Even though the official introduction of the iPhone 8 is still a few short weeks away, the device has already managed to generate a fair amount of controversy. Conflicting reports regarding the inclusion of Touch ID aside, there have been a number of indications from credible sources which point to Apple’s next-gen iPhone being priced at $1,000, if not higher. In fact, a recent analyst note from BlueFin Research Partners claims that the entry-level iPhone 8 might set users back a cool $1,100, with a more premium model sporting 256GB of storage said to retail for $1,200.

Needless to say, the notion of Apple selling a new iPhone for $1,000 makes for an eye-catching headline. Nonetheless, some of the online pushback we’ve seen regarding this alleged pricepoint seems a bit misguided. For starters, Apple’s entire business was built on selling premium devices at a premium price. Second, Apple’s top of the line iPhone 7 Plus already comes close to the $1,000 threshold, with the 256GB model currently priced at $969. And given that the iPhone’s display is typically the device’s most expensive component, it shouldn’t come as much of a surprise that the iPhone 8 — with its rumored 5.8-inch display — would cost over $1,000. Remember, Apple loves its healthy margins, and if the iPhone 8 costs more to manufacture, Apple will happily pass along those costs to consumers.

It’s also worth noting that Apple isn’t the only company with a knack for slapping an expensive price tag on its top of the line products. Earlier today, Samsung introduced its highly anticipated Note 8 and the device — which boasts a 6.3-inch display — doesn’t exactly come cheap. As we covered earlier, here’s a brief rundown of what the Note 8 will cost across every major U.S. carrier.

  • AT&T- $950
  • T-Mobile: $930
  • Verizon: $960
  • Sprint: $960

Notably, this is a significant increase in price relative to last year’s Note 7 which shipped with a price tag of $849.

All that said, if Samsung is pricing the Note 8 in the ballpark of $950, is it really that crazy to see Apple introduce the iPhone 8 with a $1,000 price point? Not really. Again, Apple has never been afraid to price its products higher than competing devices. Further, a rumor surfaced earlier today claiming that the entry-level iPhone 8 will offer users 64GB of storage, a nice improvement from the 32GB of storage available on the entry-level iPhone 7.

A life long Mac user and Apple enthusiast, Yoni Heisler has been writing about Apple and the tech industry at large for over 6 years. His writing has appeared in Edible Apple, Network World, MacLife, Macworld UK, and most recently, TUAW. When not writing about and analyzing the latest happenings with Apple, Yoni enjoys catching Improv shows in Chicago, playing soccer, and cultivating new TV show addictions, the most recent examples being The Walking Dead and Broad City.