Analysts suspect Apple will offer OLED 'iPhone 8' for less than $1,000, cite market forces...

Posted:
in iPhone edited April 2017
Despite an expected higher construction cost, and reports suggesting that the "iPhone 8" will start at $1,000, one financial analyst believes the 10th anniversary iPhone will retail starting at $850, only a slight premium over the "iPhone 7s" and Samsung Galaxy S8 Plus.


'iPhone 8' concept rendering by Marek Weidlich.



In an investor's note supplied to AppleInsider, Steven Milunovich from UBS sees a $70 to $90 increase in iPhone construction over the iPhone 7 Plus. Milunovich also believes that a $1000 cost at retail would hamper purchase volumes, and notes that despite the mostly fallacious notion of an Apple Tax, the company prices its products "quite competitively" in markets it enters.

Possible friction against the "iPhone 8" sales are a smaller screen than the 6.2-inch screen in the Galaxy S8 Plus, and resistance to a phone starting at $1,000.

As a result of possible sticking points, which may hamper a previously predicted "super cycle," Milunovich predicts the OLED "iPhone 8" to start at a price point between $850 and $900. Accordingly, a 256GB model will be sold for between $950 and $1,000. For comparison, the 256GB iPhone 7 Plus retails for $970.

Also predicted is a decrease in price for the "iPhone 7s" and "iPhone 7s Plus" by around $100 per model, which would give consumers a wider range of prices without any significant jumps from the newly slightly refreshed iPhone SE to the "iPhone 8." This would give Apple a better toe-hold in China, which is seeing poor demand for the iPhone SE which is said to be "an older model" according to Milunovich.

As a result of this pricing, UBS believes that 45 percent of 2018 shipments will be the OLED "iPhone 8," increasing average selling price from an earlier prediction of $667 to $692 with an unchanged gross margin of 38.5 percent.

Apple's "iPhone 8" is expected to use a 5.8-inch edge-to-edge OLED panel with a 5.1-inch practical area, the rest being dedicated to virtual buttons. Other features rumored to be included in the device are a 3D facial scanner, and other sensors embedded in the front glass of the device.

Comments

  • Reply 1 of 14
    curtis hannahcurtis hannah Posts: 1,758member
    It is to my understanding that the $1000 price is for the 256 gb model and might be the exclusive model, but if they have an $850 version  it might be for an 64gb model?, alongside the same 32/128/256 gb capacity for the 7S as last year.
    stantheman
  • Reply 2 of 14
    ravnorodomravnorodom Posts: 224member
    Even Apple prices it over $1000, it will still sell like a hot cake. Maybe iPhone 8 will have 500GB of storage?
    watto_cobra
  • Reply 3 of 14
    bonobobbonobob Posts: 181member
    Quote: This would give Apple a better toe-hold in China, which is seeing poor demand for the iPhone SE which is said to be "an older model" according to Milunovich.

    It is an older model. It runs an A9 processor, rather than the current A10. It's basically a small iPhone 6S, rather than a 7.
    edited April 2017 stantheman
  • Reply 4 of 14
    jungmarkjungmark Posts: 6,705member
    Analysts. 

    One says over $1000. Another says under $1000. Both will say they are right and Apple changed it at the last minute to spite them. 
    lkruppRayz2016netmagewatto_cobra
  • Reply 5 of 14
    macseekermacseeker Posts: 439member
    A dumb question:  What is the durability of the OLED screens?  Versus regular screens?  Thank you.
    netmagewatto_cobra
  • Reply 6 of 14
    boltsfan17boltsfan17 Posts: 2,161member
    macseeker said:
    A dumb question:  What is the durability of the OLED screens?  Versus regular screens?  Thank you.
    LCD screens are more durable than OLED.
    netmagewatto_cobra
  • Reply 7 of 14
    wood1208wood1208 Posts: 1,968member
    Hala Lu ya ! Apple will do best to offer great tech at best possible reasonable price it can.
    80s_Apple_Guywatto_cobra
  • Reply 8 of 14
    darkvaderdarkvader Posts: 329member
    macseeker said:
    A dumb question:  What is the durability of the OLED screens?  Versus regular screens?  Thank you.
    LCD screens are more durable than OLED.
    Which is why a premium model should have LCD, not OLED.

    I really hope the rumors aren't true, both on the absurdly high price and on it being OLED.
    watto_cobra
  • Reply 9 of 14
    Hey, why is everyone keep calling the 10th anniversary model "iPhone 8?" Does that nomenclature even make sense?
    edited April 2017 stantheman
  • Reply 10 of 14
    sflocalsflocal Posts: 4,652member
    bonobob said:
    Quote: This would give Apple a better toe-hold in China, which is seeing poor demand for the iPhone SE which is said to be "an older model" according to Milunovich.

    It is an older model. It runs an A9 processor, rather than the current A10. It's basically a small iPhone 6S, rather than a 7.
    So please enlighten us on what the IP7's processor can do that the SE's processor can't do that is pertinent to your belief that the SE has "poor demand" in China?
    watto_cobra
  • Reply 11 of 14
    lkrupplkrupp Posts: 7,157member
    It is to my understanding that the $1000 price is for the 256 gb model and might be the exclusive model, but if they have an $850 version  it might be for an 64gb model?, alongside the same 32/128/256 gb capacity for the 7S as last year.
    No, it is not to your understanding. This is a rumor only with absolutely no basis on fact. Unfortunately people read it and believe it is fact.
    netmagewatto_cobra
  • Reply 12 of 14
    lkrupplkrupp Posts: 7,157member
    jungmark said:
    Analysts. 

    One says over $1000. Another says under $1000. Both will say they are right and Apple changed it at the last minute to spite them. 
    Someone who gets it.
    watto_cobra
  • Reply 13 of 14
    bluefire1bluefire1 Posts: 892member
    With a phone that gorgeous and an edge-to-edge screen, who would want to put a case on it. But then again, will the naked phone shatter if dropped?

    watto_cobra
  • Reply 14 of 14
    tmaytmay Posts: 3,818member
    macseeker said:
    A dumb question:  What is the durability of the OLED screens?  Versus regular screens?  Thank you.
    OLED's are noted for fading over time, so color accuracy may be an issue even in the typical short ownership of an iPhone. It would be nice if Apple had an API(s) available to developers to calibrate the screen via hardware connected to the Lightning port. Apple would do well to provide screen recalibration for a small fee at Apple stores, for those concerned about it.
    watto_cobra
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