Will the iPhone 16 be more expensive? This is what we expect

Aside from all the elaborate presentations about camera specs and battery capacity, one of the main questions that comes up with every new phone launch is: How much will it cost? With the iPhone 16 expected to be announced this fall, that question is being asked and speculated about.

Apple has unveiled its upcoming Apple Intelligence features that will be available on some of its newest devices, and also revealed new features coming this fall with iOS 18. As the company's premium devices become more sophisticated using AI and potentially higher-quality materials, iPhone fans are wondering if these advancements will come with a higher price tag.

Read more: iPhone 16: What we know about the release date, leaks and more

Despite improved features, the starting price of the base iPhone has remained constant over the past few years. Each base model between the iPhone 12 and 15 cost $799 when it was released in the US. The Pro devices also remained at $999 during that time.

Last year saw a price increase for the high-end iPhone 15 Pro Max, which sold for $1,199, $100 more than its predecessors. Apple eliminated the cheapest 128GB storage option and made 256GB the new (more expensive) base. The 15 Pro Max also features a periscope lens that offers 5x zoom, which isn't even available on the smaller 15 Pro.

Check this out: Latest iOS 18 rumor roundup: New designs, AI tricks

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With inflation driving up the prices of almost everything else and rumors suggesting parts for new iPhones are getting more expensive, it's questionable whether Apple can resist raising prices on its flagship phones. Here's what we've heard.

Components and cameras: culprits for the price increase of the iPhone 16

External factors such as higher production costs could potentially prompt Apple to raise prices for its upcoming lineup. According to Nikkei Asia, the estimated production cost of the iPhone 15 Pro Max was $558, a 12% increase over the 14 Pro Max. Component costs for other devices in the iPhone 15 lineup have also reportedly increased year-on-year: the 15 Pro by 8%, the Plus by 10%, and the standard model by 16%. Although Apple has not yet raised retail prices as a result, Nikkei Asia suggests it will do so, otherwise “the company's bottom line will ultimately suffer.”

Rumors of more expensive cameras on the iPhone 16 Pro and Pro Max also suggest that these devices could also have a higher price tag. According to Economic Daily, Apple could use higher-quality molded glass lenses to make its phones lighter and thinner and increase the optical zoom distance.

On the one hand, Apple may feel compelled to pass on rising costs to its customers. On the other hand, the higher cost of living is causing many consumers to tighten their belts, and Apple may not want to exclude potential candidates for phone upgrades.

Other rumors have suggested that prices are actually fall for the iPhone 16, according to a source, because Apple may change the manufacturing of its A17 Bionic chipsets to cut costs. These reduced manufacturing costs could potentially pass savings on to consumers, but that's speculation.

AI could also increase the price

It's possible that Apple will tout its upcoming Apple Intelligence features to justify a higher price for the iPhone 16 lineup. If you can do more with your phone, like use a smarter version of Siri and take advantage of AI-powered writing tools, the company may argue that you should pay more too.

Samsung, for example, introduced its own suite of AI features called Galaxy AI while also increasing the price of its high-end Galaxy S24 Ultra by $100 to $1,300. This could also be due to hardware and other software improvements, but AI was used as a big selling point for the expensive device.

Google's Pixel 9 lineup is also packed with Gemini AI features. While the latest Fold model hasn't gone up in price, the same can't be said for the standard Pixel 9, which is $100 more expensive than the Pixel 8. The base model Pixel 9 Pro remains at the same $1,000 price as last year's Pixel 8 Pro, but is a smaller device. If you want the bigger screen, you'll have to upgrade to the Pixel 9 Pro XL – and pay $100 more again.

All of this is to say that both hardware and software aspects play a role in pricing a phone, and Apple could argue that advances in both areas, and particularly in artificial intelligence, justify higher costs for customers.

What does all this mean for the prices of the iPhone 16?

With rising production costs and more advanced components, it's possible we'll see price increases on the upcoming iPhone lineup, although it's not clear by how much. Apple could also use AI advancements to justify a potential price increase, since you'll technically be able to do more with your phone.

But given the fierce competition with other AI and phone makers like Google and Samsung, it is equally plausible to assume that prices could stagnate to attract more customers – especially given the rapidly rising prices in other countries.

In the meantime, we'll keep you updated here with any new details ahead of Apple's highly anticipated iPhone 16 unveiling this fall.