Apple Tests Consumer Loyalty and Pockets with $1,000 iPhone 8

People wait in front of the Apple store in Munich, before the 2015 worldwide launch of the iPhone 6s. (AP)
People wait in front of the Apple store in Munich, before the 2015 worldwide launch of the iPhone 6s. (AP)
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Apple Tests Consumer Loyalty and Pockets with $1,000 iPhone 8

People wait in front of the Apple store in Munich, before the 2015 worldwide launch of the iPhone 6s. (AP)
People wait in front of the Apple store in Munich, before the 2015 worldwide launch of the iPhone 6s. (AP)

Apple is expected to unveil on Tuesday the iPhone 8 ten years after co-founder Steve Jobs released the first version. A decade later, the new phone is likely to sell for $1,000, making it the company’s most expensive yet.

Crossing into a new financial frontier, this will test how much consumers are willing to pay for a device that's become an indispensable part of modern life.

The unveiling of a dramatically redesigned iPhone will likely be the marquee moment Tuesday when Apple hosts its first product event at its new spaceship-like headquarters in Cupertino, California. True to its secretive ways, Apple won't confirm that it will be introducing a new iPhone, though a financial forecast issued last month telegraphed something significant is in the pipeline.

In addition to several new features, a souped-up "anniversary" iPhone could also debut at an attention-getting $999 price tag, twice what the original iPhone cost. It would set a new price threshold for any smartphone intended to appeal to a mass market.

What a thousand bucks will buy

Various leaks have indicated the new phone will feature a sharper display, a so-called OLED screen that will extend from edge to edge of the device, thus eliminating the exterior gap, or "bezel," that currently surrounds most phone screens.

It may also boast facial recognition technology for unlocking the phone and wireless charging. A better camera is a safe bet, too.

All those features have been available on other smartphones that sold for less than $1,000, but Apple's sense of design and marketing flair has a way of making them seem irresistible — and worth the extra expense.

"Apple always seems to take what others have done and do it even better," said Carolina Milanesi, an analyst with Creative Strategies.

Why phones cost more, not less

Apple isn't the only company driving up smartphone prices. Market leader Samsung Electronics just rolled out its Galaxy Note 8 with a starting price of $930.

The trend reflects the increasing sophistication of smartphones, which have been evolving into status symbols akin to automobiles. In both cases, many consumers appear willing to pay a premium price for luxury models that take them where they want to go in style.

"Calling it a smartphone doesn't come close to how people use it, view it and embrace it in their lives," said Debby Ruth, senior vice president of the consumer research firm Magid. "It's an extension of themselves, it's their entry into the world, it's their connection to their friends."

From that perspective, it's easy to understand why some smartphones now cost more than many kinds of laptop computers, said technology analyst Patrick Moorhead.

"People now value their phones more than any other device and, in some cases, even more than food and sex," Moorhead said.

The luxury-good challenge

Longtime Apple expert Gene Munster, now managing partner at research and venture capital firm Loup Ventures, predicts 20 percent of the iPhones sold during the next year will be the new $1,000 model.
Wireless carriers eager to connect with Apple's generally affluent clientele are likely to either sell the iPhone at a discount or offer appealing subsidies that spread the cost of the device over two to three years to minimize the sticker shock, said analyst Jan Dawson of Jackdaw Research.

Even Munster's sales forecast holds true, it still shows most people either can't afford or aren't interested in paying that much for a smartphone.

That's one reason Apple also is expected to announce minor upgrades to the iPhone 7 and iPhone 7. That will make it easier for Apple to create several different pricing tiers, with the oldest model possibly becoming available for free with a wireless contract.

But the deluxe model virtually assures that the average price of the iPhone — now at $606 versus $561 three years ago — will keep climbing. That runs counter to the usual tech trajectory in which the price of electronics, whether televisions or computers, falls over time.

"The iPhone has always had a way of defying the law of physics," Munster said, "and I think it will do it in spades with this higher priced one."

Eyes on China

Apple Inc also hopes the number’s auspicious connotations in China will help turn around fortunes in the world’s biggest smartphone market after six quarters of falling sales.

Chinese shoppers, however, are already counting the cost, with the latest model’s $1,000 price tag sitting at roughly double the average Chinese monthly salary.

The success of Apple’s next iPhone in China is crucial for the Cupertino-based firm, which has seen its once-coveted phone slip into fifth position in China behind offerings from local rivals Huawei Technologies Co Ltd, Oppo, Vivo and Xiaomi Inc.

Greater China, which for Apple includes Taiwan and Hong Kong, accounted for roughly 18 percent of iPhone sales in the quarter ended in July, making it the company’s top market after the United States and Europe. Yet those sales have been declining steadily and are down 10 percent from a year earlier, in contrast with growth in all other regions.

While the iPhone 6 took China by storm in 2014, models since have received a more muted response.

“I’ll wait for a drop in price, it’s too expensive,” said Angie Chen, 23, a project manager in Nanjing and iPhone 6 owner.

Chen said she might even wait for the new phone’s successor, when prices will fall. “It’s a nice number to hear, but there’s no rush.”

Eight is the luckiest number in China because it sounds similar to the phrase meaning “to get rich”.

Mentions of “iPhone 8” on popular Chinese social media platform Weibo - an indicator of consumer interest - were running slightly ahead of the similar period before the iPhone 7 launch, but were far more muted than with the iPhone 6.



Dollar Ticks Lower as Bond Markets Stabilize, US Jobs Data Looms

US one hundred dollar notes are seen in this picture illustration taken in Seoul February 7, 2011. REUTERS/Lee Jae-Won/File Photo
US one hundred dollar notes are seen in this picture illustration taken in Seoul February 7, 2011. REUTERS/Lee Jae-Won/File Photo
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Dollar Ticks Lower as Bond Markets Stabilize, US Jobs Data Looms

US one hundred dollar notes are seen in this picture illustration taken in Seoul February 7, 2011. REUTERS/Lee Jae-Won/File Photo
US one hundred dollar notes are seen in this picture illustration taken in Seoul February 7, 2011. REUTERS/Lee Jae-Won/File Photo

The dollar declined against major peers on Friday, trimming gains made this week as bond markets stabilised and traders awaited key US jobs data expected to firm up the case for an interest rate cut by the Federal Reserve.

Data on Thursday showing higher-than-expected applications for jobless benefits in the US served as a prelude to the more critical nonfarm payrolls report. Bonds rallied in the US, Europe and Japan after fiscal concerns spurred a run-up in long-term yields, while the S&P 500 hit a new all-time high.

"It seems to me that the reaction to the ADP yesterday was a bit too muted," said Francesco Pesole, FX strategist at ING.

"All in all, it is pointing to a probably weak payroll figure today. I was a little surprised to see the dollar holding up yesterday."

He said dollar weakness in early European trading on Friday could be indicative of traders offloading the greenback ahead of the US job figures at 8:30 a.m. ET (1230 GMT).

On Friday, the dollar index, which tracks the greenback against a basket of currencies of other major trading partners, dipped 0.2% to 98.018, trimming its gain for the week to 0.2%, Reuters reported.

The dollar dropped 0.2% to 148.14 yen. The euro was up 0.3% on the day at $1.16845.

In the UK, sterling was last up 0.3% at $1.34720, while versus the euro, the pound was unchanged at 86.70 pence.

The pound held steady after Friday's news that British Deputy Prime Minister Angela Rayner resigned after admitting to underpaying property tax on a new home, in a fresh blow for her boss, Prime Minister Keir Starmer.

British finance minister Rachel Reeves will stay in her role despite an expected wider government reshuffle, BBC News reported on Friday following Rayner's resignation.

Earlier, UK retail sales data for July came in hot but also failed to move the dial on sterling.

Focus remains on the dollar and the Fed's likely trajectory on interest rates. US President Donald Trump's meddling with Fed policy and his unpredictable tariff regime has made investors shy about holding dollar assets of late, said Bart Wakabayashi, the Tokyo Branch Manager of State Street.

"The dollar remains very, very underweight," Wakabayashi said. "I do think there is room for the dollar buying to come back at some point. Maybe investors are just waiting for the rate cut to happen and then pile back in."

Several Fed officials said labour market worries continue to support their calls for rate cuts, boosting expectations of an imminent easing. The Fed is due to convene on September 16-17.

The Labor Department's Bureau of Labor Statistics (BLS) will report US nonfarm payrolls for August, with economists surveyed by Reuters expecting an increase of 75,000 jobs after a gain of 73,000 in July.

That follows figures on Thursday showing that US private payrolls rose by less than expected in August and jobless claims in the final week of the month were higher than predicted.

"The risk is still tilted to payrolls underperforming US economists' expectations that will weigh on the USD tonight," Joseph Capurso, head of international economics at the Commonwealth Bank of Australia, wrote in a note.

Traders are pricing in a near-100% chance of the Fed cutting interest rates later this month, up from 87% a week ago, CME FedWatch showed.

Michael Brown, senior research strategist at Pepperstone, said that Friday's jobs report doesn't really matter in the grand scheme of things.

"The Fed will be delivering a 25-bp cut at the September meeting. A hot report shan't dissuade them from doing so, given the broader trend of softening jobs data. A cool report shan't convince them to plump for a larger rate reduction, given lingering upside inflation risks," he wrote in a note.

Trump signed an order on Thursday to implement lower tariffs on Japanese automobile imports and other products that were announced in July. Japan also confirmed its commitment to an annual $7 billion worth of energy purchases from the US, a joint statement from the countries showed.

The Australian dollar rose 0.4% to $0.6544. The New Zealand dollar rose 0.6% to $0.58785.


Gold Poised for Best Week in Three Months; US Jobs Data on Tap

A goldsmith weighs gold jewellery inside a showroom in Ahmedabad, India, July 31, 2025. REUTERS/Amit Dave/File Photo
A goldsmith weighs gold jewellery inside a showroom in Ahmedabad, India, July 31, 2025. REUTERS/Amit Dave/File Photo
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Gold Poised for Best Week in Three Months; US Jobs Data on Tap

A goldsmith weighs gold jewellery inside a showroom in Ahmedabad, India, July 31, 2025. REUTERS/Amit Dave/File Photo
A goldsmith weighs gold jewellery inside a showroom in Ahmedabad, India, July 31, 2025. REUTERS/Amit Dave/File Photo

Gold rose on Friday and headed for its best week in three months, supported by growing expectations of a Federal Reserve rate cut this month, as attention turns to the US non-farm payrolls data due later in the day.

Spot gold was up 0.4% at $3,557.99 per ounce, as of 0500 GMT, hovering near an all-time high of $3,578.50 touched on Wednesday. Bullion has risen 3.2% so far this week.

US gold futures for December delivery gained 0.3% to $3,616.70.

"Gold is creeping higher today, with traders not willing to try and push the price too much higher until we see the non-farm payrolls print," KCM Trade Chief Market Analyst Tim Waterer said.

"Market dynamics remain in favor of gold with rate cuts likely on the way, Trump's attempts to shape the Fed into a more dovish body, and the Russia-Ukraine conflict not slowing down."

The number of Americans filing new applications for jobless benefits increased more than expected last week, consistent with softening labor market conditions.

Furthermore, the ADP National Employment Report showed US private payrolls increased less than expected in August.

Several Fed officials this week said labor market concerns continue to animate their belief that rate cuts lie ahead. Fed Governor Christopher Waller said he thinks the US central bank should be cutting at its next meeting, according to Reuters.

Traders are currently pricing in a near 100% chance of a 25-basis-point rate cut at the end of the two-day Fed policy meeting on September 17, according to CME Group's FedWatch tool.

Non-yielding gold typically performs well in a low-interest-rate environment.

Focus will also be on the US non-farm payrolls data, due at 1230 GMT, that could offer more clarity on the Fed's interest rate trajectory.

Elsewhere, spot silver rose 0.5% to $40.85 per ounce and was heading for its third straight weekly gain. Platinum gained 1.1% to $1,382.33 and palladium was flat at $1,127.01.


Oil Heads for Weekly Loss as Higher Supply Expected

Cuba-flagged oil tanker Vilma carrying about 400,000 barrels of oil leaves Mexico’s Pajarito’s port on its way to Cuba, in Pajaritos, Mexico October 26, 2024. REUTERS/Angel Hernandez/File Photo
Cuba-flagged oil tanker Vilma carrying about 400,000 barrels of oil leaves Mexico’s Pajarito’s port on its way to Cuba, in Pajaritos, Mexico October 26, 2024. REUTERS/Angel Hernandez/File Photo
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Oil Heads for Weekly Loss as Higher Supply Expected

Cuba-flagged oil tanker Vilma carrying about 400,000 barrels of oil leaves Mexico’s Pajarito’s port on its way to Cuba, in Pajaritos, Mexico October 26, 2024. REUTERS/Angel Hernandez/File Photo
Cuba-flagged oil tanker Vilma carrying about 400,000 barrels of oil leaves Mexico’s Pajarito’s port on its way to Cuba, in Pajaritos, Mexico October 26, 2024. REUTERS/Angel Hernandez/File Photo

Oil extended its decline into a third session on Friday, heading for a weekly loss for the first time in three weeks as expectations grow of higher supply and a surprise increase in US crude inventories added to demand concerns.

Reuters reported on Wednesday that eight members of OPEC+ will consider raising production further at a meeting on Sunday. US crude inventories rose 2.4 million barrels last week, rather than falling as analysts expected.

Brent crude futures fell 35 cents, or 0.5%, to $66.64 a barrel by 0810 GMT, while US West Texas Intermediate crude dropped 33 cents, or 0.5%, to $63.15.

"There are increasing stories and signs of a future where feedstock supply is unlikely to be a problem," said John Evans at oil broker PVM.

For the week, Brent is down 2.2% and WTI down 1.3%.

Expectations are growing that the Organization of the Petroleum Exporting Countries and allies like Russia - known together as OPEC+ - will push more barrels into the market to regain market share at Sunday's meeting.

Another boost would mean that OPEC+, which pumps about half of the world's oil, would be starting to unwind a second layer of output cuts of about 1.65 million barrels per day, or 1.6% of world demand, more than a year ahead of schedule.

Strength in the downstream sector has been a key support for prices, BMI analysts said in a report, but refining margins will likely be squeezed in coming months as global demand growth wanes and refiners ramp up maintenance.

Supply risks continue to support the market, however. US President Donald Trump told European leaders on Thursday that Europe must stop buying Russian oil, a White House official said.

Any cuts to Russia's crude exports or other disruption to supplies could push global oil prices higher.