Apple is generally not the first company that comes to mind when you think of conservative approaches to product pricing, but hopefully that will change with the iPhone 16, when the new range of Apple phones launches as early as next month.
I’m not suggesting that Tim Cook will jump on stage Crazy Eddie-style at the upcoming iPhone 16 launch event to proclaim that its pricing is “crazy” – Apple has always charged a premium for its devices and always will. But the iPhone 16 gives Apple a chance to do something that very few of its competitors have done recently, which is keep phone prices the same when launching a new generation of flagships. And that, more than anything else, could set the iPhone 16 models apart from the crowd.
Smartphone prices are rising
Google recently unveiled its new Pixel 9 phones. There’s a lot to say about these devices, and we’ve talked about them a lot in our hands-on with the Pixel 9 as well as our first look at the Pixel 9 Pro and Pixel 9 Pro XL. But for all the positives that can be said about AI features like Pixel Screenshots or the practical benefits of Gemini’s features, it’s also important to acknowledge that the latest Pixels cost more than last year’s.
That’s pretty evident with the Pixel 9, which has a starting price of $799 — $100 more than the Pixel 8 was priced at when it debuted, and $200 more than 2022’s Pixel 7. That’s a shame, because it loses one of the big advantages Google’s entry-level device had over Apple and Samsung’s flagships — you didn’t have to pay as much to get your hands on a Pixel. At $799, the Pixel 9 now costs as much as an iPhone 15 or a Galaxy S24.
The price increase on the Pixel 9 Pro is less obvious, as it costs the same $999 on paper as the Pixel 8 Pro. But there’s one big difference between the Pixel 9 Pro and the Pixel 8 Pro – the newer phone’s screen is much more compact, so you’re essentially paying the same price for a smaller phone. If you want a big screen, you’ll have to shell out $1,099 for the Pixel 9 Pro XL.
phone | Starting price | Increase compared to the predecessor |
Samsung Galaxy S24 Ultra | $1,299 | +100$ |
OnePlus 12 | $799 | +100$ |
Samsung Galaxy Z Fold 6 | 1.899€ | +100$ |
Samsung Galaxy Z Flip 6 | $1,099 | +100$ |
Google Pixels 9 | $799 | +100$ |
Google Pixel 9 Pro | 1,099 € | +$100 (compared to Pixel 8 Pro) |
Not that we should single out Google here. Last year, Samsung increased the price of both the Galaxy Z Fold 6 and Galaxy Z Flip 6 by $100 over their respective predecessors. The Galaxy S24 Ultra also received a $100 premium over the Galaxy S23 Ultra. Even OnePlus, another phone maker known for beating its larger rivals, increased the price of the OnePlus 12 over its predecessor, though it’s pretty easy to take advantage of a trade-in offer that will offset the extra $100.
The bottom line is that anyone who wants to buy a new phone in 2024 will probably pay more than for a comparable model in 2023. And that is an opportunity for Apple in pricing the iPhone 16.
Price rumors for the iPhone 16
So how much will the new iPhones cost anyway? While rumors about Apple’s upcoming phones have told us a lot about likely new features like the record button or possible camera improvements, we haven’t heard much about pricing – at least not yet.
The released specs appeared on social media site X courtesy of a leaker called Apple Hub, which also includes estimated pricing for the iPhone 16 lineup. For the most part, the leaker predicts prices that will be in line with the equivalent iPhone 15 models – the iPhone 16 would start at $799, the iPhone 16 Plus would cost $899, and the iPhone 16 Pro Max would maintain the $1,199 price that Apple set for the iPhone 15 Pro Max. So far, so good.
However, there is one model missing from this list. The iPhone 16 Pro is expected to cost around $1,099, which is a $100 increase from the iPhone 15 Pro’s $999 starting price.
On one hand, a price increase for the iPhone 16 Pro would come in line with the rumored additions to Apple’s smaller Pro model. We expect the iPhone 16 Pro to inherit two features added to the iPhone 15 Pro Max a year ago – 256GB of storage in the base model and an improved tetraprism zoom lens with 5x optical zoom. These additions meant a $100 price increase for the iPhone 15 Pro Max, so it’s reasonable to expect the iPhone 16 Pro to follow suit – and that’s before you factor in the rumored increase in screen size for the new Pro.
Still, any price increase would push the iPhone 16 Pro over the psychologically significant $1,000 mark. And that would essentially make half of Apple’s new lineup a no-go for people who balk at paying four figures for a new handset. Companies also like to offer a $999 option because it attracts a wider range of potential customers and gives them more wiggle room to decide whether they’ll end up splurging on the even more premium model. Apple understands this psychology better than anyone, and I don’t see the company abandoning a tried-and-tested approach to charge more for a particular model.
Price outlook for the iPhone 16
In other words, at least one rumor suggests a higher price for the iPhone 16 Pro. But I would wait for more evidence before assuming that it is a fait accompli.
And honestly, that’s exactly what we’ll be looking for in the final weeks before Apple’s inevitable iPhone announcement. With so many other details already in place, price is the last iPhone 16 question we need to answer. The answer could ultimately determine how successful the iPhone 16 launch will be.