There have been some intriguing media reports on the new Apple Inc. (NASDAQ:AAPL) iPhone 8 price in recent weeks, not to mention conflicting information. It had been repeatedly suggested, until recently, that the iPhone 8 will retail at a price in excess of $1,000. Yet, other reports have contradicted this, some suggesting the smartphone could actually be even more expensive, while others claim it will be cheaper.
Simply put, the iPhone 8 price tag will be — for the true Apple fanboys, anyway — irrelevant. Apple loyalists are known for maintaining a level of brand loyalty that often borders on cult-like, meaning they will purchase the new device regardless of its exorbitant price tag.
Carrier discounts
Firstly, it was widely reported that the new iPhone 8 price would be reduced by the major carriers. Such big players in the market as Verizon Communications Inc. (NYSE:VZ) and T-Mobile US Inc (NASDAQ:TMUS) would enable iPhone consumers to pick up the next-generation smartphone for significantly less than its recommended retail price. Apple fanboys would be able to tie themselves in to longer deals for the smartphone, and thus purchase it at a more affordable price.
This story certainly made sense, yet Apple watcher and developer John Gruber suggested that the phone could even retail at $1,200. Gruber believes that sourcing the OLED panels for the iPhone 8 will ensure that this is a significantly more expensive smartphone than previous generations.
“It sounds to me like the OLED iPhone is a phone which Apple can’t make 40 million of per quarter, at least not today. And if that’s true, that means it should be more expensive. Not should in any moral sense, but simply because that’s how the principle of supply and demand works. When supply is constrained and demand is high, prices go higher. The higher prices alleviate demand,” Gruber told CNBC.
$1,200 price point mooted
This interview was then backed up by money manager and popular blogger Josh Brown, who stated that the demographic for Apple products would ensure that this $1,200 price tag is feasible. Google will actually pay this price upfront, citing potential deals and long-term payment plans as a way to reduce the overall cost of purchasing the iPhone, or at least over a longer timeframe.
What does seem to be certain is that the iPhone 8 will be treated as a premium version of the Apple smartphone, and launched alongside two iPhone 7S upgrades. The new iPhone 8 price is thus likely to be significantly higher than the other two devices released by Apple in 2017. With both 64GB and 256GB versions of the iPhone 8 expected, it is perfectly plausible that the smaller storage quantity model will sell at $1,100, with the premium version retailing at $1,200.
Brand loyalty and penetration
But regardless of the new iPhone 8 price, we can be entirely confident that the new device will sell well to Apple fanboys. This has been the case with every previous iPhone release, and is set to continue when the iPhone 8 hits the stores. Apple has achieved a level of brand loyalty and market penetration that no other smartphone manufacturer can seriously rival.
This has been acknowledged by Apple’s unprecedented world number one ranking in the authoritative Interbrand survey. Elsewhere, research has indicated that Apple consumers are significantly more loyal than those who buy other products. Does this mean that the iPhone 8 will be another unqualified success? Almost certainly, yes.
Tenth anniversary bonanza
In addition to the brand loyalty that Apple has built up, the iPhone 8 also promises to be one of the most exciting devices in the history of the company. Apple is ready to produce an outstanding smartphone to acknowledge the landmark tenth anniversary of the iconic iPhone, and this should result in a raft of new features.
Possibly the most exciting of these is a new wireless charging function that will enable consumers to charge their phones at a hitherto unimaginable distance of 15 feet. Apple is also expected to implement am improved dual-camera system in the iPhone 8 generation, while this should also embrace 3D and augmented reality functionality.
The new, larger, wraparound OLED display will be another major selling point, and should help create buzz for what will undoubtedly be one of the consumer electronics highlights of the year.
Fashion accessory
The iPhone series has also become, quite simply, cool. This means that the new iPhone 8 price can be rather extortionate in comparison to other smartphones, yet still have little impact on Apple as a corporation.
While many may be scathing of the impact of branding, the fact remains that this concept has a huge influence on the success of consumer products. Just ask uncool car manufacturers such as Skoda.
Apple has achieved a fantastic brand identity and image, particularly with younger consumers, and this will stand the iPhone 8 in good stead once again when it is released.
Most recognizable and the biggest
And undoubtedly the most important factor in the success of any item of consumer electronics is how recognizable the device becomes. It is even more powerful when the brand name of a particular product becomes shorthand for the device itself. And while this latter concept hasn’t quite been achieved by the iPhone, it is absolutely instantly recognizable, and thus has a street and market cachet unmatched by any other smartphone.
While Samsung has achieved a huge amount in the mobile niche, and undoubtedly become a major rival to Apple, the Samsung Electronic (OTCMKTS:SSNLF) Galaxy range has yet to achieve the instantly recognizable nature of the iPhone, both physically and in terms of its name. This will again help ensure that the iPhone 8 is another massive success.
Still expensive
Regardless of this, the fact remains that the iPhone 8 will still be rather expensive. Even breaking through the psychologically significant $1,000 barrier seemed quite important, yet it now seems that the smartphone will retail at a price point in excess of this. This will certainly challenge the loyalty of Apple consumers all over the globe, but all of the evidence suggests that the sales of the Apple device will remain sturdy and robust regardless of the new iPhone 8 price.
