A recent report suggested that the new iPhone 8 will ship in three different storage configurations, starting at $999 for a 64 GB option, and increasing at $100 increments through 256 GB and an unprecedented 512 GB model.
A new note from UBS analysts Steven Milunovich and Benjamim Wilson disagrees, however. Instead, they think it’s “unlikely” that Apple will ship a $1,199 version, and instead that Apple will offer only two storage options — in the form of a 64 GB and 256 GB version.
“Apple tends not to price far from the high end competition,” the analysts write. “With the Galaxy Plus at $840 and the [Galaxy] Note at $950, we think a $900 price tag for the base OLED model makes sense.”
They go on to argue that the premise that Apple will charge $1,199 for a device is not consistent with the way that Apple thinks about its pricing.
“We don’t think Apple thinks ‘How much can we charge?’ Rather it chooses a price band worth playing in and then develops a product to fill that space,” the note says. “For example, Apple decided the $900-1,000 notebook market was worth entering. It then asked ‘What does our $900 MacBook look like?’ Enter the MacBook Air. If Apple cannot deliver an experience worthy of the brand at a given price band and profitability level, it does not proceed.”
While it would be unusual for Apple to release an iPhone with only two storage configurations, it would not be unprecedented. 2007’s iPhone, 2008’s iPhone 3G, and last year’s iPhone SE each boasted two storage options each — although in the case of the first-gen iPhone and iPhone SE, additional storage options were later made available.
Apple’s iPhone 8 will debut alongside a minor upgrade iPhone 7s and 7s Plus at next week’s September 12 media event. For more about what you can expect from Apple’s most significant update since 2014’s iPhone 6, check out our guide here.
How much of a deal breaker would the presence (or lack of) a 512 GB iPhone 8 be? Leave your comments below.
Via: Business Insider
