iPhone 8 Might Bundle Free Apple Music And iCloud Storage To Justify $1,000 Price Tag

It's looking more and more likely that the next flagship iPhone will have a price tag that starts at around $1,000. This shouldn't come as a surprise given the rising costs of flagship smartphones, and expensive components (like the OLED display panel) that Apple has to factor in and still enjoy its enviable profit margins.

Now, some analysts are suggesting that Apple might go the bundle route to make those who might otherwise be averse to spending $1,000 on a smartphone more receptive. Analysts for Barclays claim that Apple might include a one-year subscription to Apple Music and 200GB of iCloud storage bundled in with the iPhone 8. One-year of Apple Music costs $120, while 200GB of iCloud storage costs $36.

Compared to the cost of actual hardware, giving away $156 in services for “free” would be a cost-effective strategy for Apple and could be appealing to customers. The value of an Apple Music subscription to customers is undeniable, and there's no doubt that 200GB of iCloud storage is a bonus. After all, Apple in its usual stinginess only gives iOS users 5GB of storage for free to use across ALL of their devices. 200GB would give users a lot more breathing room for iCloud backups and photos (among other things).

Apple isn't known for bundling in freebies with the purchase of an iPhone, but then again, we also have never witnessed an iPhone that starts at $1,000. The only thing that comes close is the iPhone 7 Plus, which is priced at $769, $869 and $969 for the 32GB, 128GB and 256GB models respectively. Bundled offers are more common with Android OEMs, who often throw in freebies like the Google Assistant. Customers who purchase a new Galaxy Note 8 can take their pick of a free 256GB microSDXC card and a Qi Wireless Charger, or a Samsung Gear 360 4K VR camera.

However, we would gladly accept being proven wrong with a lower starting price for the iPhone 8. After all, the original iPad was rumored to have a starting price of $1,000, but Apple surprised us all with a base price of $499.