It seems that Apple is preparing users for higher iPhone prices. The unexpectedly high price of the iPhone 16e indicates a change in pricing strategy. Many were sure that this would be a new version of the iPhone SE for about the same price ($429). However, Apple introduced the iPhone 16e with a starting price of $599, positioning the device as an affordable version of the iPhone 16 ($799).
Image Source: Apple
This discrepancy in expectations, as PCMag writes, is due to the fact that rumors about the model have created misconceptions. However, the price of $599 corresponds to the characteristics of the device, which in many respects is close to the iPhone 16. In addition, the price is comparable with competitors – Samsung Galaxy S24 FE ($649) and Google Pixel 8a ($499).
The lack of a cheaper iPhone could indicate that the ground is being paved for an increase in the price of the iPhone 17, which is rumored to have a thinner body, a new camera, a proprietary C1 modem, an updated battery, and a processor. Such changes, experts believe, could lead to an overall increase in the average cost of an iPhone, especially given Trump’s tariffs.
It is worth mentioning that in recent years, Apple has rarely changed the prices of its devices. The iPhone 12-16 models started at $799, and the Pro Max went up in price from $1,000 to $1,200 only on the 15th and 16th models. The iPhone SE, since its debut in 2016, has also hardly changed its starting price – the increase from $400 to $429 is insignificant. This made the budget iPhone almost half the price of the standard model.
Apple could raise prices on other devices in the near future. The new base iPad is expected to go up from $349 to $449, and the iPad Air, which has been priced at $600 or more for several years, could also go up in price. If that happens, a price hike for the iPhone 17 would be all but inevitable.
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