Despite multiple sources claiming that the new iPhone – the iPhone 8 or iPhone ‘Edition’ – will finally hit the $1,000 barrier, a new note from UBS analyst Steven Milunovich refutes the notion, claiming the flagship iPhone will cost between $850-900 instead.

He bases the information on an increase in factory cost of $70-90 over the iPhone 7s Plus (it’s expected that Apple will release two ‘s’ cycle models as well as the redesigned model.)

The iPhone 7 Plus 32GB variant currently costs customers $769, so shifting the price of the new model up would increase the average profit for Apple, even without pushing the device over the $1,000 barrier.

Milunovich also believes the iPhone 8, which will come with an OLED screen and potentially new 3D sensors, will lead to a “bulge of buying” – iPhone 8 sales will make up 45 percent of total iPhone sales in 2018.

“Apple customers seem fine with paying more for products they feel are differentiated,” he says.

In other news, Apple has reportedly ordered a massive 70 million OLED panels from Samsung, which gives weight to Milunovich’s comment about the popularity of the new model.

The iPhone 8 is expected to launch this September. Read more about the iPhone 8.

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