Simona Jankowski and her teammates at Goldman Sachs are expecting the base model iPhone 8 to cost about $1,000.
In a note obtained by Business Insider, the analysts also expect two accompanying models to debut in September: the iPhone 7s and iPhone 7s Plus. Pricing for the base models of the those devices are expected to carry over the current iPhone 7 and iPhone 7 Plus prices of $649 and $769, respectively. The iPhone 8 is forecast to start at $999 for a 128GB model and $1,099 for a 256GB variant.
Components contributing to the inflated price include a 5.8-inch OLED display at $35 per unit, a 3D texture sensor at $20 and more efficient flash memory disks that could add between $16 and $29 to each phone’s cost. IHS Markit estimated the iPhone 7 to have costed $225 to assemble. A maximum spec iPhone 7 Plus currently costs $969.
Jankowski addressed rumors of iPhone 8 sales potentially being held back due to component yield issues, some of them affecting things like the biometric authentication being predicted. She claims that Apple should have had a feasible design it’s worked on in time for mass production.
“Apple usually explores multiple designs in parallel,” Jankowski said. “However, with only four months left until launch, we believe Apple has now locked down the design.”