Apple knows no one really wants to pay $1,000 for a phone, but that’s how much it plans to charge for iPhone 8. To make it feel a little less expensive, the company will reportedly throw in some extras — including free music and storage.
Apple is expected to unveil three new smartphones next week. We’re likely to see incremental improvements to the iPhone 7 lineup, alongside an all-new model to celebrate the handset’s tenth anniversary. It’s the latter most fans will want to upgrade to.
But according to countless reports, its price tag will start at $1,000. That’s a steep rise for what was already one of the world’s most expensive phones — but it could come with some nice freebies that help ease the credit card sting.
According to Barclays analyst Mark Moskowitz and his team, Apple plans to include a free Apple Music subscription and 200GB of iCloud storage for the first year. The bundle would normally cost $156, effectively reducing the cost of an iPhone 8 to $844.
This would have a much smaller impact on Apple’s bottom line than if it was to just reduce the price of iPhone 8.
Barclays did a survey that found only about 40 million customers would buy an iPhone 8 at $1,000. But if Apple Music and iCloud storage was bundled with it at no extra cost, over 64.4 million people would be willing to cough up for it.
That equates to 7 percent more iPhone revenue, or an extra $9.8 billion. And when that one year of free Apple Music and iCloud storage is up, customers are more likely to fork out for it having relied on it for so long already.
Via: Business Insider