It’s getting harder and harder to make your smartphone stand out from the crowd, even if you have one of the best phones out there. Everything from refresh rates to camera specs have become almost identical from one phone to the next, and if one device offers with a particularly smart device, it won’t be long before competing handsets change their brand.
That is the challenge facing Apple as we get closer to the possible release date of the iPhone 16 in September. Of course, from the sound of the iPhone 16 rumors, the biggest possible changes – a larger screen size for the iPhone 16 Pro models, new chipsets and Capture buttons for the each – it’s the kind of updates you’d expect to see, but not the kind. which make the heart beat faster.
But there’s one thing Apple could do with the iPhone 16 this fall that could set its new phones apart from the many other high-end models that came out this year — it could keep iPhone prices down. the new ones are similar to what Apple is charging. for current models.
2024: The year of the telephone price hike
Releasing a big signal in 2024 is a struggle with how much you can charge for it – the answer in most cases seems to be “more than we did for the last phones.” Samsung started this trend in January, when the Galaxy S24 Ultra cost an additional $100 to the starting price of the S23 Ultra, bringing the cost of the new phone to $1,299.
Shortly after, the OnePlus 12 arrived in the US, with a phone costing $799, another $100 price increase over its predecessor. Here, at least, the ongoing promotion allows you to lower the cost of the phone to $699, as long as you have a current device to sell.
Even flip phones — already among the most expensive devices you can buy — aren’t immune to price gouging. Samsung introduced the Galaxy Z Flip 6 and Galaxy Z Fold 6 this month with a price increase of $ 100 over the cost of their predecessors. That means the high-end phone now starts at a staggering $1,899.
We don’t know if the price hike is reserved for Google’s upcoming hardware event in August, where we expect to see the Pixel 9 phones debut. But at least one rumor points to possible high prices, at least for four different phones that Google may introduce. That would follow a $100 jump for the Pixel 8 and Pixel 8 Pro over their predecessors.
Apple has no priorities in this discussion, either. While it holds the same prices as three of the four iPhone 15 models released nearly a year ago, the iPhone 15 Pro Max’s starting price of $1,199 is $100 more than the iPhone 14 Pro What Max calls it.
What will Apple do with iPhone 16 prices?
These prices do not occur for unreasonable reasons. The cost of components used to assemble phones is rising, and in some cases, phone manufacturers have decided to pass those costs on to consumers, perhaps to preserve the profitability of their new devices.
It’s unclear whether the same cost pressures will be felt by Apple when it comes time to set the prices of the iPhone 16. Of course, we haven’t heard of an iPhone 16 price increase so far, but it’s kind of of information that usually comes out before a new phone announcement. As July turns into August, we’re about to see the rubber meet the road soon with iPhone 16 price rumors.
Of the four iPhone 16 models, the iPhone 16 Pro and iPhone 16 Pro Max appear to be the most likely to see higher prices, given the upgrades planned for those devices. We’re expecting phones with bigger screens, and the iPhone 16 Pro may get the improved telephoto lens that Apple brought to the iPhone 15 Pro Max – the only iPhone last year to face the increased price.
However, Apple has a lot of incentive to grab the phone with the iPhone 16 Pro prices. The negative impact of the iPhone 15 Pro Max price increase was offset by Samsung’s decision to raise the price of the Galaxy S24 Ultra a few months later – as a result, there is still a $200 price gap between the original devices offered by Apple and Apple. Samsung. That is important from a psychological point of view.
But more important to keep in mind is the $1,000 limit. Stay under it – even in dollars – and people have an easier time hitting the buy button than buying something that costs $1,099. You can imagine how that will affect Apple’s thinking as it looks at the $999 slot in its current lineup.
There is also a good argument to keep the iPhone 16 and iPhone 16 Pro at the same price of $799 and $899 as their predecessors. A big part of this year’s iPhone update cycle includes the new Apple Intelligence features coming to Apple’s phones this year, as Apple taps AI to boost its writing and imaging capabilities.
Apple Intelligence requires a phone with an A17 Pro chipset or later – meaning the iPhone 15 Pro models are the only iPhones available to support these features. If Apple’s Intelligence features prove to be tempting enough, you’d think people would be motivated to upgrade to the new iPhone. And it’s very easy to do it when the starting price of the iPhone 16 model is still $799.
Beating the Apple Tax
Apple has an unfair reputation for charging premium prices for its products compared to its rivals, called the Apple Tax. Now, imagine the reaction, when CEO Tim Cook took the stage at Apple’s 16th Apple event and told people that the company is not adding a single cent to the cost of its latest handsets. It’s the kind of stock market that extra money can’t buy.
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