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The next iPhone will be like a MacBook in one depressing way: price

BGR logo BGR 7/10/2017 Chris Smith

© Provided by BGR Apple’s best iPhone this year will also be the most expensive smartphone Apple ever made. The general consensus is that the entry price for the iPhone 8 will hover around $1,000. But the phone might be even more expensive than that, one storied Apple-watcher suggests.

Apple fan John Gruber a few days ago proposed a wild idea at first sight that the iPhone 8’s price could start at $1,500. That probably won’t be what the cheapest iPhone 8 will cost, but Gruber still believes the entry price for the iPhone 8 will be around $1,200. And he’s got a few compelling arguments.

When pricing a new iPhone, Apple always makes sure that the resulting profits are at anywhere 35-40% per unit, Gruber argues. But that might not be the only thing that will influence the iPhone 8’s pricing structure.

Apple also has to take into account the ability to manufacture enough devices to meet demand — which it probably won’t be able to do, because the iPhone 8 will require a variety of specific parts that might experience yield issues.

Because Apple’s iPhone price goes all the way up to $969 (for the 256GB iPhone 7 Plus), and that’s what the most expensive iPhone 7s Plus should cost, Gruber argues that the iPhone 8’s entry price will likely surpass $1,000.

If it’s too cheap, the iPhone 8 may hurt iPhone 7s and iPhone 7s Plus sales this year. If it’s too expensive, the iPhone 8 won’t sell as well as Apple would like it to.

Thus, Gruber thinks the 64GB iPhone 8’s could cost $999 or $1,099. The 256GB version, meanwhile, will cost at least $1,099 or $1,199. If supply constraints are more severe, these prices could very well go to $1,199 and $1,299. Furthermore, Gruber doesn’t think that a pricing structure of $1,249 and $1,399 is out of the question.

This is all speculation, of course, but it’s all based on sound premises — read the entire thing at this link.

But it sure looks like the iPhone 8 will be as expensive as a MacBook this year. Though there will be ways to reduce that cost, including Apple’s iPhone Upgrade Program and carrier promos.

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