According to recent reports, Apple's iPhone this year will cost about a $100 more than the iPhone X, which has a $1,000 price tag.

Apple's 2018 iPhone To Be More Expensive Than iPhone X

Apple's next generation of the flagship device is expected to be priced at a steep $1,100, UBS analysts Steven Milunovich and Benjamin Wilson predicted, according to a report published by Business Insider.

Mulunovich and Wilson have based their prediction on an analysis of average sales prices (ASPs).

"Once Apple establishes a price band it typically keeps it, consistent with what we've heard from former Apple employees," the UBS told clients in a recent investor note.

The report pointed out that in recent years, Apple has been able to convince its customers to increase the amount of money they spend on its phones, which is somewhere in the range of $600 to $800.

The article also noted that the iPhone X sales numbers are worse than expected, and one of the main reasons could be the phone's hefty price tag.

However, Apple is looking to establish a whole new pricing bracket by introducing a larger-screened model of its flagship smartphone, and the price band could go north of $1,200, if the different storage variants are taken into consideration.

The next generation of iPhones will reportedly be equipped with a three lens camera on the rear panel similar to the Huawei P20 Pro, allowing users to enjoy features such as x5 optical zoom and shoot videos in super slow-motion. 

Apple's Three-Pronged Strategy

In order to make up for the price hike, the USB analysts believe that Apple could offer cheaper alternatives. For example, the iPhone 8 and its plus-sized model seemed like a good bargain when they were announced along with the iPhone X last year. Apple might also slash the prices of previous models, like it did with last year's iPhone and the iPhone SE.

According to the report, Apple could be going for the following strategy:

  • "Cascade top-of-the-line features down the price curve (screen size, camera, etc)."
  • "Move premium customers up the price curve with moderately higher prices."
  • "Establish higher price bands based on new features while tapping into lower-end markets with older devices."

Apple's Releases This Year

If the rumors are anything to go by, Apple will be releasing three new iPhone models in September. The three iPhones include a 5.8-inch model with OLED display that is believed to be Apple's follow-up to the iPhone X, a 6.5-inch "Plus" model with OLED display, and a cheaper 6.1-inch iPhone with LCD display.

There is also talk of Apple releasing an iPhone SE 2, which is estimated to be priced in the $700 to $750 range, twice as much as the iPhone SE currently costs.

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