Apple’s next generation of iPhones, the iPhone 16 series, is due on September 20-which begs one inevitable question: how much will the iPhone 16 Pricing will be? With the rapidly developing smartphone market, and considering Apple is rumored to introduce some notable upgrades this year, we could see the price dynamics change this year.
Will the Price of iPhone 16 Increase?
Traditionally, Apple has come up with newer models of iPhones with advanced features and hardware improvements without increasing the retail prices. However, this time, the iPhone 16 series could be different for manifold reasons: one, the smartphone market is extremely competitive; two, supply chains may get disrupted; and three, the global economy is facing serious challenges.
In 2023 alone, the all-around manufacturing cost of an iPhone reached record highs that could be a little telling of what awaits the iPhone 16. Last year’s models of the iPhone 15 were reportedly more costly to produce than their predecessors. As for example, the manufacturing cost of the iPhone 15 Pro Max is estimated at $558 with Apple, up 12% compared to the predecessor model in the iPhone 14 Pro Max. Other iPhones in the iPhone 15 lineup also faced component cost hikes. For instance, it took $423 to manufacture the regular iPhone 15, up 16% compared to the iPhone 14. However, Apple did not pass on the inflated prices to consumers last year. With production costs continuing to rise, Apple may not be able to absorb these costs this time around and could raise the price of the iPhone 16 series.
Price Speculation: iPhone 16
The speculated hardware upgrades for the iPhone 16 also hype the rumor of a price increase. Among those speculated upgrades, one of the most important is the boost of RAM for the regular models of the iPhone 16: from 6GB to 8GB. That would give a reason for a higher price.
But this puts Apple in a difficult situation. On one hand, it also has to keep in mind the general economic situation in the world: an increase of the cost of living and the recent problems in Asia, where the sales of iPhones are weak. For example, in China, resellers of the iPhone 15 have been forced to increasingly use promotional discounts so that stock would be able to be moved, which would mean that this most recent generation of iPhones has failed to reach a level equal to that of previous models. Besides, the design is not going to be very different with the new iPhone 16; therefore, it would be difficult to justify to consumers if there is any price increase.
Production Shifts and Potential Cost Savings
For the first time, Apple has started volume production of the iPhone 16 Pro series in India in an effort to cut production costs. According to The Economic Times, this may cut the production cost as high as 10%. It remains to be seen how many of these would be passed on to the end customer. Taxes and rising component prices could keep the retail price unchanged.
Yet, Apple might also raise revenues without raising the base price of a standard iPhone 16 model. For example, Apple could dodge certain options in configurations, actually forcing customers to pay more. This is a strategy it has used with the iPhone 15 Pro Max, when it axed the 128GB tier and made the 256GB variant its new entry-level model, at $1,199, compared to the $999 charged for the 256GB iPhone 14 Pro Max.
What to Expect from iPhone 16 Launch
While we are waiting for confirmation, if the base pricing for the regular iPhone 16 does indeed hold at $799, it will, in fact, carry the same price as the 2020-released iPhone 12. Of course, anything can happen when it comes to Apple’s pricing decisions. The latest TrendForce report suggests that the Cupertino-based company is moving to sell both the iPhone 16 Pro and iPhone 16 Pro Max with a minimum storage capacity of 256GB, axing the 128GB storage option on the smaller Pro for the first time.
The iPhone 16 series is arriving very soon. New variants will be announced at an event aptly titled “It’s Glowtime,” by Apple on Monday, September 9. For more information on what to expect from the iPhone 16 and the iPhone 16 Pro, check out our iPhone 16 and iPhone 16 Pro roundups.
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