This is why iPhone 8 will cost upwards of $1200

Brand News #6

Apple is all about being aspirational. A $650 iPhone 7 or $770 iPhone 7 Plus is more or less an easy purchase for a majority of Apple fans despite being priced at a premium. But what about an iPhone that will start at $1200?

Ladies and Gentlemen, let me introduce you to the iPhone 8 and the reason behind its hefty pricing.

By now, you all must be well aware that iPhone 8 will come extra-loaded with goodies like bezel-less OLED display, 3GB of RAM, 3D camera, touch ID within the screen (possibly), longer lasting

L-shaped battery, wireless charging etc as shared by Apple leaks specialists like Venya Geskin, EverythingApplePro and BroKing. 

But what's making iPhone that expensive? Well, there are two things actually and it has got everything to do with supply-chain constraints,

1. Apple is finding it difficult to source the OLED screen and until recently they were in a real heap of problems. But all that seems to be sorted out with Apple signing an agreement with its greatest "Frenemy" Samsung who will supply almost 100 million 5.5-inch OLED panels annually for a value estimated to be $2.59 billion. 

2. Apple's touch ID is supposed to be another component/ technology that is driving the costs up. Apple is desperately trying to differentiate itself from other players with this piece of innovation but its actually delaying the release as well as making the iPhone 8 super pricey.  

But here is my logic as to why the iPhone 8 will sell in good numbers despite being pricey. When you look at iOS vs. Android usage, it tends to be focused in cities, metros, cosmos and areas with wealthy postal codes. Hence all the folks from the expensive and wealthy zip codes could potentially be the iPhone 8 customers (I am not saying that others wont go for the 8). So, even though iPhone is turning into a subscription product, it will do well for the company as less numbers with more margins is better especially when faced with a supply constraint. 

There is good news for Apple fans who are not looking to buy the iPhone 8 as well. This comes in the form of iPhone 7S and 7S Plus which will follow Apple's regular pricing mechanism.

There is also news floating around that, Apple is trying to introduce the pricing model that it follows with Mac and iPad in to the iPhone lineup too. Which makes sense actually and thus the iPhone 8 could be called the iPhone Pro which is priced at premium and has every feature imaginable. It is suspected that 64 GB iPhone 8 will be priced at $1200 and the 128 GB version will be priced  at $1400.

Will I go for the iPhone 8? Well, its the iPhone's 10th anniversary and Apple is likely to go all out on this particular model despite all the supply constraints and other limiting factors. So the answer is yes, I would love to get one for myself.