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
54 months ago
I'll take it without the bundle. So 200 cheaper right. Stop laughing people.
Score: 29 Votes (Like | Disagree)
Radon87000 Avatar
54 months ago
Fat chance with Timmy at the helm.
Score: 26 Votes (Like | Disagree)
Geert76 Avatar
54 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
54 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
54 months ago
Just give us something useful like free Applecare+, that would actually lessen the price impact.
Score: 24 Votes (Like | Disagree)
psac Avatar
54 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)

Top Stories

affinity designer contour tool

Serif Updates Affinity Photo, Designer, and Publisher With New Tools and Functions

Thursday February 4, 2021 1:58 am PST by
Serif today announced across-the-board updates for its popular suite of Affinity creative apps, including Affinity Photo, Affinity Designer, and the Apple award-winning Affinity Publisher for Mac, all of which were among the first professional creative suites to be optimized for Apple's new M1 chip. "After another year which saw record numbers of people switching to Affinity, it's exciting to...
studio buds family

Beats Studio Buds Debuting Today With Active Noise Cancellation, Stemless Design, and More for $150

Monday June 14, 2021 8:00 am PDT by
We've seen a lot of teasers about the Beats Studio Buds over the past month since they first showed up in Apple's beta software updates, and today they're finally official. The Beats Studio Buds are available to order today in red, white, and black ahead of a June 24 ship date, and they're priced at $149.99. The Studio Buds are the first Beats-branded earbuds to truly compete with AirPods...
maxresdefault

Craig Federighi and Greg Joswiak Discuss iPadOS 15, macOS Monterey, Privacy, Shortcuts on Mac, and More

Saturday June 12, 2021 6:12 am PDT by
As is tradition, Apple executives Craig Federighi and Greg Joswiak joined Daring Fireball's John Gruber in an episode of The Talk Show to discuss several announcements that Apple made over this weeks WWDC, including iPadOS 15, macOS Monterey, and a large focus around privacy. Federighi kicks off the conversation discussing the common architecture, now thanks to Apple silicon, across all of...
youtube apple tv

YouTube Discontinuing 3rd-Generation Apple TV App, AirPlay Still Available

Wednesday February 3, 2021 3:09 pm PST by
YouTube is planning to stop supporting its YouTube app on the third-generation Apple TV models, where YouTube has long been available as a channel option. A 9to5Mac reader received a message about the upcoming app discontinuation, which is set to take place in March.Starting early March, the YouTube app will no longer be available on Apple TV (3rd generation). You can still watch YouTube on...
adobe photoshop sketch ipad

Adobe Removing Photoshop Sketch and Illustrator Draw From App Store in July

Saturday June 26, 2021 4:02 pm PDT by
Adobe this week reminded customers that its Photoshop Sketch and Illustrator Draw apps will no longer be available for download on iOS and Android starting July 19. Adobe plans to stop supporting the apps for existing users on January 10, 2022. In a support document, Adobe said users can easily migrate to its Fresco app, which combines many Photoshop Sketch and Illustrator Draw drawing and...
REC ASA CODE2016 20160601 205816 2745

Elon Musk Reportedly Demanded to Become Apple CEO as Part of Potential Tesla Acquisition [Update: Musk Denies]

Friday July 30, 2021 9:04 am PDT by
Tesla CEO Elon Musk reportedly once demanded that he be made Apple CEO in a brief discussion of a potential acquisition with Apple's current CEO, Tim Cook. The claim comes in a new book titled "Power Play: Tesla, Elon Musk and the Bet of the Century," as reviewed by The Los Angeles Times. According to the book, during a 2016 phone call between Musk and Cook that touched on the possibility of ...
homepod feature blue2

Looking to Grab a HomePod Before They're Gone? These Retailers Still Have Stock

Monday March 15, 2021 6:54 am PDT by
Apple last week discontinued the original HomePod, marking just over three years on the market for the full-size smart speaker. If you're looking to purchase the larger HomePod before it's completely gone, there are still some options online today. The biggest retailer with remaining stock on the HomePod is Apple itself, which has the White HomePod for $299.00 on its website. Space Gray is...
september 2021 event ar logo

Apple's September 14 Event Page Features AR Logo on iPhone

Tuesday September 7, 2021 9:23 am PDT by
Apple this morning announced a digital-only event that will be held on Tuesday, September 14, and if you view the event webpage on an iPhone, you can tap on the logo to open up Apple's Safari AR viewer and you'll see the three-dimensional logo move in real-time in the real world. Just open up the event site on an ‌iPhone‌ or iPad and tap right on the logo to open up the AR version. The...
iphone 11 night mode photos

Apple Reveals New Night Mode Photo Feature Exclusive to iPhone 11 Series

Tuesday September 10, 2019 12:23 pm PDT by
Apple today announced the iPhone 11, iPhone 11 Pro, and the iPhone 11 Max, all-new models that boast improved cameras, and specifically, a dramatic new Night Mode photo feature. Last year, Google introduced its impressive Night Sight camera mode, a software-based feature that allows users to take detailed pictures in dark environments using Google Pixel smartphones. Apple's new Night...
iPhone 13 Dummy Thumbnail 2

Kuo: iPhone 13 to Feature LEO Satellite Communications to Make Calls and Texts Without Cellular Coverage

Sunday August 29, 2021 7:39 am PDT by
The iPhone 13 will feature low earth orbit (LEO) satellite communication connectivity to allow users to make calls and send messages in areas without 4G or 5G coverage, according to the reliable analyst Ming-Chi Kuo. In a note to investors, seen by MacRumors, Kuo explained that the iPhone 13 lineup will feature hardware that is able to connect to LEO satellites. If enabled with the relevant...