Thursday, 30 March 2017 09:09

This Is Why You Will Pay $1000+ For The iPhone 8 AKA The "iPhone Pro"


The iPhone 8 – Apple’s Mac Daddy update for 2017 – has been detailed inside a new report from TrendForce

The iPhone 8 is coming in 2017 alongside the iPhone 7s and iPhone 7s Plus, and while that might sound odd it kind of makes sense, given the state of the mobile space (declining sales) and the demand for new iPhone designs, which is at an all time high.

How Apple’s 2017 iPhone campaign will work looks a little something like this, according to the latest information: two iPhone 7s models that will look and feel like the current generation iPhone models, just with updated internals, and the iPhone 8 – the new flagship model.


TrendForce recently waded in on the rumours, publishing a report about the iPhone 8’s apparent specs as well as how many units it expects Apple to sell in 2017.

Apple will sell A LOT of iPhones in 2017/18. This seems to be the general consensus amongst analysts and industry insiders. The reason for this spike in sales, of course, is the design refresh – the iPhone 8 will be the first truly new iPhone in almost three years.

Don’t expect these high prices to put off buyers, though. Kate Huberty – an analyst at Morgan Stanley – reckons demand for the iPhone 8 is currently being grossly under estimated.

Market watchers predict an upswing in sales of around 10% for 2018, off the back of the the iPhone 8’s release. However, Huberty believes this isn’t right; she believes it will be more like 20% – a far more significant number.

I think she is right, too. The release of the iPhone 8 is going to be like the iPhone 6 and iPhone 6 Plus on steroids.

“We do not think the super cycle is fully appreciated,” Huberty told CNBC PRO in an exclusive interview. “What we expect in September is a phone that has significant advancements in technology: OLED screens, 3-D sensors, wireless charging [and] likely some more advanced software in the area of artificial intelligence.”

Apple fans, loyal as they are, have been patiently waiting for this phone to happen. In true Apple-style, we’ve seen a steady flow of leaked information and details about the phone. All of them are glowingly positive and have helped create a huge buzz around this year’s release.

In this respect, it reminds me very much of the run-up to the iPhone 6 launch which was, of course, the last major design change Apple undertook.

TrendForce says Apple will produce 100 million next-generation iPhone units, a huge number even by Apple standards. Though this will be the tip of the iceberg for the fiscal year, as it expects Apple to shift around 230 million iPhones throughout the year – a 6% increase on 2016.

iPhone 8 Release Date & Launch: September Launch

Apple will apparently announce its new iPhone 8 during its customary September slot. Demand for the handset, however, is expected to be massive, meaning there will almost certainly be delays as Apple struggles to meet demand.

Word of the September launch date was noted by Mac Rumors, as was the alleged, ACTUAL name of the iPhone 8 which will apparently be called the iPhone Pro. Given Apple’s recent iPad launch event, this name makes a lot of sense.

It now has iPad and iPad Pro; MacBook and MacBook Pro; and, finally, once September comes around, iPhone and iPhone Pro.

“Suppliers generally had good things to say about the upcoming iPhone 8 launch (for our purposes iPhone 7s, iPhone 7s Plus, and iPhone Pro) as new features drive a more complicated manufacturing process and higher ASPs,” the note says, according to MacRumours.

The blog added: “We now believe that all three devices will feature wireless charging and will all be launched in the normal September timeframe, although the majority of iPhone Pro volumes may not be available until Q4.”

Bizarrely, Apple is said to be still testing designs for the iPhone 8; apparently it is not quite set on the overall look and feel of the handset. The core new attributes and features will almost certainly be fixed. Apple will likely just be finessing the outer aesthetics of the handset.

iPhone 8 – First With AMOLED

The iPhone 8 will be the first – and only iPhone in 2017 – to support an AMOLED display. That display will also be 5.8 inches, the biggest iPhone display in history.

However, this 5.8in display will fit inside a chassis around the same size has the current generation iPhone 7. How? Simple: Apple’s decision to ditch the Home key on this model left it with A LOT more room to play with on the iPhone 8.

The iPhone 8’s display will be a 2K setup with a display ratio that could exceed 2:1, TrendForce suggests.

The OLED panel will have a slight curve, but it won't be anything like what we've seen on Samsung's phones.

“The curve will be gentler than screens in Samsung's Galaxy S7 Edge handsets. This is partly due to the challenges of making curved glass covers to match screens, according to the source,” said Nikkei staff writer Debby Wu.

“While the curved screen will allow a viewable area of about 5.2 inches and make the iPhone even sleeker, it will not offer significant new functions"

The iPhone 8’s OLED panel is costing Apple quite a bit more than the iPhone 7’s display and this will obviously mean the iPhone is priced higher. A lot higher, most likely, because it won’t just be the display that costs more.

Where things get a little more interesting is when you dig down into the components that will make the new iPhone tick. By itself the new OLED panel isn’t that expensive ($15 vs $9 for the one inside the iPhone 7), but it is this alongside other components which hike the cost of making the phone.

This is great for Apple’s suppliers, TPK, for instance, is expected to see its margins increase from 11-12% to 22%. But bad for consumers. Why? Simple: Apple loves its high profit margins, so when the price of materials goes up so too does the price of the handset. Hence the $1000 figure being bandied around.

This, combined with higher costs for other, intricate components, is why the iPhone 8 will likely retail for $1000+ when it arrives later on this year.

The display WILL NOT be curved, the report added, but will feature 2.5D glass on the front just like current iPhone 7 and iPhone 7 Plus models.

Beyond this TrendForce believes the iPhone 8 will pack in 3GB of RAM and up to 256GB of storage.

Expect to pay $1000+ for this model.

Meanwhile, the iPhone 7 and iPhone 7 Plus will feature similar sized displays to current models. They will also have the same display resolution, though we’re hoping Apple updates the standard model to 1080p, seeing that it is now 2017.

Apple may also kill the difference in spec and performance between the iPhone 7s and iPhone 7s Plus models in order to drive adoption of the handsets.

TrendForce expects iPhone 8 sales to be off the hook, after three year’s worth of boring updates.

I think they might be right.

iPhone 8 – First With AR? 

Another BIG rumour doing the rounds about Apple’s iPhone 8 is that it will be the first iPhone to feature Apple’s new AR technology. The company, up to now, as been fairly quiet on the AR/VR front, though Tim Cook has said multiple times that he believes AR – not VR – will be the technology of the future.

Gene Munster, a relatively well known Apple analyst, claims Apple has over 100 engineers working on AR for the iPhone 8. He also says that this new AR technology will represent a huge paradigm shift in the mobile space that will force all over players to up their respective games considerably.

Munster’s claims were also backed by a report in Bloomberg, which notes that Apple is hard at work on an AR technology that will become a central component of its iPhone platform. A pair of AR glasses are also said to be in the product pipeline as well, though these won't likely appear until 2018/19.


"Revolutionary" Front Camera - Ming-chi Kuo

According to reputable KGI Securities analyst Ming-chi Kuo - you know, the one with a near 100% accurate track record when it comes to Apple and iPhone predicitons - the iPhone 8 will feature a "revolutionary" front camera setup.

Part of this will incorporate a new 3D sensor, this will apparently work in tandem with the 2D images produced by the camera sensor to create unique "3D selfies"; we're not sure exactly what this means just yet, but it sounds interesting to say the least.

This tech will also reportedly be used in the phone's facial recognition features, lending further fuel to the idea of Apple either replacing or supplementing TouchID with facial recognition for unlocking the phone, remote payment, and in-app or online purchases via Apple Pay.

Apple also owns Israeli tech firm RealFace, which is apparently at the forefront of this tech and even has facial scanning that can discern the differences between identical twins.

"Sensors used in the new camera will be able to perform depth of field calculations using a dedicated Infrared transmitter and receiver," reports PhoneArena. The camera sensor will be a Sony module, while the infrared components will be supplied by Foxconn Sharp.

"IR signals are sent out from the phone, and then are bounced off objects and are detected using the 1.4MP IR receiver. The report adds that Apple will add 3D sensing rear-facing cameras in 2018 models and beyond.

This would allow Apple to get rid of the large dual-camera system found on the Apple iPhone 7 Plus. With Apple well ahead of Android in 3D camera algorithms, according to the KGI analyst, the new technology could be unique to the iPhone for some time."

Too Expensive? 

If you’re running an older handset and have been patiently waiting to see what Apple comes up with inside Q4, you might want to consider an alternative approach – buying the iPhone 7 or iPhone 6s instead.

Why? Simple: reconditioned, you can pick one of the top tier models up for around 40% cheaper than buying a handset brand new. Reconditioned means the handset isn’t new, but because they’re “certified” at places like Gazelle it means they look new.

And if something LOOKS new who cares if it's not? 

I discovered “reconditioned phones” a couple of years ago when, eager to get out of the contract-loop, I decided to pull the trigger on a reconditioned iPhone 5s, as it was a lot cheaper than a new one (this was when the iPhone 6 had just come out). The handset was great, worked perfectly, felt as good as new, and it only cost me $350. And that meant no more contracts.

Nowadays, you can pick up the iPhone 6s Plus 128GB for $529 (down from $949 RRP for a new one). Similarly, move back a generation to the still-excellent iPhone 6 Plus and you’re looking at even bigger savings – around $359 for 128GB iPhone 6 Plus model.

Granted, the reconditioned route isn’t for everybody. But if you’re in the market for an iPhone with high storage and you don’t want to pay the best part of $900 or lock yourself into a contract until 2019 then it is definitely worth a look.

Author : Richard Goodwin

Source : knowyourmobile.com

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