Goldman Sachs analyst confirms $1,000 price tag for Apple iPhone 8

Goldman Sachs analyst confirms $1,000 price tag for Apple iPhone 8
Early in February, a source claiming to have some inside knowledge about Apple's purported ten-year anniversary handset, said that the so-called Apple iPhone 8 would carry a rather hefty price tag. According to this "insider," the Apple iPhone 8 will be priced at $1,000. Considering the rumored technology said to be on board the device, this might not seem so crazy. Besides carrying an OLED panel for the first time ever, the iPhone 8 is rumored to have an edge-to-edge display forcing Apple to embed the Touch ID fingerprint scanner under the glass. A front-facing camera using a 3D sensor has already been labeled as "revolutionary" by KGI securities analyst Ming-Chi Kuo.

Goldman Sachs analyst Simona Jankowski told clients in a new note that "We expect the iPhone 8 to have 128 GB and 256 GB models priced at $999 and $1,099, respectively." That would surpass the current top price for a 256GB Apple iPhone 7 Plus by $130. However, prices for the current models will be reduced when Apple unveils the new 2017 iPhone units later this year. At that time, Goldman's Jankowski expects Apple to price its new handsets like this:

Jankowski says that while Apple usually runs tests on multiple designs for a new model, she believes that the tech titan has "locked down" the design for the iPhone 8. The analyst also pointed out how important this premium model is to Apple. Since the company started launching a 4.7-inch and 5.5-inch iPhone every year over the last three-years, 2016 was the first time that the larger "Plus" model outsold the standard version. That could be due to the dual-camera set up that debuted on the Apple iPhone 7 Plus. The analyst expects the iPhone 8 to continue this shift by consumers to the pricier model. The Apple iPhone 6 Plus accounted for as much as 32% of the sales rung up by the 2014 iPhone handsets. The iPhone 7 Plus accounted for as much as 60% of  the sales generated by the 2016 iPhone units.

Lastly, Goldman Sachs expects the Apple iPhone 8 to include:

  • 5.8-inch OLED screen (adds $35).
  • No bezel, all screen.
  • 3D sensing (adds $20).
  • Better, faster NAND/DRAM memory (adds $16 to $29).
  • Capacity starting at 128 GB.
  • A11 processor.
  • No home button.
  • Biometric authentication.

We have plenty of time to go before Apple's usual September unveiling. Check in often!

source: BusinessInsider

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