UBS analysts suggest the iPhone 8 will be priced $1,000 at most

When it comes to the upcoming flagship from Apple, rumors, and speculation has been rife surrounding what the device would be called, to some suggesting that eager fans would have to shell out $1,000 or more for one of these new 'mostly bezel-less' phones come later this month.

However, analyst Steven Milunovich and associate analyst Benjamin Wilson at UBS 'questioned the logic' of speculation surrounding these devices, and concluded that it was not based in reality, calling it inconsistent with how Apple sees both pricing and the market in general:

"There seems to be a belief that Apple has to charge over $1,000 for the phone. We challenge this premise. The arguments we've heard for a $1,200 phone are, 'to manage supply constraints' and 'because the phone costs more.' Both are inconsistent with how Apple thinks about pricing.

We don't think Apple thinks 'How much can we charge?' Rather it chooses a price band worth playing in and then develops a product to fill that space. [...]"

Comparisons were drawn by these analysts to how Apple approached the low-cost laptop market. Allegedly, the company discussed how it could achieve an experience worthy of the brand within the $900 to $1000 price range, and subsequently built the MacBook Air:

"[...]For example, Apple decided the $900-1,000 notebook market was worth entering. It then asked 'What does our $900 MacBook look like?' Enter the MacBook Air. If Apple cannot deliver an experience worthy of the brand at a given price band and profitability level, it does not proceed."

According to the two analysts, the next iPhone - be it called the iPhone 8 or iPhone Pro or any variation thereof - will come in two configurations, and will most likely retail for around $900 for the 64GB model, going up to $1,000 for 256GB storage tier. This is counter to previous reports that the upcoming iPhone will feature three storage tiers and that it would start at around $999.

Earlier this month, Apple sent out invites for its upcoming September 12 event to be held at the newly constructed Steve Jobs Theater and it is expected to reveal not only the next flagship in its iPhone range but also the refreshed lower-tier iPhone 7s and 7s Plus. Other than that, the company is expected to reveal a new 4K Apple TV that supports HDR among other things. The flagship iPhone is expected to go on sale on September 22 according to earlier reports.

Source: Business Insider | Image via MacRumors

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