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iPhone X expensive? 2018's iPhone could cost you even more

Analysts from UBS predict that the flagship 2018 iPhone may cost $1,100.

Josh Miller/CNET

If you thought the iPhone X was pricey, this year's iPhone could take it up a notch.

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Would you pay even more than $1,000 for the latest iPhone?

Josh Miller/CNET

Apple's flagship iPhone for 2018 is predicted to cost $1,100 (which converts to about £770 and AU$1,415) according to UBS analysts Steven Milunovich and Benjamin Wilson (via Business Insider). That's about $100 over the iPhone X's $999 price tag. The report adds that the iPhone X may be selling worse than anticipated, possibly due to the phone's high price.

The cost of owning the most premium smartphones is going up, widening a gap between mobile haves and have-nots. An even pricier iPhone for 2018 would underscore the continuing divide, pricing cost-conscious buyers out of certain innovations.

To counterbalance the rising price of the most premium iPhone in the line, USB analysts suggest that Apple might release relatively cheaper alternatives -- like how the iPhone 8 and iPhone 8 Plus seemed like a steal when they released alongside the iPhone X -- in addition to discounting older models, like last year's iPhones and the iPhone SE.

According to the report, Apple's strategy could look something like this:

  • "Cascade top-of-the-line features down the price curve (screen size, camera, etc)"
  • "Move premium customers up the price curve with moderately higher prices"
  • "Establish higher price bands based on new features while tapping into lower-end markets with older devices"
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Apple is rumored to release three new iPhones in September, according to Ming-Chi Kuo, a KGI analyst: 5.8-inch and 6.5-inch OLED iPhones thought to be the iPhone X successor and its larger "Plus" model, as well as a cheaper 6.1-inch LCD iPhone. Apple is also rumored to release an iPhone SE 2.

If the UBS analysts' prediction holds true, it's possible that the new OLED iPhones would cost $1,100 or more -- keep in mind that the iPhone X with the most storage already costs $1,149 (or £1,149 and AU$1,829). But at the same time the 6.1-inch LCD iPhone and iPhone SE may give buyers a cheaper alternative.

Apple did not immediately respond to a request for comment.

Read next: What do I need to give up for a $1,000 iPhone?

Read also: Everything we know about the rumored iPhone SE 2