Many people expect the iPhone 8 to be more expensive than the iPhone 7s and iPhone 7s Plus that are also launching this year, with some reports indicating a $1,000 price tag for the flagship handset. However, the entry price might be a lot lower than that, a new report shows.

UBS analyst Steven Milunovich said in a note to clients seen by Business Insider that the iPhone 8 will start at $870. That’s supposedly the 128GB version, as reports say there’s not going to be a 32GB iPhone 8.

Milunovich expects the 256GB iPhone 8 to cost $1,070, which would be in line with other predictions that say the iPhone 8’s price will cross the $1,000 barrier.

But at $870, a 128GB iPhone 8 would still be a great deal, and it would be in line with the expected prices for the iPhone 7s and iPhone 7s Plus. Their predecessors retail at $649 and $769, respectively — in both cases, that’s the price for 32GB versions.

Furthermore, Milunovich says that the iPhone 8 will make up for 45% of sales next year.

The iPhone 8 could help Apple further increase the average selling price of the iPhone.

“Assuming that the OLED model constitutes 45% of sales, we estimate the [iPhone average selling price] could be $730 ($783 bull, $664 bear),” Milunovich concluded.

Apple is expected to unveil its 2017 iPhones in September and launch them soon after the keynote address. It’s likely we’ll see more pricing estimates from analysts in the meantime, at least until price leaks start dropping from China before the phone’s launch, as is customary for every iPhone.

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