Apple may price the iPhone 8 at $1,000

Features such as an advanced 5.8-in. OLED display and advanced 3D camera will likely drive the price up

Apple's upcoming iPhone 8 certainly won't be the priciest device to ever come out of Cupertino, California, but it will certainly be the most expensive iPhone Apple has ever released.

That's hardly a surprise—Apple is planning to pack a ton of advanced technology into its flagship 2017 iPhone. In addition to an edgeless OLED display, it's widely believed that the device will incorporate improved water resistance, facial recognition technology, support for what may be next-gen augmented reality (AR), faster internals, wireless charging and more.

So, while the current entry-level iPhone 7 costs about $649, some analysts anticipate that the entry-level iPhone 8 will set users back a cool $1,000. That's a significant price increase to say the least, but many analysts say Apple will have no problem selling users on the idea of shelling out $1,000 for the company's state-of-the-art smartphone.

As to why the iPhone 8 will cost so much—it all boils down to basic economics. Simply put, the components Apple plans to use on the iPhone 8 cost a lot more than the parts currently used on the iPhone 7.

Shedding some more light on this, Business Insider a few days ago relayed an analyst note from Goldman Sachs that details where some of the price increases are going to come from. The advanced 5.8-in. OLED display, for example, alone will add $35 to the cost of production. Further, the advanced 3D cameras that will reportedly grace the device will add an extra $20. And that, of course, is just the tip of the iceberg because there will be added costs for faster memory, more storage, and a more involved production process for the display and other device components.

In the interest of completeness, not every investment firm says the iPhone 8 will be so expensive. UBS, for example, anticipates that Apple will price the iPhone 8 in the $850 to $900 range.

As CNBC reported a few weeks back:

UBS said the factory cost of the 64GB OLED iPhone will be $70 to $90 higher than the iPhone 7 Plus model with a sale price of between $850 and $900.

...

Many market watchers expect that the iPhone 8 anniversary edition could cost $1,000, but UBS said this is unlikely given that Apple rarely ventures above competitors' price in the high end.

So, while only Apple executives know how much the iPhone 8 will cost, I think it's a safe err on the $1,000 side of the debate. The iPhone 8 will be Apple's 10th anniversary phone, and as mentioned above, it will likely set a new bar of excellence and innovation in the smartphone space. That being the case, it's more than plausible to presume that Apple will price its nex-gen iPhone model at a rather high price.

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