Fact or fiction? The rumors behind the future iPhone

JPMorgan, the analyst has released a new lengthy report in which reveals breakdowns about the latest iPhone updates.

The ‘modest upgrade’ iPhone 7s models will reportedly use glass backs in addition to the radical OLED iPhone. It says the OLED display will be edge-to-edge horizontally on the iPhone 8, not vertically.

The analyst also claims that the iPhone 8 may come bundled with a free pair of wireless AirPods and predicts the total added cost to Apple of all the new technology inside the OLED iPhone.

JPMorgan’s success rate with Apple rumors is not a clean track record, and only recently claimed Apple would announce the new iPhone next month, so there may be room for some change in these predictions.

The report suggests that the iterative phones, being dubbed iPhone 7s and iPhone 7s Plus, will have some aesthetic changes compared to the iPhone 7 and iPhone 7 Plus.

This includes the transition from aluminium to 2.5D glass backs and the inclusion of wireless charging. KGI has previously made similar claims. JPMorgan says that the iPhone 8 will mesh stainless steel and glass but the 7s chassis will be composed of aluminum and glass; they will retain aluminum sides.

It also includes a diagram of the iPhone 8 design with the 5.85” display stretching edge-to-edge on the left and right with top and bottom bezels.

Other rumors have suggested the display will cover the entire face.

It isn’t clear how much faith to put in the drawings, whether they are just rough approximations or accurate dimensions. Obviously, the drawing of the interior component layout is very rough, it shows the 30% larger capacity L-shaped battery we have seen KGI also comment on.

The possibility of Apple including AirPods in the same box as the iPhone 8 is another suggestion from JPMorgan, which is a pretty big one as well(!) Given the high cost base of AirPods relative to EarPods, this seems the most unlikely, although there is always hope.

Another issue is supply; AirPods continue to face six-week shipping estimates on Apple.com and Apple would not want to bottleneck iPhone 8 supply because of the earphones accessory.

The report echoes other sources indicating that the iPhone 8 dual camera will feature optical image stabilization on both lenses, the addition of 3D sensing facial recognition, better speakers and enhanced waterproofing.

JPMorgan overall estimates that the new exterior and interior component upgrades for iPhone 8 will cost Apple an additional $75-$80 per unit. This is the bill of materials cost and doesn’t include a lot of factors like R&D or manufacturing.

It also doesn’t really shine much light on how much Apple plans to charge the end user for the new OLED iPhone, although arguably it sets a price floor of at least $75 above what Apple charges for iPhone 7 Plus.

I guess we will just have to wait and see…