Please ensure Javascript is enabled for purposes of website accessibility

Here's How Much the Apple iPhone 8 Is Going to Cost

By Ashraf Eassa – Aug 25, 2017 at 11:30AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

It's not going to be as painful to your pocketbook as you might have thought.

It has been widely reported that Apple (AAPL -1.05%) is planning to launch not two new iPhone models this year, but three. The first two are expected to be upgrades to the current iPhone 7 and iPhone 7 Plus, with internal enhancements, glass backs, and potentially even upgraded liquid crystal displays in familiar form factors.

The third is expected to be an all-new design with a full-face organic light-emitting diode (OLED) display, 3D sensing capability, and potentially much more.

An Apple iPad on the left, with an Apple iPhone on the right.

Image source: Apple.

There has been much speculation as to how much the premium iPhone is going to cost, but thanks to a new report in the The New York Times, that speculation may finally be put to rest.

It's not that bad

Per the publication, the OLED iPhone will be "priced at around $999," citing "people briefed on the product."

Now, that price will probably apply to the entry-level storage configuration, which is expected to come with 64 gigabytes (GB). Apple generally offers a base storage tier as well as pricier models with more storage.

Given the rumored feature set that'll be coming to this phone, this isn't bad at all. Today's 32 GB iPhone 7 Plus sells for $769, and the top-end version with 256 GB of storage sells for $969.

Given the choice between a 64 GB OLED iPhone for $999 or a 256 GB LCD iPhone for $969, I think that the feature set, ergonomics, and aesthetics of the OLED iPhone will overwhelmingly drive customers to choose it over the LCD model.

Expect higher-priced models, too

Apple is rumored to be planning to offer the OLED iPhone in three storage configurations: 64 GB, 256 GB, and 512 GB.

If that rumor turns out to be true, then I would expect Apple to sell the 256 GB model for $1,149, and then the 512 GB model for around $1,300.

I know that for the current iPhone models, Apple charges just a $100 premium to move up each storage tier, but given the current tight supply of 3D NAND flash industrywide, coupled with the fact that in moving up each tier Apple will be giving customers an additional 192 GB and 256 GB of storage (up from 96GB and 128GB, respectively), I think Apple will charge more for additional storage this year.

Good for Apple's average selling prices

If the OLED iPhone starts at $999 and Apple sees a large portion of its iPhone sales mix shift toward that phone, then Apple should enjoy a rather large boost in iPhone average selling prices during the coming product cycle.

Significant average selling price growth, coupled with what is likely to be non-trivial unit growth (as Apple taps into the pent-up demand for iPhones with a newer, sleeker design) should drive some nice iPhone revenue growth for Apple in the coming year.

Ashraf Eassa has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Apple. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Apple Inc. Stock Quote
Apple Inc.
AAPL
$140.98 (-1.05%) $-1.50

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
332%
 
S&P 500 Returns
104%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/30/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.