There’s no denying that one of the best features of Samsung’s Galaxy S8 is its price. The cheapest version costs $720, which is in line with Apple’s iPhone 7 pricing. That was certainly a great surprise from Samsung for a phone that was expected to be significantly more expensive than the cheapest iPhone 7.
The iPhone 8, on the other hand, is expected to be more expensive than last year’s entry-price for the iPhone. Some rumors claimed the iPhone might cost over $1,000, and some analysts are already worried about that. But even if we assume that Apple’s cheapest iPhone 8 will cost around $1,000, the device will still sell like crazy, and all those analysts are probably wrong.
A Business Insider report says that analysts are split on whether Apple might stick with the $1,000 price tag for the high-end iPhone.
A new note from Longbow that Apple might indeed be right to charge more for the iPhone 8, given the new technologies going into the phone. The research note says that iPhone design changes have driven “a mid- to high-single digit increase” in recent years. The OLED display of the iPhone 8 and an increase in memory prices are some of the factors that could determine Apple to charge more money for the upcoming flagship.
The OLED iPhone would cost $30 more to make, the analysts said, offering an average selling price of $849 for the handset, slightly above what the Galaxy S8 Plus costs.
IHS said in a press release that it costs an estimated $307.50 to manufacture the Galaxy S8, which is $43.34 more than the Galaxy S7, and $80 more than the iPhone 7. But Samsung decided not to raise the price of the phone. On the other hand, unlike Apple, Samsung had to take to factor a certain unexpected phone recall when deciding the price of the Galaxy S8.
“With a likely shift in form factor for the [anniversary iPhone] with accounting for memory prices that are up 30%+, the high-end model should carry a higher price point relative to the $769 for the iPhone 7 Plus,” the report says. “Whether a rumored $1,000 price point becomes reality is unknown, but for a point of comparison, Samsung’s new S8 Plus is retailing for $840 USD and initial demand for the S8 is higher vs. last year.”
Apple has largely kept in place the same iPhone price for years. Last year, it only charged $20 more for the new Plus model compared to the 2015 edition, but it doubled storage at every tier for both 4.7-inch and 5.5-inch versions. That said, Apple managed to increase the average selling price of the iPhone, which means people are still ready to pay a premium price for Apple smartphones.
Even if the iPhone 8’s price does pass the psychological barrier of $1,000, it still won’t be a problem for many Apple customers. After all, Apple has an iPhone Upgrade Program in place that makes it easier to upgrade, and carriers will stop at nothing to convince you to buy the latest iPhone. Yes, the more expensive the iPhone is, the harder it is for customers in emerging markets to get one, not to mention that it might make the Galaxy S8 seem even more appealing. But regardless of what Apple asks for the iPhone 8 at launch, it’ll likely sell better than any smartphone that launches this year. Get your wallets ready!