In this note, we take a look at the potential impact of the device on Apple’s iPhone shipments (market share), average selling prices and gross margins. We have a $164 price estimate for Apple, which is slightly ahead of the current market price. Pricing: We believe Apple will significant pricing power for the iPhone 8 (related: Apple May Have Unprecedented Pricing Power For The iPhone 8). For instance, IDC estimates that roughly half of iPhone customers now choose iPhone 7 Plus models, compared to under a third of customers who chose the Plus model during the iPhone 6 cycle. While the iPhone 8’s significantly higher price tag could help Apple mitigate some of these pressures, component costs are also likely to be higher.

Source: Forbes August 30, 2017 17:48 UTC