Why Apple Raised The Entry Price for iPhone 8

Apple usually sticks to a single price level for its new iPhones, but not this time. iPhone 8 starting price is higher than previous models.

The entry-level iPhone 8 with 64GB costs $699, that is $50 more than the cheapest models of iPhone 7 and iPhone 6S. The same applies to iPhone 8 Plus: it costs $30 more than iPhone 7 Plus.

According to the lists of materials, iPhone 8 Plus parts cost $17.78 more than iPhone 7 Plus and iPhone 8 parts cost $9.57 more than the iPhone 7.

Screens, mechanical enclosures including the glass back are the most expensive iPhone 8 components. The added wireless charging parts also increased power-management costs by $2. The larger storage capacity costs $6 more per unit, while the A11 Bionic chip is $5 more expensive than its predecessor.

The IHS analyst Wayne Lam says that the price is higher because of a better camera, processor, and more memory. He believes that this is a way to measure the level of improvement of new iPhone.

[via BGR]