iPhone 8 Leak Confirms Apples Expensive Secret

The iPhone 8’s biggest problem is clear. Despite a radical new design, massive display, wireless charging, vertically aligned dual camera and entirely new notification system, the price is going to be very high. But is there now some good news here as well?

Business Insider states that Apple AAPL +0.74%’s plans to start iPhone 8 pricing from $1,000 remain unchanged meaning top tier storage could cost $1,100 – $1,200 (and this is why). But according to a new report it has obtained from analysts’ Nomura-Instinet, carriers may be about to ride to the rescue.

Citing “record-low upgrade rates” among carriers, Nomura-Instinet analyst Jeffrey Kvaal says they have reason to believe carriers are now desperate to come out on top in what is expected to be a “supercycle” upgrade when the iPhone 8 launches. As such the company has discovered evidence of “assertive promotions” where carriers will stomach some of the cost to bring down the cost of the handset for eager consumers.

This is expected to go a step beyond the usual subsidising of a handset’s cost over the length of its contract with genuine savings. Given an iPhone contract can lock a new customer into a contract of two years or more, this may well be a risk the carrier deems worth taking in a free-for-all.

And yet there’s a reason I said “maybe” at the start of this article: because Apple is keeping an expensive secret up its sleeve…

In short, famed Apple analyst Ming Chi-Kuo believes a lot of the iPhone 8’s major new features (like fast charging and wireless charging) are expected to be treated like optional extras with only a standard Lighting-to-USB Type A wall charger in the box. Combine the cost of fast and wireless chargers and Lightning-to-USB Type-C cables after sale and there’s likely to be another $100+ of customer outlay.

As such, no matter their well meaning intent, it is unlikely carriers are going to be able to shield users fully from the dramatic price increase of Apple’s 10th anniversary iPhone.

 

   
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