When Apple announces the iPhone 8 / iPhone X / iPhone Edition on September 12th, it will be announcing the most expensive iPhone yet, at least according to the vast majority of rumors that have been circulating for weeks now.
The general consensus has been that Apple will offer a 64GB model at $999, a 256GB version at $1099 and a model with a massive 512GB of storage at $1199.
However, there is one group who disagrees, with UBS analysts believing Apple will offer its new flagship at a price somewhat cheaper than that. According to a note to investors that was acquired by Business Insider, UBS analysts believe the new flagship iPhone will aim to be priced somewhere below that of Samsung’s own high-end offering, the Galaxy Note 8.
UBS analyst Steven Milunovich and UBS associate analyst Benjamim Wilson said they “questioned the logic” of a $1,200 flagship iPhone […] They pointed out that Apple usually prices its flagship Plus models at a slight discount to Samsung’s premium Galaxy Note devices […] “With the Galaxy Plus at $840 and the Note at [almost] $950, we think a $900 price tag for the base OLED model makes sense.”
The theory, at least according to UBS, is that Apple likes to set prices and then develop hardware around them. Based on that, the belief is that Apple will have aimed to ensure the new high-end iPhone is less expensive than that offered by Samsung. I see it differently, however, and I honestly believe that Apple pays little to no attention to the Galaxy Note’s price when setting prices for iPhones in general, let alone one that is aimed at the highest end of the high-end market with a completely new form factor and a display that is set to change how iOS looks and operates.
Sorry folks, but I think you’ve got that one backwards – Apple designs a product and then comes at the price from the angle of making the production process as inexpensive as possible in order to achieve an affordable price.
(Source: Business Insider)
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