Analyst Predicts iPhone 8 Will Retail For Around A Hefty $1000 For 128GB Model

Goldman Sachs analyst predicts that the upcoming flagship phone from Apple will see a massive increase in price on its various storage models taking into account increase in commodity as well as increase in offset price for the new model.

They also predict that iPhone 8 will perform relatively better in sales as compared to its elder brother, iPhone 7 and it will ultimately raise Apple's stock price in the coming months from $174 to $180. iPhone 7 had some really strong sales itself which saved Apple from a record decline and around 78.3 million units were sold during the holiday period.

Simona Jankowski is the analyst who predicts that iPhone 8 will get a probably price increase stating the reason in an excerpt from her research below:

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 (we don’t expect the iPhone 8 to come in 32GB).

But then again, another analyst Milunovich thinks otherwise:

Contrary to some perceptions, Apple prices quite competitively. Apple likes to position its entry-level products at the mid-market with "Pro/Plus" products close to competitors at the high end. Therefore, we do not think Apple will stray far from the price point of Samsung's most expensive model at $840-850 and will keep the entry OLED model at $850-900. Apple's 256GB OLED model could be $950-$1,000, but the 256GB 7 Plus already is $970.

So this is technically guesswork here but I would go with the second assumption because Galaxy S8 is going pretty strong in the market. Rather I think it is the first time Samsung actually made the S-series what a flagship is worth for and a capable upgrade from someone using the Note 5.

What are your thoughts on this? Do you think the next flagship will see a price increase? Let us know!

Source: MacRumors
Image Credit: BGR