What can make the upcoming Apple iPhones more expensive
Apple is going to announce the new iPhones in a few hours time. We take a look at what they might cost based on the details we have so far
Apple iPhones have always been a premium affair with a starting price of more than $600. If the rumour mill is to be believed, the new iPhones are going to get more expensive this year, especially the anniversary edition variant, as it is expected to pack in some advanced and expensive components.
Here are some of the elements which can make the new iPhones expensive.
Apple’s decision to switch to the OLED panels in the iPhones this year will affect the prices. According to Ming-Chi Kuo of KGI Securities, the OLED displays used in the new iPhones will cost up to $130 per unit. This is up to two times more than the LED displays used in last year’s iPhones 7 and 7 Plus, which cost up to $55. However, many believe the OLED display will be limited to iPhone 8X. The other two models are likely to use the same screen as last year.
If Apple decides to add the fingerprint sensor in the OLED screen, the prices may go up by another $30.
According to IHS Markit’s (UK-based research and analytics company), the break-up of direct material cost for iPhone 7, flash storage worth 32GB costs about $16. And if the leaks on Chinese social media Weibo are to be believed, the entry-level variant of iPhone 8 will have 64GB storage, while the top-end model can provide up to 512GB. This means the cost of the new iPhones, even the entry-level ones, are likely to go up.
The new iPhones are expected to have an infrared module for 3D sensing. Goldman Sachs’s break-up of what new components may cost suggests that 3D sensors in the camera will add about $20 to the total cost.
According to them, the 128GB variant of iPhone 8X could cost $999 and the higher storage variants will cross the $1,100 mark. If Apple decides to stick with 32GB storage, the iPhone 8 and 8 Plus are likely to start at $649 and $769, respectively. This is similar to the entry-level price of the iPhone 7 and 7 Plus.
Apple doesn’t hesitate to charge a premium price it feels is more appropriate for a device. The new MacBook Pro 13 and 15, launched early this year, cost $200 more than their predecessors. The high-end variant of MacBook Pro 15 with Touch bar was priced at an unprecedented $4,299.