Chen cites his sources as "people briefed on the product, who asked to remain anonymous because they were not authorized to speak publicly."

"Wireless carriers help obscure the full cost of the device by offering a monthly financing plan," according to Wayne Lam, principal analyst at IHS Markit.

PetaPixel The high-end Iphone 8 will have all the bells and whistles Apple can cram into it -- an all-new design with everything from (according to the rumors) a big OLED screen, facial recognition and next-gen depth-sensing augmented reality.

And if Apple follows tradition, the previous year's models would stay in the line with a $100 price cut, with the entry-level iPhone SE bringing up the rear.

The customer gets a new phone instead of an IOU, Apple still makes a tidy profit -- and the iPhone 8 retains a lustworthy status as a specialty item.