What Might iPhone 8 Cost?

Reports that Apple Inc. AAPL could charge $1,200 for the iPhone 8 may sound worrisome at first given the large price tag. But investors shouldn't be concerned, at least according to "Downtown" Josh Brown.

First thing to consider is the fact that very few consumers will pay $1,200 out of pocket for a new iPhone 8; it's subsidized by the mobile provider. Rather, consumers will end up spending around $300 on the phone, a more palatable figure for what is essentially a luxury product.

"When you look at iOS versus Android installs or usage rather, it tends to be concentrated in the cities and cosmopolitan areas and wealthy zip codes," Brown said. "That's who the consumer of this phone is and Apple doesn't try to hide that."

Also important to consider is the fact that a smartphone is more of a business, communication and entertainment tool, and less of an actual phone.

In the meantime, Apple's investors aren't worried as the stock closed higher by about 0.6 percent at $145.06 after it was trading in the red Monday morning.

Related Links:

The Secret Life Of 'Downtown' Josh Brown

Munster: Apple's Stock Will Go 'Much Higher'

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