The iPhone 8 Plus and X sport dual 12 MP cameras in back, while the X's front-facing camera has unique depth-sensing capabilities to allow for Face ID. It's a nice feature, although hardly innovative, with wireless charging having been around for more than five years on other smartphones. The iPhone 8 has a starting retail price of $699, which is $50 more than the iPhone 7 however. The costs of materials for a 32 GB iPhone 7 from a year ago is $237.94. Costs for software and research and development aren't factored in these estimates. The 64 GB iPhone 8 Plus is selling for $799 whereas the 32 GB iPhone 7 Plus was launched with a price tag of $769.
The substantial components costs for the entry level 64GB iPhone 8 Plus starts at around $288.08. That's up from $270.88 in the iPhone 7 Plus, IHS estimated.
IHS has attributed this price hike to three of the phone's parts: camera, memory and processing. These are the sections where the company has improved the new generation iPhones.
"The higher total BOM cost for the iPhone 8 Plus can't be tied to a single area or feature", said Andrew Rassweiler, senior director of cost benchmarking services for IHS, in a press release.
Apple might not be selling as many iPhone 8 units as some expected, but it's certainly profiting off the sale of each unit. The reason for that is because the new camera system takes a lot of time to produce, and if it is going to be as high in demand as he predicted, production will have a hard time catching up with demand, at least until early 2018.
A quick check of Apple's (NASDAQ: AAPL) online store reveals something that at first glance might be alarming to Apple investors: The iPhone 8 and its larger sibling, the iPhone 8 Plus, are in ample supply just days after they became available. The opening weekend sales o fthe two handsets were far below the Apple's forecasts.
If Kuo's speculations are correct, Apple will set a new record when it comes to pre-orders for any iPhone models.
In fact, the iPhone X might be tough to get hold of all the way until later in 2018, perhaps in Spring, according to a new report from usually reliable analyst Ming-Chi Kuo.