As consumers prepare themselves for the release of the iPhone 8, an esteemed investment bank has made a major prediction about the retail price of the smartphone. Goldman Sachs believes that the iPhone 8 will retell at above a $1,000 price point. This may seem like a hugely important psychological milestone, yet Goldman believes that this will be far from detrimental for the future of apple.
Indeed, Goldman Sachs raised its Apple price target on the information, pushing it up to $170, revising its previous estimate of $164. This would represent a 10 per cent potential upside from the closing price of the stock on Thursday. “We think the higher demand for the larger (5.8″) form factor will be supported by the fact that the iPhone 8 will have compelling new features not available in the smaller form factors,” Goldman analyst Simona Jankowski wrote in support of this notion.
While many may assume that this high retail price could impact negatively on the reach of the device, Goldman Sachs suggests otherwise. There is good evidence to suggest that the iPhone range is pretty price inelastic, with previous research having indicated that Apple consumers have more brand loyalty towards their products than any comparable manufacturer.
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Thus, Goldman believes that the higher price will simply result in more revenue for Apple, and if it is able to manufacture the iPhone 8 at an affordable level this will mean that the profit margin of the company is elevated significantly. On the back of this prediction, Goldman Sachs has raised both its 2018 and 2019 earnings expectations for Apple, with the investment bank expecting an outstanding performance from the iPhones released in both of these calendar years.
iPhone 8 – Camera models finalized
With Apple seemingly ready to release the most expensive iPhone in history, the company has been readying its final procedures for the smartphone, and this week the East Asian press reported on its latest developments. LG Innotek will certainly supply the facial recognition camera modules for the upcoming iPhone 8, according to the Korean Economic Daily.
A report in the publication suggested that the recently announced facility of the company, worth $238.5 million, will be dedicated to fulfilling Apple’s orders for the iPhone 8. Apple has been strongly linked with augmented reality technology for this iPhone release, with the company’s CEO Tim Cook having enthusiastically backed the innovation in public statements.
Apple and LG Innotek have already collaborated in order to produce the world’s first 3D facial recognition camera system, with the latter being the market leader in the smartphone camera module marketplace. The unit produced by this joint effort can be utilized for a wide variety of applications, with gaming and biometric authentication high on the list.
LG Innotek already provides a dual-lens camera module for LG, and it is thought that the new technology to be included will exceed even the technology included in the LG G range. It is thought that this is a major motivation for building a new plan for production, with Apple having very specific demands for the modules included in the iPhone 8.
While Apple’s great rival Samsung has already included facial recognition in the Galaxy Edge series, and could transfer this to the Galaxy Note 8, the 2D technology utilized is not as accurate as the 3D system that Apple is seemingly planning. This would give Apple a major edge in this department (no pun intended!), and it would undoubtedly be an aspect of the smartphones that would be promoted in marketing.
As a result of the tie-in with Apple, the earnings of LG Innotek are expected to quadruple in the coming financial year, obviously a major boost for the company.
Meanwhile, Apple has also agreed another component collaboration, with the Taiwan Semiconductor Manufacturing Company (TSMC) having begun producing 10nm process chipsets for the next generation iPhone 8. TSMC it becoming an increasingly important player in this market, with deals having also been agreed with MediaTek and Huawei.
When Apple unveils the A11 chipset, intended for utilization in the iPhone 8, it will see the first implementation of the 10nm FinFET process. This supposedly delivers superior performance and efficiency, something that Apple has been particularly seeking out considering the negative reviews that the battery lifecycle of the iPhone range tends to receive.
It seems that supply issues will be a massive hurdle for Apple to overcome with the 2017 iPhone, as there have already been reports that the OLED display that the manufacturer intends to include in this series could pose problems. There are serious supply shortages of this technology according to some reports, with both Apple and Samsung now intending to include this technology in their respective smartphones on a massive scale.
September launch date
Meanwhile, according to Twitter user @OnLeaks, one of the most renowned and successful leakers on the planets, the iPhone 8 remains on track for a September launch. A recent tweet from the social media influencer suggests that Apple’s manufacturing partner Foxconn has already begun to put staff in place in preparation for the manufacturing of the next generation flagship iPhone.
@OnLeaks then followed this up by stating that mass production of the iPhone 8 will begin in August, with a September launch of the device still likely. This contradicts previous reports which suggested that Apple is struggling to deliver the iPhone 8 in time for September, although there is still some confusion and debate over precisely what products Apple will release or how they will be branded.
Indeed, it is far from settled that iPhone 8 will indeed be the name for the next-generation Apple phone, with iPhone X also being a strongly suggested alternative. It is even possible that Apple could release two upgraded iPhone 7S units instead, saving the iPhone for a more convenient release date.
Certainly it seems that the intention of Apple in 2017 is to diversify all of its product ranges, offering consumers a greater choice of potential devices, as exemplified by the Apple Watch. This should result in Apple releasing three handsets in the calendar year, with a revolutionary iPhone 8 being accompanied by two more entry-level devices. And it seems that the consumer electronics giant is indeed on track for a September release for all three mobiles.