Why Apple, Inc. Jacked Up iPhone 8 and 8 Plus Prices

Apple (NASDAQ: AAPL) is exercising its pricing power this year in a big way -- and in more ways than one. The most obvious example is the iPhone X and its $1,000 price tag, but the iPhone 8 and 8 Plus also received modest price bumps this year. Those devices now start at around $700 and $800, respectively, up from around $650 and $770, respectively, for last year's comparable models.

We already knew that the company was boosting the base storage configurations from 32 GB to 64 GB, but that only partially explains the bump, especially as the difference in costs for Apple is a few dollars for more storage. Bloomberg is now reporting more detail behind Apple's cost structure, citing an analysis from IHS Markit.

Image source: Apple.

Source: Fool.com