Barclays Proposes Apple Could Lessen iPhone 8 Pricing Impact by Including Apple Music/iCloud Bundle

Leading up to Apple's September 12 media event, the exact price tag of the upcoming iPhone 8 has been one of the biggest question marks surrounding the smartphone. The latest rumors describe a premium device that will start at $999 (64GB) in the United States, then rise to $1,099 (256GB), and cap at $1,199 (512GB), although of course none of these price points or storage configurations have been confirmed.

Recently, a team of Barclays analysts including Mark Moskowitz have theorized one potential solution for the device's premium price tag: Apple could debut an iPhone 8 bundle that packs in a year's worth of Apple Music and a 200GB iCloud subscription into the cost of the smartphone (via Business Insider). In the U.S., one year of Apple Music costs around $120 at $10/month (although Apple sells gift cards that knock the annual price down to $100/year), while a 200GB monthly iCloud subscription runs at $2.99/month, equating to around $36 each year.

iphone 8 bundle
Taken from the cost of the alleged "cheapest" iPhone 8 at $1,000, users would actually be paying about $844 for the smartphone and $156 for the bundled services, which the Barclays analysts said would be "more palatable." Barclays' prediction is based on a survey of wireless service customers (see results chart below), which found that Apple "might" sell around 40.3 million standalone iPhone 8 devices, but with the Apple Music/iCloud bundle that statistic could jump to 64.4 million iPhone 8 units sold.

"Barclays analyst Mark Moskowitz and his team think they have figured that out. Apple will offer free subscriptions to Apple Music and 200GB of iCloud storage for one year, a deal worth $156, to anyone who buys iPhone 8. That will bring the perceived cost of the phone back down to a more palatable $844.

While a bundle like this would be a logical move by Apple, locking iPhone 8 customers into the company's ever-growing services ecosystem, Barclays' report is just a prediction and has not yet been corroborated by any other sources as a potential launch plan. In the past, Barclays has gotten close at reporting the facts about unreleased products, but has missed some details. In November 2016, Barclays Research analysts predicted three new iPads would come in March 2017, including refreshed 9.7-inch and 12.9-inch versions and an all-new bezel-free 10.9-inch model.

barclays research bundle
Only a new 9.7-inch iPad launched in March of this year, while a 12.9-inch and 10.5-inch iPad Pro debuted at Apple's WWDC event in June. Analysts at Barclays have made a handful of predictions that can't yet be rated for accuracy since they concern the iPhone 8, including an expected "limited quantity" September launch, the inclusion of a True Tone display, a Lightning to headphone jack adapter in the box, and faster charging thanks to a 10W power adapter with a USB-C connector and an integrated USB-C Power Delivery chip.

In a separate report today by DigiTimes, Taiwanese supply chain sources have corroborated many of the current rumors surrounding the iPhone 8's pre-order date and price range. Taiwan is said to be "included in the first group of markets" where the iPhone 8, iPhone 7s, and iPhone 7s Plus will be made available for pre-order, with customers in Taiwan reportedly able to place their pre-order on September 15, the sources said. This date makes sense when looking back at the past five years of iPhone launch history.

Like previous reports, DigiTimes cites iPhone 8 prices at $999, $1,099, and $1,199 levels, with storage capacities of 64GB, 256GB, and 512GB, respectively. Samsung's monopoly of the OLED supply chain has been rumored as the explanation behind these high iPhone 8 prices. As is typical with new iPhones, the iPhone 8's launch is expected to be riddled with shortages and shipping delays, and could even ship sometime after the LCD iPhone 7s and iPhone 7s models.

Fortunately, we're only four days away from Apple's September 12 event, where the company will reveal more information about the iPhone 8, iPhone 7s, iPhone 7s Plus, 4K Apple TV, Apple Watch Series 3, and more.

Top Rated Comments

Zxxv Avatar
85 months ago
I'll take it without the bundle. So 200 cheaper right. Stop laughing people.
Score: 29 Votes (Like | Disagree)
Radon87000 Avatar
85 months ago
Fat chance with Timmy at the helm.
Score: 26 Votes (Like | Disagree)
Geert76 Avatar
85 months ago
just make the new oled iPhone €/$ 50 cheaper instead please, I dont need Apple Music ;)

thank you, Tim! :cool:
Score: 26 Votes (Like | Disagree)
Paradoxally Avatar
85 months ago
A big nope. I don't buy it. They don't need to give anything away for free, and it hasn't been their style.
So are we just supposed to forget the (forced) free U2 album?
Score: 26 Votes (Like | Disagree)
ACST Avatar
85 months ago
Just give us something useful like free Applecare+, that would actually lessen the price impact.
Score: 24 Votes (Like | Disagree)
psac Avatar
85 months ago
A big nope. I don't buy it. They don't need to give anything away for free, and it hasn't been their style.
Score: 22 Votes (Like | Disagree)

Popular Stories

iOS 17

10 New Things Your iPhone Can Do in Next Week's iOS 17.4 Update

Friday March 1, 2024 1:30 am PST by
Apple will this month release iOS 17.4, its biggest iPhone software update of the year so far, featuring a number of features and changes that users have been anticipating for quite a while. Below, we've listed 10 new things that your iPhone will be able to do after you've installed the update, which is projected to arrive by March 7. When the day arrives, be sure to check Settings ➝...
Apple Maps vs Google Maps Feature

Apple Maps vs. Google Maps: Which Is Better?

Friday March 1, 2024 7:10 am PST by
Apple Maps has been providing navigational guidance to Apple users for almost 13 and a half years now, and much has changed about the app in that time. However, according to data from Canalys, the overwhelming majority of iPhones in the U.S. still have Google Maps downloaded as an alternative to Apple Maps, which comes preinstalled on all iPhones. We want to hear from MacRumors readers. Which do...
apple tv plus banner

Apple TV+ Gains Over 50 Movies for a Limited Time

Friday March 1, 2024 6:29 am PST by
Apple TV+ today gained over 50 movies, adding to its back catalog of content for a limited time. The collection includes a large number of popular and classic titles. Subscribers can access the movies in a "Great Movies on Apple TV+" section in the Apple TV app. Some titles are also available in 3D. Movies in the collection include: 21 Jump Street 300 American Sniper Argo ...
Google maps feaure

Google Maps Finally Rolls Out Glanceable Directions

Wednesday February 28, 2024 2:07 am PST by
After more than a year since announcing the feature, Google Maps is finally rolling out glanceable directions on Android and iOS (via Android Police). The feature allows users to view turn-by-turn directions and a live ETA directly from their device's lock screen – information that was previously only visible when a phone was unlocked. Glanceable directions also work on the app's route...
iOS 18 Mock iPhone 16 Feature Gray

iOS 18 Rumored to Be Compatible With These iPhone Models

Tuesday February 27, 2024 6:31 am PST by
iOS 18 will be compatible with the iPhone XR, and thereby also the iPhone XS and iPhone XS Max models with the same A12 Bionic chip, according to a post on X today from a private account with a proven track record of sharing build numbers for upcoming iOS updates. The post was spotted by MacRumors contributor Aaron Perris, and it has since been deleted. However, this was likely because the...
M3 MacBook Air Feature

New MacBook Air Models Launching This March: 5 Features to Expect

Wednesday February 28, 2024 1:50 am PST by
The existing 15-inch MacBook Air arrived in June 2023, which is not that long ago in terms of Mac update cycles. However, Apple released the current 13-inch ‌MacBook Air back in June 2022. It is now the oldest Mac in Apple's current crop, having not been updated in 600 days. But rumors suggest that is unlikely to be the case for much longer. According to Bloomberg's Mark Gurman, Apple has...
airpods pro 2 pink

Apple Releases New Beta Firmware for AirPods Pro 2

Thursday February 29, 2024 11:41 am PST by
Apple today introduced a new beta firmware update for the AirPods Pro 2, both the USB-C and Lightning versions. The new firmware is version 6E188, up from the prior 6B34 firmware released in December. Apple does not often provide details or notes on what features might be included in the refreshed firmware, so it is unclear what's new. Note that this software is limited to developers at the...