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The buzz surrounding Apple Inc’s (AAPL - Free Report) iPhone 8 is growing louder as we approach its big event to be held on Sep 12, 2017.

Apple is expected to unveil the latest iPhone to mark its tenth anniversary. It will be a huge leap in terms of innovation with features likea glass body, a dual curved edge-to-edge OLED (organic light-emitting diode) display with wireless charging (USB-C) and higher storage options. The camera is likely to be far better than its predecessors.

OLED display is being increasingly adopted as it comes with improved brightness, contrast and efficiency compared with LCD or Plasma displays. Television sets have long been equipped with OLED displays. Smartphones are also catching up fast.Per reports, the company has ordered nearly 100 million OLED screens from Samsung Electronics. 

There are humongous expectations from the iPhone 8 cycle. However, it is the price point that is seen as a potential threat to iPhone 8’s sales. Reportedly, iPhone 8 could be priced more than $1,000 dollars.  Many analysts observe that consumers may not be willing to spend that much amount on a phone whose features aren’t exactly exclusive. For instance, Samsung phones have OLED display and wireless charging options.

However, an analyst with Barclays observed that providing freebies with iPhone 8 could make the $1000 tag more reasonable. Per a survey conducted, Barclays’ analyst points out that if the average selling price (ASP) drops to $800 from $1000, users’ buying intention will double from 18% to 36%.

Survey shows that if Apple could include a one-year free subscription to Apple Music and iCloud storage, which otherwise costs about $156, iPhone 8 sales may increase to 64 million in 2018. Currently, without the freebies, the sales figure is lower by 24 million.

However, another analyst has observed that though the idea of providing freebies isn’t crazy but with Apple, it might simply not be possible.

He argues that demand for a new iPhone has always been “off the charts”. A redesigned iPhone 8 will simply do not have dearth of buyers.

More importantly, giving out freebies is just not Apple’s business model. It thrives on selling “premium products at premium prices”. Therefore, Apple bundling services to boost iPhone 8 is just not possible, adds the analyst.

The debate over the exorbitant price has been raging on for some time now. iPhone 7 and 7 Plus editions with 256GB storage carry price tags of $849 and $969, respectively. So a price tag north of $1000 should not be considered unreasonable for a fully redesigned OLED iPhone 8.

iPhone (4GB model) was priced at $499 way back in 2007, which was unheard of back then. Yet, Apple scored a home run with the device. The power of Apple’s fan base cannot be undermined.

Zacks Rank and Share Price Movement

At present, Apple carries a Zacks Rank #3 (Hold).

Notably, the company has outperformed the industry in the past one year. Shares of Apple have surged 52.3% compared with the industry’s 50.7% increase.

Stocks to Consider

Better-ranked stocks in the broader technology sector include Applied Materials (AMAT - Free Report) , Activision Blizzard (ATVI - Free Report) and Applied Optoelectronics (AAOI - Free Report) , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth rate for Applied Materials, Activision and Applied Optoelectronics is currently projected to be 17.1%, 13.6% and 17.5%, respectively.

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