Apple Inc. (AAPL) watcher, developer and podcaster John Gruber has come out with his estimate for the price of the highly anticipated iPhone 8 with an OLED screen. (See also: Three Companies the iPhone Killed.)

Gruber, who correctly predicted the gold version of the first Apple Watch would cost $9,999 or more and frequently interviews Apple executives on his podcast, cited supply constraints and a potentially massive demand for the new smartphone. As a result, he believes the high-end device, with a newly designed screen that takes up almost the entire front of the phone, will start at $1,200. Before Gruber’s estimate, the most common prediction was for a figure around $1,000.   

“It sounds to me like the OLED iPhone is a phone which Apple can't make 40 million of per quarter, at least not today. And if that's true, that means it should be more expensive. Not should in any moral sense, but simply because that's how the principle of supply and demand works. When supply is constrained and demand is high, prices go higher. The higher prices alleviate demand,” reasoned Gruber.

Podcaster Sees Major Price Hike 

The podcaster says $1,500 as a starting point for the iPhone 8 is “probably “way too high,” suggesting that “$1,200 is quite likely as the starting price, with the high-end model at $1,300 or $1,400.”

Three months back, analysts at UBS predicted the average selling price of the iPhone 8 at $692, around the entry-level model iPhone 7 at $649. Investment bank Goldman Sachs foresees the new phone costing more than $1,000 and providing a significant boost to Apple’s stock. Others including Fast Company and analysts Credit Suisse have also indicated that they expect a major price hike.

Additionally, rumors have been floating that Apple may release two more affordable phones alongside the redesigned iPhone, more similar to the iPhone 7 and 7 Plus with LCD screens.(See also: Companies That Got a Boost From Apple's iPhone.)

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