14 DAY TRIAL // Apple’s anniversary iPhone 8 is rumored to cost upwards of $1,000, because of design changes that employ an OLED screen, thinner bezels, wireless charging, 3D sensing camera, and even AR features. This has convinced some analysts that the average selling price of iPhones will raise next year.
Morgan Stanley analyst Katy Huberty believes the average selling price for iPhones will reach $753 in 2018, higher than previous estimations of $675. She goes on to reassess that this year’s anniversary iPhone 8 will have a “more power efficient OLED display, wireless charging, 3D sensors and a new curved form factory,” according to the report.
The fact that the iPhone 8 will cost as much as $1,000 and the high selling rate of iPhone 7 Plus models, with a price tag of about $100 more than the standard iPhone 7, will convince Apple to set a more expensive average selling price for iPhones in the future, the analyst believes.
iPhone 7s and iPhone 7s Plus will also debut this year
Alongside the iPhone 8, Apple is expected to unveil successors to last year’s iPhone 7 and iPhone 7 Plus this September. While the smartphones will have some modest improvements in terms of components and added wireless charging, they won’t feature a dramatic design change like on the iPhone 8.
In fact, iPhone 7s and iPhone 7s Plus are expected to retain the LED screen and their prices could be up to $100 higher than last year’s models. This will set the average selling price of iPhones at about $750, according to the analyst.
It’s also worth mentioning a recent study that revealed iPhone ownership in the US reached all-time high levels, thanks to strong iPhone 7 and iPhone 7 Plus sales. Out of 85.8 million activated iPhones in the US, 15% were iPhone 7 Plus models.
70 million owners of iPhone 6 or older models might consider upgrading this year, a portion of them could go with the upcoming iPhone 8, while others might not want to spend as much as $1,000 and could pick up the iPhone 7s or iPhone 7s Plus, or even last year’s models.