Josh Brown: The possible $1,200 price tag on the iPhone 8 fits Apple's demographic

Key Points
  • Apple watcher John Gruber tells CNBC he thinks the iPhone 8 may start at $1,200.
  • Josh Brown says iPhone consumers typically live in cities, cosmopolitan areas and wealthy ZIP codes. So, it fits Apple's demographic.
Apple iPhone 8 may cost $1,200: Report

It shouldn't come as a huge surprise that Apple's next high-end iPhone could cost more than a grand, money manager and popular blogger Josh Brown said Monday.

He spoke after Apple watcher and developer John Gruber told CNBC he thinks the entry-level version of Apple's iPhone 8 will start at $1,200, above the $1,000 figure rumored.

Brown, the writer of the widely read blog The Reformed Broker, said it's important to keep in mind that the iPhone is 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. That's who is the consumer of this phone," Brown said on CNBC's "Halftime Report."

The CEO of Ritholtz Wealth Management adds that very few people will actually pay that price upfront.

"They've turned it into a subscription product. Very few people walk into a store and write a check for $1,000 (or) $1,200," he said.

CNBC has reached out to Apple for comment.

Read the full report: iPhone 8 price may start at $1,200, says a developer and blogger who closely follows Apple

— CNBC's Todd Haselton contributed to this report.