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$1,000 for iPhone 8? Here’s why you shouldn’t freak out – CNET

Rumors that the new high-end 2017 iPhone would cost upwards of $1,000 have persisted for so long that I can’t even remember where or when they first started. But with the recent New York Times report from Brian X. Chen that the Apple lineup will include “a premium model priced at around $999,” that price tag has been elevated from “rumor” to “as reported by the paper of record.”

Chen cites his sources as “people briefed on the product, who asked to remain anonymous because they were not authorized to speak publicly.” And while an Apple spokesperson declined to comment to CNET on the Times story, everything about it makes sense. In fact, the only real question is whether $999 is the starting price, or maybe the middle model. (I hope Apple will at least have mercy and start the storage capacity on the baseline model at 64GB instead of just 32GB.)

So: The $1,000 iPhone price point, give or take a dollar, appears to finally be here. (That translates to about £775 and AU$1,265, but because international coss aren’t based on direct currency conversions, pricing in the UK and Australia will likely be higher.) However you slice it, it’s a lot of money — and it puts your phone on the same price plateau as, say, a nice laptop or a big-screen TV. Is it a financial bridge too far for overextended consumers? In a “peak smartphone” world awash with good-enough $250 handsets, will consumers throw up their arms and harrumph at Apple’s hubris, likening the $1,000 iPhone to the now-extinct $10,000 Apple Watch Edition?

I don’t think so. I think the iPhone 8 — or whatever it’s called — priced at $1,000 will sell briskly, and probably be hard to find for months. Far from hurting Apple and the iPhone brand, I think a new “luxury” iPhone will only enhance it. Here’s why.

$1,000 is a lot of money — if you pay it all at once. “Wireless carriers help obscure the full cost of the device by offering a monthly financing plan,” according to Wayne Lam, principal analyst at IHS Markit.