According to lot of rumors and reports that point to Apple launching a redesigned iPhone 8 this fall with a screen that takes up nearly the entire front of the phone.
Citing supply constraints and potentially massive demand for Apple’s iPhone 8, Apple watcher and developer John Gruber said he thinks the entry-level version of Apple’s most high-end iPhone will start at $1,200.
That’s a lot more than the $1,000 figure that has been floating around recently. Gruber, who frequently hosts Apple executives on his podcast and has correctly predicted earlier Apple moves, explained his reasoning.
Over the weekend, Apple fans and users started to seriously discuss the possibility that the next iPhone could cost a lot – some people have even speculated some more expensive models could hit $1,500.
If Apple really is facing supply constraints due to new OLED panels and possible troubles with a new fingerprint reader, Gruber said, it will start the iPhone 8 at $1,199 with 64GB of storage, or even as much as $1,249. A 256GB model would start at $1,299 or as much as $1,399, he said.
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The current iPhone 7 starts at $649 for the entry-level model.
The latest round of iPhone price speculation was spurred by writer and podcaster John Gruber, who predicted that the gold version of the first Apple Watch would cost $9,999 or more – and when it came out, it did.
Gruber just did a similar post about iPhone pricing for the new iPhone coming out this fall.
“$1,500 as a starting price is probably way too high. But I think $1,200 is quite likely as the starting price, with the high-end model at $1,300 or $1,400.”
Gruber’s logic is sound, and although he’s known to be close with Apple marketing SVP Phil Schiller, he says he has no inside Apple information on the pricing.
Basically, he argues that when Apple launches an iPhone, it has to be able to make tens of millions of them, which means that Apple sometimes can’t include as many next-generation, cutting-edge components as its competitors.
Some of those components are hard to make in volumes of tens of millions; sometimes, there simply aren’t enough of them.
If Apple were to launch an expensive iPhone, the increased price would tamp demand down, allowing Apple to take more risks and include more features and parts that might be hard to include if Apple needed to makehundreds of millions of the same iPhone.
So instead of delaying a full launch because there aren’t enough next-generation OLED screens, Apple would maintain its 30%-40% margins, and introduce a new iPhone model priced over $1,000, which it could call “Pro” or “Edition.”
It sounds to me like the OLED iPhone is a phone which Apple can’t make 40 million of per quarter, at least not today. And if that’s true, that means it should be more expensive. Not should in any moral sense, but simply because that’s how the principle of supply and demand works. When supply is constrained and demand is high, prices go higher. The higher prices alleviate demand.
Apple isn’t going to shoot itself in the foot by only releasing one new, wildly expensive iPhone this fall. Current rumors, primarily from plugged-in KGI Securities analyst Ming-Chi Kuo, suggest that Apple will launch two other, more affordable, phones alongside the redesigned iPhone.
These two devices will look more similar to the iPhone 7 and 7 Plus, and will probably remain close to them in price – closer to $700 than $1,000. These phones, according to Kuo, will have LCD screens, which are abundant in volume.
But the OLED iPhone is going to be the one that Apple fans want, so if you have your heart set on one, it’s time to start saving up. Apple usually announces new iPhone models at a media event in September.
iPhone 8 is hiding a fingerprint sensor
A variety of iPhone 8 rumors emerged over the weekend, talking about wireless charging as well as new color options, while a video showed us a hands-on preview of an iPhone 8 dummy unit. On top of that, we also have a questionable rumor from Asia that supposedly reveals a few interesting tidbits about the iPhone 8, including the phone’s name and an unexpected location for the fingerprint sensor.
We might refer to Apple’s hottest 2017 iPhone as the iPhone 8 when talking about it, but that’s probably not going to be the phone’s official name. iPhone Plus is not what we’d expect Apple to call it because it already uses the Plus moniker for the 5.5-inch iPhone. Think about it, iPhone 7s, iPhone 7s Plus, and iPhone Plus sounds silly, doesn’t it? That’s one reason why this Weibo rumor seems questionable — though it’s worth noting that no one is sure that the other two models will be called the iPhone 7s and iPhone 7s Plus.
— /LEAKS (@Slashleaks) July 11, 2017
There’s one other reason why this rumor isn’t necessarily sound right. According to this leak, the iPhone 8 would ship with wireless charging support in the box. But only the other day we heard from John Gruber, a well-connected Apple blogger, that wireless charging might not be ready in time for the iPhone 8’s launch. Gruber heard that the inductive charging accessory will be sold separately, and that the feature will be enabled once iOS 11.1 arrives.
Getting back to the Weibo leak, it also offers a few details that we’ve already heard from other sources. The report says the iPhone 8 will ship in a variety of colors, including a hue that would remind fans of the original iPhone — that seems consistent with a recent report. Furthermore, the same leak says the iPhone 8 will be available in 64GB or 256GB versions, which is also in line with previous rumors.
Finally, there’s one other exciting detail. The report says the Touch ID fingerprint sensor is still present on the iPhone 8, but it’s not embedded in the display or on the back of the phone. Instead, the sensor will be placed in that elongated home button on the side of the iPhone 8, according to this rumor.
We’re extremely skeptical, but crazier things have happened. Here’s a rough Google Translate version of this Weibo rumor.