The next iPhone could be the most expensive smartphone Apple’s ever made, but according to some analysts, carriers might step in so customers’ wallets aren’t hit quite so hard.
Rumors have indicated that the price tag on the iPhone 8 may run well past $1,000 thanks to a host of new features and hardware improvements. An iPhone that’s more expensive than a MacBook may not appeal to a lot of consumers. Carrier discounts may help trigger more upgrades though.
In their latest research note to investors, analysts at Nomura-Instinet claim promotions from carriers will help customers get a great deal on the new device. To get the deals, you’ll probably have to commit to your carrier long-term.
iPhone upgrade super-cycle
“We believe US carriers are preparing assertive promotions for the launch,” wrote analyst Jeffrey Kvaal. “US telcos indicate record-low upgrade rates have not eased further ahead of the iPhone 8.”
Those discounts may come in the form of price reductions on the hardware, or long-term payment plans for the device.
Investors are hoping that the new iPhone will trigger a super-cycle of upgrades. The theory is that upgrade rates have been low the past two years as Apple fans wait for major new features. This year’s new device could pack plenty of crazy new hardware to lure in buyers.