For most, Apple’s products, and by products I mean iPhones, have always been expensive but they have never been this pricey. Why is this happening exactly now is uncovered by famed Apple analyst Ming-Chi Kuo who says that according to reports from Goldman Sachs, Nikkei, Fast Company and KGI Securities’, Apple company will start pricing their iPhone 8 from $1.000 and more. Reports suggest that one of the reasons is the fact that it is very expensive to build.
Thanks to the Economic Daily News (via DigiTimes) we found out that the longtime Apple component supplier TPK Holdings will increase 2-2.5x the price for the integration of the 3D Touch into the 10th anniversary iPhone’s display. In terms of pure cash, it translates into $18-22 increase vs. $7-9 in previous generations. Some of us have been wondering why the decision to move to OLED tech, and the answer we got, thanks to Economic Daily Times, explains it simply “The solution directly bonds 3D Touch sensors on LTPS TFT-LCD display panels of the iPhone, but 3D Touch solution for OLED panels entails bonding of a glass cover on the front and back side of an OLED panel each to reinforce the fragile OLED panel.”
According to Goldman Sachs that OLED display will by itself add $35 to the overall manufacturing cost, but that is not all. Apparently, the new “3D sensing” technology (expected to make its way into the camera) will add to the overall price as well, and it will be $20, plus there is the upgraded memory which will be $16-29 more expensive than for the last year device. When you combine these with the new 3D Touch module, it roughly comes at $100 which according to Ming-Chi Kuo might just be the beginning.
How come, you might ask?! Well, we are forgetting the long announced wireless charging and quick charging plus that Touch ID integrated into the display, we can definitely expect it to be even pricier. Just as a comparison, since the 256 GB iPhone 7 Plus is already selling for $969, with the fact that Apple must maintain its industry leading profit margins the starting price tag of $1,000 now doesn’t seem that much does it?!
Despite all of this we believe that Cupertino-based tech giant will still be OK. Why? Well, you know that they are not shy when it comes to raising the prices of their products and that was clearly seen when they increased MacBook Pro prices dramatically, but they never lost one sale or any brand loyalty, and they’ve continued to be very strong. Plus there is the whole deal with iPhones having their cost spread out via long-term carrier contracts. This is why it’s clear that Apple is just going to sit back and reap the rewards easily. If they get everything right of course.
