Apple's widely rumored high-end iPhone with an OLED display is expected to
cost upwards of $1,000, but UBS analyst Steven Milunovich believes that a base 64GB model could start at $850 to $900 in the United States. That price point would be similar to Samsung's new
Galaxy S8+, which starts at $840 to $850.
Milunovich said the flagship iPhone could start at under $1,000 as part of Apple's "mainstream luxury" pricing strategy. He also believes the 5.8-inch device will be competing at a screen size disadvantage compared to the 6.2-inch Galaxy S8+, leading him to predict Apple will adopt similar pricing as Samsung.
Milunovich thinks that a 256GB model could cost between $950 and $1,000, so the iPhone could very well be the first mainstream smartphone in the United States to have a four-digit price tag. He also predicted that the tentatively named iPhone 7s and iPhone 7s Plus will start at around $649 and $749 respectively.
An excerpt from Milunovich's latest research note obtained by
MacRumors:The research note cites UBS Asia hardware analyst Arthur Hsieh, who estimates the factory cost of the tentatively named iPhone 8 could be $70 to $90 higher than the iPhone 7 Plus, which starts at $769. Milunovich's prices appear to be merely predictions based on this information, rather than inside sources.
In addition to an edge-to-edge OLED display with narrow bezels, the iPhone 8 is expected to resemble the Galaxy S8 in many ways, including
wireless charging,
no physical Home button, and potentially
3D facial recognition and/or
iris scanning.
Touch ID might be embedded in or under the
True Tone display.
Milunovich maintains a "buy" rating for AAPL with a $151 price target. AAPL closed at an all-time high of $144.77 on Tuesday.
Article Link:
iPhone 8 Predicted to Start at $850 to $900 for 64GB Model, $950 to $1,000 for 256GB Model