iPhone 8 has long been touted to be an expensive phone, given its extremely high-end configuration coupled with premium components being used in its making. Simona Jankowski, an analyst from Goldman Sachs has shed more light on the possible costs involved along with the likely retail price tags for Apple's upcoming flagship phones – iPhone 8, iPhone 7s and iPhone 7s Plus.
According to the analyst's report, the OLED-based iPhone 8 is expected to cost $999 for the 128GB model or $1.099 for the premium model with 256GB of storage.
"We think the higher demand for the larger 5.8-inch form factor will be supported by the fact that iPhone 8 will have compelling new features not available in the smaller form factors," adds the report.
In a recent research note, the analyst reportedly told her clients that the entry-level models of iPhone 7s and iPhone 7s Plus could be priced around $649 and $769 respectively, which will be in line with the pricing strategy adopted for the current iPhone 7 models.
Here's an excerpt from the research note:
Relative to the 128GB iPhone 7 Plus, we estimate the new features and higher commodity prices to increase the bill of materials by over $70, which we expect Apple to offset via a $130 price increase, resulting in a starting price of $999 for the 128GB capacity and $1,099 for the 256GB capacity.
Here is the complete breakdown of iPhone 8's individual components and their corresponding costs that purportedly adds up to the total cost of $999:
- 5.8-inch OLED screen (adds $35)
- No bezel & all screen
- 3D sensing capabilities (adds $20)
- Better & faster flash storage and DRAM memory (adds $16 to $29)
- Capacity starting at 128 gigabytes
- Apple-desgined A11 processor
- No Home button
- Biometric authentication
The analyst has estimated that the average selling prices of the iPhones made in fiscal year 2018 will further shoot up by 16 percent to $763 as opposed to the $675 estimate proposed by the Wall Street Journal.
Fast Company's initial report that the flagship iPhone 8 model would cost upwards of $1,000 indeed seems to be true, as per the latest iPhone 8 price analysis report from Goldman Sachs.
Nevertheless, do let us know in the comments section below, if you would still fancy buying an expensive iPhone 8 or if you would rather choose a value-for-money Android phone as your next smart upgrade.
[Source: Business Insider]