Simona Jankowski, an analyst with the multinational finance company Goldman Sachs, predicted that Appe’s OLED-based iPhone 8 could cost $999 for a 128-gigabyte model, or $1,099 for the top-of-the-line model with 256 gigabytes of storage.

“We think the higher demand for the larger 5.8-inch form factor will be supported by the fact that iPhone 8 will have compelling new features not available in the smaller form factors,” like a 5.8-inch OLED display and 3D-sensing augmented reality technology, reads the note.

She told her clients in a note seen by Business Insider that the entry-level models of iPhone 7s and iPhone 7s Plus may be priced at $649 and $769, respectively, like the current iPhone 7 models. The flagship 256GB iPhone 7 Plus model currently retails for $969.

“We expect iPhone 8 to have 128 GB and 256 GB models priced at $999 and $1,099, respectively,” Jankowski and her team wrote in the note to clients. She doesn’t think Apple will offer iPhone 8 with just 32 gigabytes of storage.

Here’s an excerpt from the research note:

Relative to the 128GB iPhone 7 Plus, we estimate the new features and higher commodity prices to increase the bill of materials by over $70, which we expect Apple to offset via a $130 price increase, resulting in a starting price of $999 for the 128GB capacity and $1,099 for the 256GB capacity.

The first $1,000 iPhone can drive “meaningful upside,” reads the note.

Goldman Sachs expects these features and costs:

  • 5.8-inch OLED screen (adds $35)
  • No bezel & all screen
  • 3D sensing capabilities (adds $20)
  • Better & faster flash storage and DRAM memory (adds $16 to $29)
  • Capacity starting at 128 gigabytes
  • Apple-desgined A11 processor
  • No Home button
  • Biometric authentication

She believes Apple has now finalized iPhone 8’s design.

“Apple usually explores multiple designs in parallel,” explains her note. “However, with only four months left until launch, we believe Apple has now locked down the design.”

She estimates fiscal 2018 iPhone average selling prices will rise sixteen percent annually to $763 versus the $675 Wall Street consensus.

Due to the expected higher-priced iPhone 8 models, Goldman Sachs has raised its estimates further above consensus, setting its Apple price target to $170 from $164, representing ten percent upside from Thursday’s close, and raising its Apple fiscal 2018 earnings-per-share forecast to $11.50 from $11.00 versus the Wall Street average of $10.40.

Fast Company was first to report back in February that the flagship iPhone 8 model could cost north of $1,000 due to advanced technologies and premium parts.

  • Jay

    So everyone believes  will release two new models just because its the anniversary of the iPhone.. okie dokie..

    • Melo

      10th anniversary, a great year to rip off loyal costumers.

      • Mike M. Powell

        looks like it. True or not, I hope carriers offer some good upgrades. Or I’m keeping my 7+ for another year, if this outrageous “RUMOR” becomes true….

  • Valinor

    Apple be like: lets create a flagship phone, add 300 dollars to the price. Call it the anniversary iphone.

    Meanwhile the iphone that should actually be the flagship and which should be getting the latest and greatest specs…… lets just update that one with minor updates and price it like we always do.

    • Bill

      It’s simple:

      You, Valinor, want a raise every year let’s say. We’ve all basically come to expect one at least every so often, that’s a given.

      Apple wants a raise as well. How do they do that? They bring in more money. Pretty simple.

      Of course, the problem is that the system can’t continue to climb to infinity. It’ll all come crashing down eventually. It always has in the past, and it will continue to in the future until we figure out a different way. This isn’t a knock on capitalism, and it sure isn’t an endorsement of, say, socialism. Just stating how it is.

  • Rowan09

    If the 8 is at those prices it should only be the 256 at $1000 and no 256GB for the 7S models. If they are going to keep these prices then they should include the AirPods with the 8 at the least.

  • burge

    What ever price it is I’ll have it just because is the anniversary device, and anyone who says it’s over priced your not forced to purchase anything it’s your decision on what you spend your cash on.

  • ‫ליאור גולן‬‎

    If it will include:
    1. AirPods
    2. Integrated fingerprint sensor in the screen
    3. Eye scanner
    4. VR technology
    5. Wireless charging
    6. All screen front

    That it defentally worth 1000$ for 256GB, not more

  • Siri Tim Cook Holness

    U spelled apple wrong u put appe