Why Apple, Inc. Jacked Up iPhone 8 and 8 Plus Prices


"The new iPhone 8 and 8 Plus, and later the iPhone X, are important devices for Apple and anticipation is running high", said Gerritt Schneemann, IHS's senior analyst for mobile handsets.

IHS attributes the rise in the cost of the iPhone 8 and 8 Plus to several features, including the new A11 Bionic chip, the neural engine (utilized for artificial intelligence) and especially the camera components. That technology - used among other things to create a detailed map of people's face so the phone can recognise its owner - uses far more sensors than in similar phones and is as a result much more sophisticated to make.

Ahead of the iPhone X launch, numerous rumours suggested there would be significant supply shortages which could see Apple launch with only 3-4 million units ready for consumers, with that particular figure coming from Kuo himself.

A base model iPhone 8 with a 4.7-inch screen and 64 gigabytes of storage includes material costs of $247.51, up from $237.94 for the 32 gigabyte base model iPhone 7 from a year ago, an analysis by IHS found. The company's starting price for the Apple iPhone 8 Plus is $799, $30 higher than the larger version of the iPhone 7.

IHS Markit is in the process of performing an analysis of the iPhone 8, which will explain how the price differential on the iPhone 7 and 7 Plus was $120 past year, while the iPhone 8 price differential returned to $100. This, in turn, allows Apple to control their inventory a bit better than they did with previous new model releases. Costs for software and research and development aren't factored in these estimates. So recently, Apple CEO TIM Cook was asked how accurate these were and her replied that he never saw "one that is anywhere close to being accurate". However, the iPhone X has the potential of lasting longest in normal use.

It's worth noting that both of these times are better than last year's iPhone 7 and 7 Plus, despite the new iPhones packing smaller batteries.

Apart from that, the certification site also showed us what might be the actual sizes of the storage spaces expected to launch with the new iPhones. Here the phones will go on sale from September 29.

The iPhone X loses the Phone's iconic home button, which revolutionized smartphones when it launched.