Apple iPhone 8 Price Starts at $870, Not $999 Says UBS Analyst

Joanna Estrada
May 25, 2017

In the last quarter, Apple's Services segment earned $7.17 billion, compared to $6 billion in the same quarter past year. After combining that massive installed base with the high retention rate Apple has enjoyed for years, he feels that the iPhone 8 "will unleash pent-up demand" that will push units to 229 million shipments this year, 250 million next year, and 270 million in 2019.

Sales of iPhones had been declining over the past few quarters before they rebounded during the first quarter, which included the holidays.

Jankowski also said that Apple is likely to ditch the 32GB variant and 64GB variant of iPhone 8 this year and opt for manufacturing the devices with higher memory capacity only. Also, this would mean that Apple might shift from their continuing trend of making iPhone thinner with every next release.

The iPhone giant has been focused on been focused on luring over Android users for a while now, and Apple CEO Tim Cook likes to throw out statistics about the number of "switchers" from Android to iPhone, indicating that it is one of the data points that Apple closely watches.

With bigger screen size, the experts believe that the developers at Apple will also tweak other features and settings of the phone.

Daryanani cited the upcoming "premium-priced" iPhone 8 and "high teens" annual growth from Apple's services business as key drivers for the smartphone maker's future financial results. At the bottom of its Switch page, the company is presenting all iPhone models now available to buy: iPhone 7 Plus, iPhone 7, iPhone 6s Plus, iPhone 6s, and iPhone SE.

Apple's stock has soared 32% year to date, while the SPDR Technology Select Sector exchange-traded fund XLK, +0.69% has climbed 15% and the S&P 500 index SPX, +0.41% has gained 6.6%.

Apple could launch 3 iPhones this year, with the names: iPhone 7s, iPhone 7s Plus and a special edition iPhone 8.

If we compare a hypothetical iPhone 8 with 64 gigabytes of storage to a hypothetical iPhone 7s Plus with 32 gigabytes of storage, I wouldn't be surprised if the bill-of-materials cost delta between the 64-gigabyte iPhone 8 and the 32-gigabyte iPhone 7s is quite close to the rumored pricing delta. Credit Suisse Group AG reissued an outperform rating and set a $171.00 target price (up previously from $163.00) on shares of Apple in a research note on Wednesday, May 3rd.

From the images, the alleged Apple iPhone 8 case is kept next to iPhone 7 and iPhone 7 Plus cases, and apparently, the iPhone 8 has gained noticeable bump.

Other reports by Click Lancashire

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