Why will the iPhone 8 be so expensive?

According to Goldman Sachs, Nikkei, Fast Company and KGI Securities analyst Ming-chi Kuo, iPhone 8 has a starting price of $ 1,000. Why is the product so expensive?

To clarify this, the Economic Daily News has provided some details that boost the value of the iPhone 8. Research shows that Apple’s component supplier TPK Holdings has quote a 2-2.5-fold price for integrating the 3D Touch sensor into its iPhone 8 display, and Apple has accepted it. This means that the production value of iPhone 8’s display has increased from $ 7-9 to $ 18-22.

Explaining the reasons for the increase in display production, Economic Daily News said, “With the LTPS TFT LCD, the solution is to mount the 3D Touch sensor directly onto the substrate. Meanwhile, with the OLED display, this would require mounting a glass case on the front and back of the OLED panel to enhance the power of the slim OLED. ”

Moreover, this is only one part of a series of other order-raising activities. Goldman Sachs said the OLED would raise the overall cost of production by $ 35, 3D camera sensing for the front camera would add $ 20, and memory upgrades would cost more $ 16-29. Combined with the new 3D Touch module, the total cost increases by about $ 100.

Furthermore, supporting wireless charging along with integrated Touch ID on screen also boosts the value of the iPhone 8. So with the current $ 969 iPhone 7 Plus 256 GB, it doesn’t seem so unexpected when the upcoming iPhone 8 has $ 1,000 price tag.

According to Goldman Sachs, Apple has designed the iPhone 8 with the final decision to integrate the Touch ID into the screen instead of facing the back as some rumors of its “Plan B”. This means that Apple has committed to accept the cost of production that its partners offer, resulting in an increase in the price effect of the product.

Of course, for Apple, price increases are not something the company has not done before. Recently, Apple has raised prices significantly for the new MacBook Pro. Therefore, the iPhone over $ 1,000 is almost certainly happening.

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