With rumors making noise, Apple is almost prepared to introduce its highly awaited anniversary model, the iPhone 8 coming September. More recently, a new report is making rounds on the internet stating that the new model could be priced around $1200.

According to John Gruber, a podcaster and a writer, the upcoming iPhone 8 can be priced at $1200 for the 64 GB model, while it can be $1299 for the 256 GB model. This indicates the iPhone 8’s launch price will be way above the launch price for the iPhone 7. While there have been numerous reports indicating that the iPhone 8 may be priced at $1000, Gruber mentions that the flagship may start at $1200.

Gruber is a known name when it comes about Apple-related stories. He mentioned that the iPhone 8 will be priced high due to constrained supply and high demand that is again an outcome of the OLED supply issues.

Gruber also added that it sounds to him like the OLED iPhone is a smartphone which Apple can’t manufacture 40 million per quarter, at least in the short-term. And if that stands true, that indicates it should be expensive. It is applicable not in any moral sense, but because that’s the impact of supply and demand on a product price. When supply is limited with high demand, prices go higher.

The iPhone 7S Plus and 7S sound like exactly what you would anticipate from an S model year; same form elements as last year, with better components and a latest ‘A-series’ system on a chip. Clearly there exists no reason to anticipate the new model to cost less than iPhone 7 and 7 Plus. If Apple intends to price the new OLED iPhone Deluxe same as that of iPhone 7 models, then the shopkeepers will be forced to find a place to store 7S or 7S Plus models.

Additionally, Ming-Chi Kuo of KGI securities said that both the iPhone 7s Plus and iPhone 7s will boast LCD screens. However, the buyers have to wait till the phones launch. Expectations from new model are certainly high and the more features built, the easier a $1200 price would be to swallow.