14 DAY TRIAL // Apple is expected to announce three new iPhones this year, one of which will most likely feature an OLED display and a new design. Goldman Sachs has just made predictions about the price of new phones that Apple intends to launch.
Therefore, analysts from Goldman Sachs believe the iPhone will carry a price tag of $1,000 (£776) and Apple will most likely introduce a model with 128GB and one with 256GB of internal storage. Prices between the two models will differ, the 128GB will have a price tag of $999, while the 256GB model will cost $1,099, according to the Goldman Sachs note seen by Business Insider.
The price of the iPhone 8 would actually be $130 more than of the current most expensive iPhone, which would make some customers reluctant to buying the OLED phone.
Wireless charging and OLED display increase the cost of manufacturing
The report also reveals price estimations for the other two smartphones that Apple intends to announce later this year. The iPhone 7s Plus is expected to carry a price tag of $769 (£596), while the iPhone 7s will cost about $649 (£503). The price hike would follow a trend that Apple has been implementing for some time now, as prices for iPhones have gradually increased over the years.
The reason why Apple’s iPhone 8 will cost so much is connected to the increased cost of manufacturing. Apple will employ OLED technology on its iPhone 8, which adds $35 to the bill of materials, 3D sensing camera which adds another $20, and faster NAND/DRAM memory which adds between $16 to $29. Biometric technology, A11 processor and other features will drive the retail price up to $1,000.
Goldman Sachs also added that consumers have started to favor larger and more expensive iPhones over smaller models and, as a result, the iPhone 7 Plus has recorded the majority of Apple iPhone sales in the past quarter. The iPhone 8 is expected to be announced this fall, as recent reports have indicated that production of parts is on schedule.
