/c of the damn Note 9 price point of $999 and $1249. Samsung will you quit acting like you are high end when you only sell less than 150 million S and Notes a year globally, and sell $300-$400 phones to fill their marketshare and phones sold.

13. DRS1977

Posts: 679; Member since: May 27, 2015

Samsung is high end. In fact they are higher end than Apple. Don't be mad you can't afford their $20,000 88 INCH Q9. Apple is a Walmart brand for people who work at McDonalds.

18. CreeDiddy

Posts: 2146; Member since: Nov 04, 2011

No response...

36. Atechguy0

Posts: 918; Member since: Aug 03, 2018

I can say the same about you and the part where you said there is more app developers for iOS than Android. It's the other way around. No response....

51. Leo_MC

Posts: 7210; Member since: Dec 02, 2011

Samsung also makes ships that are worth millions of €; if most of us can't buy those ships, it doesn't mean that their phones are automatically high end.

74. strategic_developer

Posts: 1627; Member since: Jul 17, 2018

The S and Note are high end. All of them dont have to be. Far more high end vs any other brand. No one has a phone with even all the capabilities of the S alone.

81. Leo_MC

Posts: 7210; Member since: Dec 02, 2011

I know that Samsung builds great quality phones, but that's because of its phone division and not their TV division.

82. Leo_MC

Posts: 7210; Member since: Dec 02, 2011

I know that Samsung builds great quality phones, but that's because of its phone division and not their TV division.

4. GreenMan

Posts: 2697; Member since: Nov 09, 2015

"Mohan says that he expects the 6.5-inch unit (iPhone Xs Max is the rumored name) to be sold for $1,049. The 5.8-inch iPhone Xs will cost $999 according to Mohan, who sees the 6.1-inch model tagged at $799." Hmm... I think I heard a toilet flush... Given the lackluster sales of The iPhone X; I doubt Apple would be willing to go down that road again! A whole Aussie Buck says there will be at least ONE model priced at $600 or at least under $700! Oh well, we'll see on September 12th! G'Day!

14. DolmioMan

Posts: 314; Member since: Jan 08, 2018

Who said the iPhone X sold poorly? It didn't perform as well as other iPhone generations but it sold a hell of a load more units than any other flagship this year.

75. strategic_developer

Posts: 1627; Member since: Jul 17, 2018

The prices are gonna be exactly what he said. I stated similar prices. The LCD model is be 799, with the base iPhone 9 being about $700-750. 999 and 1050 are expected for the other two 2 X models. Wont come with 128/512 storage though. Still will have lesser cameras, lower IP rating, no Jack, smaller batter, and less screen and resolution vs the S or Note at lower price.

7. Cat97

Posts: 1861; Member since: Mar 02, 2017

Pricing the new iPhones very high will be a sign of weakness and trying to milk existing customers instead of gaining new ones. I don't think Apple can afford to not increase their userbase at this point in time. It remains to be seen.

10. Foxgabanna

Posts: 587; Member since: Sep 11, 2016

Oh don't worry. Apple isn't a trillion dollar company for nothing.

11. scarface21173

Posts: 660; Member since: Aug 17, 2014

Apple need to improve profit margins year over year. Selling less phones means higher prices for the consumer.

76. strategic_developer

Posts: 1627; Member since: Jul 17, 2018

Well they've sold more phones pur year until the iPhone 6. The prices also went up every year too. Selling more wont make Apple go down in price. The one and only thing that would bring iPhone cost down, is multiple OEMs using IOS.

15. BLUEBLASTER

Posts: 926; Member since: Feb 23, 2014

I call BS on this guy.

19. Jrod99

Posts: 714; Member since: Jan 15, 2016

Prices all over the place. I heard 800 and 900 for the xs and 1000 for max. Guess we will know next week.

20. darkkjedii

Posts: 30968; Member since: Feb 05, 2011

$1049 is for the base model, 512 Max will be closer to $1400. Apple isn’t selling a 512 gig iPhone with a screen larger than the Notes for less money. Forget about that. I just hope it’s worth it. Meaning take advantage of a canvas that damn large. Split view, picture in picture, Pencil support, read deal widgets (not that crap shoved into an aggregated area). It should also have its own embedded pencil, not just be compatible with the iPad’s. Wednesday cometh.

23. Vokilam

Posts: 1181; Member since: Mar 15, 2018

I would just want pencil support. Everything else isn’t something I’d use. Except for maybe a floating calculator (I miss Samsung sometimes).

24. darkkjedii

Posts: 30968; Member since: Feb 05, 2011

I use the floating calculator quite a bit, and an edge calculator is also the first edge panel app on my Note. I’m big on multitasking, and I think the new iPhones will be great, but I’d just like to see them be more capable for the money they’ll cost. Nothing wrong with having more, especially since Apple is pretty slick, with implementation of existing features. They can make it a nice experience for us.

22. Vokilam

Posts: 1181; Member since: Mar 15, 2018

Ok so we have a prediction for “same price as last years”, now we have a prediction for “more expensive than last year”, just waiting for the “cheaper than last year” and we are gonna get one right! These “guesses” should start with, “I, analyst, have this opinion, that the next iPhone will price higher/lower/same because ______, but it’s just my guess, and I could be wrong as I’m usually am. Please refer to my other two articles that talk about other price points - so I can show my boss I’m right sometimes”.

25. Alcyone

Posts: 314; Member since: May 10, 2018

Funny thing is. Some people are more concerned about the status of their phones then the welfare of their child(ren). I know I'm not the only person to see this in the real world.

26. JCASS889

Posts: 508; Member since: May 18, 2018

I believe that the fact that people base there status in life on a phone is just a pathetic example of someone so down on there life that they have to use a piece of glass and plastic to base there life on, who cares what phone you use, seriously if you care so much about what phone other people are using is just sad and you should seek counseling for your pathetic loser life

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