Apple generally isn't the first company that comes to mind when you think about restrained approaches to product pricing. But hopefully, that's about to change with the iPhone 16 when the new lineup of Apple phones arrives as soon as next month.
I'm not suggesting that the forthcoming iPhone 16 launch event is going to feature Tim Cook bounding on stage Crazy Eddie-style to announce that his prices are "insane" — Apple always has and always will charge a premium for its devices. But the iPhone 16 gives Apple a chance to do something very few of its rivals have done lately, and that's keep phone prices the same when introducing a new generation of flagships. And that, more than anything else, could make the iPhone 16 models stand out from the crowd.
Smartphone prices on the rise
Recently, Google took the wraps off its new Pixel 9 phones. There's a lot you can say about those devices, and we have in our Pixel 9 hands-on as well as our first look at the Pixel 9 Pro and Pixel 9 Pro XL. But in addition to all the positives you can bring up about AI features like Pixel Screenshots or the practical benefits of Gemini's capabilities, you also have to acknowledge that the latest Pixels cost more than they did last year.
That's pretty apparent with the Pixel 9, which has a starting price of $799 — $100 more than what the Pixel 8 cost when it debut and $200 more than 2022's Pixel 7. That's a shame, as it eliminates one of the big edges Google's entry-level device enjoyed over Apple and Samsung 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 Galaxy S24.
The Pixel 9 Pro's price hike is less apparent, since it costs the same $999 on paper as the Pixel 8 Pro. But there's a big Pixel 9 Pro vs. Pixel 8 Pro difference — the screen on the newer phone is much more compact. In essence then, you're paying the same price for less phone. If you want a big screen, you'll need to pony up $1,099 for the Pixel 9 Pro XL.
Not that we should single out Google here. In the past year, we've seen Samsung hike the price of both the Galaxy Z Fold 6 and Galaxy Z Flip 6 by $100 over their respective predecessors. The Galaxy S24 Ultra got a $100 boost over the Galaxy S23 Ultra as well. Even OnePlus, another phone maker known for beating its bigger name rivals, raised the price of the OnePlus 12 over its predecessor, though it's fairly easy to take advantage of a trade-in offer that wipes out the extra $100 cost.
The bottom line is this: If you want to buy a new phone in 2024, chances are you'll be paying more than you would have for a comparable model in 2023. And that presents an opportunity to Apple when it comes to iPhone 16 pricing.
iPhone 16 price rumors
So how much are the new iPhones going to cost anyway? While rumors about Apple's upcoming phones have told us plenty about likely new addition such as the Capture button or potential improvements to the cameras, we haven't heard that much about pricing — at least until now.
Posted specs appeared on the X social media site courtesy of a leaker named Apple Hub, who includes estimated prices for the iPhone 16 lineup. For the most part, the leaker forecasts prices to match the equivalent iPhone 15 models — the iPhone 16 would start at $799 with the iPhone 16 Plus costing $899 and the iPhone 16 Pro Max retaining the $1,199 price Apple settled on for the iPhone 15 Pro Max. So far, so good.
But there's one missing model from that list. The iPhone 16 Pro is tipped to cost around $1,099, which would represent a $100 increase over the $999 starting price of the iPhone 15 Pro.
On the one hand, a price increase for the iPhone 16 Pro would fall in line with the rumored additions to Apple's smaller Pro model. We expect the iPhone 16 Pro to adopt 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 capable of a 5x optical zoom. Those additions meant a $100 increase for the iPhone 15 Pro Max's price, so you'd expect the iPhone 16 Pro to follow suit — and that's before you take into account the rumored increase in screen size for the new Pro.
Still, any price hike would push the iPhone 16 Pro over the psychologically significant $1,000 barrier. And that would essentially make half of Apple's new lineup a non-starter for people who balk at paying four figures for a new handset. Companies also like having a $999 option because it attracts a wider array of potential customers and gives them the extra headroom to decide that they're going to splurge on the even more premium model after all. Apple understands this psychology better than anyone, and I don't see the company giving up a proven approach to charge more for one particular model.
iPhone 16 price outlook
In other words, at least one rumor is pointing to a higher price for the iPhone 16 Pro. But I would wait for additional evidence that's happening before I assumed it was a fait accompli.
And honestly, that's what we're going to be on the lookout for in the closing weeks before Apple's inevitable iPhone announcement. With so many other details already in place, price is the one remaining iPhone 16 question we need to nail down. The answer could ultimately determine how successful a launch the iPhone 16 enjoys.
