Barclays Proposes Apple Could Lessen iPhone 8 Pricing Impact by Including Apple Music/iCloud Bundle

Discussion in 'MacRumors.com News Discussion' started by MacRumors, Sep 8, 2017.

  1. MacRumors macrumors bot

    MacRumors

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    Leading up to Apple's September 12 media event, the exact price tag of the upcoming iPhone 8 has been one of the biggest question marks surrounding the smartphone. The latest rumors describe a premium device that will start at $999 (64GB) in the United States, then rise to $1,099 (256GB), and cap at $1,199 (512GB), although of course none of these price points or storage configurations have been confirmed.

    Recently, a team of Barclays analysts including Mark Moskowitz have theorized one potential solution for the device's premium price tag: Apple could debut an iPhone 8 bundle that packs in a year's worth of Apple Music and a 200GB iCloud subscription into the cost of the smartphone (via Business Insider). In the U.S., one year of Apple Music costs around $120 at $10/month (although Apple sells gift cards that knock the annual price down to $100/year), while a 200GB monthly iCloud subscription runs at $2.99/month, equating to around $36 each year.

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    Taken from the cost of the alleged "cheapest" iPhone 8 at $1,000, users would actually be paying about $844 for the smartphone and $156 for the bundled services, which the Barclays analysts said would be "more palatable." Barclays' prediction is based on a survey of wireless service customers (see results chart below), which found that Apple "might" sell around 40.3 million standalone iPhone 8 devices, but with the Apple Music/iCloud bundle that statistic could jump to 64.4 million iPhone 8 units sold.
    While a bundle like this would be a logical move by Apple, locking iPhone 8 customers into the company's ever-growing services ecosystem, Barclays' report is just a prediction and has not yet been corroborated by any other sources as a potential launch plan. In the past, Barclays has gotten close at reporting the facts about unreleased products, but has missed some details. In November 2016, Barclays Research analysts predicted three new iPads would come in March 2017, including refreshed 9.7-inch and 12.9-inch versions and an all-new bezel-free 10.9-inch model.

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    Only a new 9.7-inch iPad launched in March of this year, while a 12.9-inch and 10.5-inch iPad Pro debuted at Apple's WWDC event in June. Analysts at Barclays have made a handful of predictions that can't yet be rated for accuracy since they concern the iPhone 8, including an expected "limited quantity" September launch, the inclusion of a True Tone display, a Lightning to headphone jack adapter in the box, and faster charging thanks to a 10W power adapter with a USB-C connector and an integrated USB-C Power Delivery chip.

    In a separate report today by DigiTimes, Taiwanese supply chain sources have corroborated many of the current rumors surrounding the iPhone 8's pre-order date and price range. Taiwan is said to be "included in the first group of markets" where the iPhone 8, iPhone 7s, and iPhone 7s Plus will be made available for pre-order, with customers in Taiwan reportedly able to place their pre-order on September 15, the sources said. This date makes sense when looking back at the past five years of iPhone launch history.

    Like previous reports, DigiTimes cites iPhone 8 prices at $999, $1,099, and $1,199 levels, with storage capacities of 64GB, 256GB, and 512GB, respectively. Samsung's monopoly of the OLED supply chain has been rumored as the explanation behind these high iPhone 8 prices. As is typical with new iPhones, the iPhone 8's launch is expected to be riddled with shortages and shipping delays, and could even ship sometime after the LCD iPhone 7s and iPhone 7s models.

    Fortunately, we're only four days away from Apple's September 12 event, where the company will reveal more information about the iPhone 8, iPhone 7s, iPhone 7s Plus, 4K Apple TV, Apple Watch Series 3, and more.

    Article Link: Barclays Proposes Apple Could Lessen iPhone 8 Pricing Impact by Including Apple Music/iCloud Bundle
     
  2. Radon87000 macrumors 604

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  3. Hustler1337, Sep 8, 2017
    Last edited: Sep 8, 2017

    Hustler1337 macrumors 68000

    Hustler1337

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    #3
    I'd much rather not be forced to pay for Apple Music and a 200GB iCloud subscription. Looks like a classic example of trying to trap users into the Apple ecosystem to me. Why not give users the option to take out these services like everyone else? Come to think of it, there won't be many users wanting the 256GB or 512GB version if they're getting 200GB of iCloud storage and Apple Music included. 64GB users will be stung once their 12 month 'free' iCloud ends, whilst 256GB/512gb users will be stung by shelling out more for their iPhones in the first place. Seems like Apple wins all round.
     
  4. Geert76 macrumors 68000

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    #4
    just make the new oled iPhone €/$ 50 cheaper instead please, I dont need Apple Music ;)

    thank you, Tim! :cool:
     
  5. Jakewilk macrumors regular

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    #5
    I this turns out to be true I would definitely by it!
     
  6. HussamRaed macrumors regular

    HussamRaed

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    Hard to imagine Apple is generous enough to throw in these "Gifts" with an iPhone. Although it kind of makes sense for an anniversary phone.
     
  7. steggerwoof macrumors member

    steggerwoof

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    #7
    What if you already have a family subscription to Apple Music and an active 200GB storage plan?
     
  8. Sunny1990 Suspended

    Sunny1990

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  9. Spendlove macrumors 6502

    Spendlove

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    #9
    To be fair I would rather have a cheaper iPhone.

    Barclays also used to be (and maybe still are) the 3rd party loan company of choice by Apple for the UK, maybe some insider knowledge so a kernel of truth here?
     
  10. HoosBruce macrumors 6502a

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  11. psac macrumors 6502a

    psac

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    A big nope. I don't buy it. They don't need to give anything away for free, and it hasn't been their style.
     
  12. Dave245 macrumors 604

    Dave245

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    Apple don't need to do this and they know it, most people who want the iPhone Edition/8 are probably already saying so at the point, but general consumers will look at it and then decide, those on contract might not notice a massive difference in overall cost (depending on deals that networks do). Personally I'm looking forward to seeing the iPhone Edition/8 at Apple's keynote on Tuesday, i already plan on pre-ordering one base off of all the leaks and rumours.
     
  13. Paradoxally macrumors 68000

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    So are we just supposed to forget the (forced) free U2 album?
     
  14. Stella macrumors G3

    Stella

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    Apple could reduce the price simply by reducing the amount of profit from each unit!
     
  15. Spendlove macrumors 6502

    Spendlove

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    Vigil for U2, that was the moment their illustrious career jumped the shark.
     
  16. Scottsoapbox macrumors 6502a

    Scottsoapbox

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    #16
    Not a deal if you don't want Apple music.

    Would be a way for Apple to pad its "paid" subscription numbers.
     
  17. joeblow7777 macrumors 603

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    #17
    I have no interest in 200GB of iCloud storage or an Apple Music subscription.
     
  18. Zxxv macrumors 68040

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    #18
    I'll take it without the bundle. So 200 cheaper right. Stop laughing people.
     
  19. RightMACatU macrumors 65816

    RightMACatU

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  20. timborama macrumors 6502a

    timborama

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    #20
    **** that. I don't want Apple Music nor iCloud storage. Note 8 looking better and better.
     
  21. Shoju macrumors regular

    Shoju

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    #21
    My thought exactly.. It would be good if they offer a family plan as well then to replace existing plans.
     
  22. ACST Suspended

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    #22
    Just give us something useful like free Applecare+, that would actually lessen the price impact.
     
  23. RightMACatU macrumors 65816

    RightMACatU

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    And... resale value next summer will be based on an MSRP of $844, not $1,000.
     
  24. Sunny1990 Suspended

    Sunny1990

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    Just a Guess from this Guy Steve.H who leaked HomePod firmware.
     
  25. Sheza macrumors 68000

    Sheza

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    #25
    This is exactly what it is, and it's a very common marketing tactic, though not one I have really seen by Apple.

    It's obviously cheaper for them to provide the services than lower the cost of the phone, so obviously that's why it is a 'free bonus' to soften the cost of the device - take it or leave it, up to you.
     

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216 September 8, 2017