Both the iPhone 8 and Galaxy S8 will launch in 2017, and there is no doubt that these two prominent smartphones will attract their fair share of consumers. Apple and Samsung have established their flagships as the market-leaders, and this is set to continue for several years to come.
But with competition between the two mega-corporations so fierce, pricing will play a major role in the strategy of the two companies in 2017. Here ValueWalk assesses the likely price tag of the iPhone 8 and Galaxy S8.
While Apple has faced market challenges over the last year or so, this same situation has arguably impacted more on Samsung than its Californian rival. This has seen Apple inch ahead of the Korean company once more in terms of total units sold, and many believe that this trend will exacerbate when the iPhone 8 is released.
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Nonetheless, all of the evidence from early rumors related to the iPhone 8 suggests that the price of the device will be increased significantly. Numerous sources have suggested that Apple will include an OLED panel in the iPhone 8 generation for the first time, which is likely to increase production costs.
Reports have suggested that the OLED screen that Apple intends to arm the iPhone 8 with will cost more than the display included in the iPhone 7. And Apple will thus probably pass this extra cost on to the consumer.
However, it isn’t only the display in the iPhone that will cost more to manufacture. Other components may also lead to a price hike, with suppliers such as TBK reporting that its margins will increase from 11-12 per cent to 22 per cent. When the price of materials elevates, it is inevitable that the price of the iPhone 8 will go up with them, particularly as Apple has tended to operate a business model with high profit margins.
Apple has also been linked with several new revolutionary features for the iPhone 8, while the handset will also be based around a significant redesign of the smartphone concept. An all-glass design is expected, while the iPhone 8 may also feature a curved display for the first time in an Apple mobile.
All of these new features add up, and this has led analysts to speculate that the iPhone 8 may be the first smartphone from Apple to break through the $1,000 barrier. This certainly seems plausible considering the spec increases, additional features and new design parameters, coupled with the inclusion of OLED for the first time.
Apple may also feel emboldened to increase the price of the iPhone based on analyst predictions for the sales of the device. It is already suggested that Apple will shift 230 million units units in the forthcoming calendar year, with some analysts predicting a 20 per cent increase in sales for the iPhone in comparison to the previous generation. With such consumer demand for what is said to be a particularly outstanding handset, we may indeed see the iPhone 8 attract at a hefty $1000 plus price tag. And Apple can always rely on unparalleled customer loyalty.
Meanwhile, Samsung that will be first to market as usual with the Galaxy S8, undoubtedly a critical smartphone for the corporation. The Galaxy S8 will be the first mobile release from the Korean company since the disastrous Galaxy Note 7 was recalled due to its tendency to explode. Rumors on the next generation smartphone have been circulating rapidly in recent weeks, but there has actually been a surprising dearth of information regarding the possible cost of the handset.
But UK retailer MobileFun has recently revealed the potential price tags for the Galaxy S8, with this information having been picked up on by the tech media. Thus, MobileFun suggests that the Galaxy S8 will retail at $799, with the larger Galaxy S8+ costing one hundred more, at a price tag of £899.
Samsung will distinguish the two handsets by producing a larger Galaxy S8+ featuring a 6.2-inch display. And tech tipster Roland Quandt has also weighed in on the pricing issue, tweeting his belief that the Galaxy S8 will retail for €799, and the S8+ will retail for €899 on the European mainland (Britain, of course, remains outside of the European monetary union at present).
Effectively these are different predictions, as the sterling value of consumer electronics products is usually slightly lower than the Euro equivalents. For example, the PS4 Pro currently retails at £349 on the British version of Amazon, while it is priced at around €385 on the French website. Usually there is a 10 per cent markup on European prices to reflect the exchange rate between the pound and the euro.
But it seems based on these early releases that we can expect the Galaxy S8 to retail at somewhere between £750 and £799 in Britain, with the larger Galaxy S8 plus costing £100 more than this. But what does this mean for the United States?
Americans are fortunate that the dollar has been trading well recently, while the pricing for consumer electronics items is usually favorable in the States anyway. Currently, £800 equates to around $990, meaning that the retail price of the Galaxy S8 is extremely likely to come in at under $1,000. Possibly a reasonable estimate for the smaller of the two Galaxy S8 units would be a $950 price tag. This would mean that the larger Galaxy S8 plus unit is likely to retail at just over $1,000 in the US.
There is pressure on Samsung to deliver a more affordable price point considering the cloud under which the company is operating. The exploding Galaxy Note 7 has obviously reflected poorly on Samsung, and the reliability of Samsung products has been emphasized in its early marketing for the next generation smartphone. Samsung is also being challenged by more affordable variants to its products. This means that we can expect the Galaxy S8 to retail at a cheaper price point than the iPhone 8.