A research note written by Goldman Sachs' Simona Jankowski claims that the price of Apple's upcoming premium smartphone, the iPhone 8, will start at a whopping $1,000.
Jankowski's claim corroborates with previous reports that the price tag of the iPhone 8 will reach four figures, which would make the smartphone the most expensive one in Apple's lineup.
Apple iPhone 8 Price Tag Will Start At $1,000
According to the research note, a copy of which was seen by Business Insider, Jankowski wrote that the iPhone 8 is expected to have 128 GB and 256 GB models that carry price tags of $999 and $1,099, respectively.
The elevated price of the iPhone 8 is actually expected by most due to the many rumors surrounding its advanced features and improvements compared to previous models. According to Jankowski, the smartphone's 5.8-inch OLED screen adds $35 to the iPhone 8's cost of production, while 3D sensing technology will add $20, and a faster NAND/DRAM memory will add between $16 and $29.
Other specifications that Jankowski believes will be present in the iPhone 8 are an edge-to-edge display, Apple's A11 processor, biometric authentication, and no home button.
Will Apple Release The iPhone 8 This Year?
Various reports have clashing claims on whether Apple will be able to launch the iPhone 8 according to the traditional September to October release of new iPhone models. While some reports claim that Apple will be facing delays in the production of the smartphone due to its premium components, some reports believe that Apple has found solutions to bottlenecks and is now on track to launch the iPhone 8 alongside the iPhone 7s and iPhone 7s Plus.
Jankowski believes the latter and that Apple has finalized the design of the iPhone 8 in time to announce the premium smartphone with the iPhone 7s and iPhone 7s Plus. The analyst wrote that the iPhone 7s and iPhone 7s Plus will have prices that start at $649 and $769, respectively.
Will Customers Buy A $1,000 iPhone?
If the claim turns out to be true, the starting price of the iPhone 8 will actually be just $30 higher compared to Apple's currently most expensive iPhone model, the $969 iPhone 7 Plus with 256 GB of storage.
Apple admitted that it was surprised with the demand for the top-of-the-line iPhone 7 Plus, and so it is safe to assume that there will be significant interest in the market for a $999 iPhone 8. Jankowski added that the Plus models of the iPhone have grown in popularity with each successive release, highlighting the increasing demand for premium iPhone models.
Jankowski believes that the demand for the iPhone 8, despite its $1,000 price tag, will lead to soaring stock for Apple. She estimated that the average iPhone selling price of Apple for its fiscal year 2018 will increase 16 percent from last year to $763 due to iPhone 8, compared to the Wall Street average of $675. In addition, she increased her earnings per share forecast for Apple to $11.50 for the fiscal year, compared to the Wall Street average of $10.40.
If Jankowski's estimates hold, Apple will be looking at another breakthrough year on the back of the upcoming iPhone 8.