It’s no secret that the Apple iPhone is an expensive mobile device. The entry-level iPhone 7 is priced at $649 while the more feature-packed 256GB iPhone 7 Plus is at a whopping $969, a cost that is way higher than most other smartphones currently on the market. With the iPhone 8’s release looming around the corner, its price is once again the talk of the town.

Analysts and Apple experts believe that the new iPhone will most likely hit the $1000 mark. In addition to that, they also think the company will release not just one model this year, but three.

How Many New iPhones Will There Be?

Insiders say we should expect three phones. The first two releases will be an upgrade of the iPhone 7 and iPhone 7 Plus with an improved processor and upgraded camera. The third one, it seems, will be the long-awaited iPhone 8 which is rumored to be priced at $1,200 or even more.

Looks like Apple #iPhone 8 might cost $1200 https://t.co/wByYXaMUCe pic.twitter.com/9q0HfECsYk

— Express Technology (@expresstechie) July 11, 2017

Will the iPhone 8 Features Justify the Cost?

Apple’s iPhone 8 is set to open up a new “luxury” tier since its cost will be $550 more than the previous model. Its features will be a screen that uses OLED technology, wireless charging, a 3D camera that can be utilized for augmented reality and facial recognition, and an edge to edge screen.

However, these features are not really that new in the smartphone industry. Apple’s rival, Samsung has recently released the Galaxy S8 at $749, which already has the features that Apple is currently planning.

Since the Samsung Galaxy S8’s release, it has eaten quite a chunk of Apple’s market share. But if that is the case, why would Apple put such a high price tag on its phone?

Reports have surfaced that Apple is having production issues with the iPhone 8 and launch date delay is a real possibility. In addition to that, the new OLED screens are more expensive than Apple’s prior LCD screens. The high demand, limited supply, and higher production cost are the likely culprits of the phone’s rumored hefty price.

Who’s Really Going to Buy a $1200-iPhone?

Apple will be at a significant disadvantage if they try to release the phone at such an insanely high price, according to reports. However, Apple has no shortage of loyal followers that are willing to pay almost any price for the company’s latest offering, guaranteeing the success of the product. In fact, Apple is betting that the iPhone 8 will break previous sales records which saw iPhone unit sales of 78.3 million, up 5 percent from the previous year.

Right now, there is no official price for the iPhone 8 and many analysts believe Apple will have a more reasonable pricing strategy for its buyers.