High Price of iPhone 8 Is Due to Newer Components and Technology, Not Necessarily Higher Margins, Claim Analysts

An edge-to-edge glass, OLED panel, facial recognition, and 10nm FinFET SoC all fit in a really costly iPhone 8. According to analysts, Apple is not looking to boost a distinction margins with a approaching launch of a iPhone 8 and is really not looking to piggy behind on a bezel-less smartphone’s pre-launch recognition interjection to all a hype combined given final year. Instead, a rumored high cost tab is interjection to all a additions in a handset that have not been seen before in any iPhone iteration to date.

UBS Estimates That a Total Components Price Increase Mounts to $80 – To Maintain Similar Profit Margins, Apple Will Have to Keep a Price of a iPhone 8 during $900 and Above

Earlier, UBS analysts settled that it would not make clarity for Apple to cost a iPhone 8 during a whopping $1,200 given it would tumble out of foe with a likes of a Galaxy Note 8. Instead, these analysts trust that a phone’s bottom indication will come with a $900 cost tag and will be accessible in dual storage models.

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This $900 cost tab will be a outcome of costly components benefaction in a phone and not since Apple wants to take a margins to a whole new level, according to UBS. The analysts have noted a components’ pricing below:

• OLED screen: $24 some-more costly
• Dual lens camera: $19 some-more costly
• 3D intuiting technology: $10.50 some-more costly
• Others: $26.50

This will outcome in a components’ cost boost of $80, definition that in sequence for Apple to say identical margins of a iPhone 7 and iPhone 7 Plus, it will have to cost a iPhone 8 during $900. This competence be a bit tough to fathom for consumers, though a reward cost will assistance them benefit entrance to a lot of disdainful features, and ocular upgrades.

Plus a $900 cost tab is in line with a cost of a Galaxy Note 8, so a dual will be competing with one another in a accumulation of opposite categories.

Will we buy a iPhone 8 for a $900 starting price? Tell us your thoughts down in a comments.

Source: Business Insider