iPhone 16e iPhone launched in 2007 for $499. How is $599 a budget phone?

[pw5a29]

Using the price from 2007 isn't a good example.

But yes, the 16e is not a budget phone like the SE, at least Apple doesn't want it that way.

 

[scorpio vega]

you ignore the fact that 2 year contracts were a thing in 2007 so almost no
One was buying an iPhone at the full price.

 

[scorpio vega]

And the original iPhone had a potato for a camera, very little storage and ram and a slow processor, no wireless charging, satalite conectivity, etc.​

Actually did its time, the original iPhone was quite powerful.

You can’t criticize a phone from nearly 20 years ago by today’s standards.

Bc the way we use our phone and our expectations have changed

 

[scorpio vega]

Apple Intelligence is not worth an additional $123 to anyone.

It’s not worth it TO YOU. and that’s valid.
But it is fine for me.

 

[harmonthe3rd]

But anything is going up in prices, specially housing, food, electricity, health care and other elementary things. And smartphones aren't anything special anymore, they all do the same, there is nobody standing out anymore. So believing you can add the inflation to your product is risky.

I think the 16e will not be a success, only way to make it successful is by sacrificing the more expensive iPhone models, because the big market is not into flagships anymore and people keep their money in their pockets. A real apple is becoming more valuable than some fancy smartphone.

I completely disagree. The big market is definitely in flagship phones. Both Apples and Samsungs flagship phones out sell their low end devices. To say smartphones are anything is somewhat ironic as the benefits of a smartphone have become a necessity rather than a desire. Most people use their phones as gps maps rather than paper maps. Most people use their phones to pay for gas, groceries, Ubers, flights, etc. Social media adds another factor to be considered. Photos also play a large roll in phones purchase choices. What you would buy separately 20 years ago, is combined into one devices. Not to mention the hide increase of texting and emails over that say timeframe. Today a cellphone let alone a smartphone is not only common place, but increasingly becoming a necessity.

 

[haydesigner]

You could buy it without the contract at 499. I bought one which I jailbroke and unlocked to use in Mexico.

You… had a jailbroken iPhone… in 2007???

 

[code-m]

But anything is going up in prices, specially housing, food, electricity, health care and other elementary things. And smartphones aren't anything special anymore, they all do the same, there is nobody standing out anymore. So believing you can add the inflation to your product is risky.

I think the 16e will not be a success, only way to make it successful is by sacrificing the more expensive iPhone models, because the big market is not into flagships anymore and people keep their money in their pockets. A real apple is becoming more valuable than some fancy smartphone.

Mobile contracts will love this as it’s the perfect phone to trade-in or up after 2 years. Offer this for free on a 24 month contract and Bob is your uncle.

 

[code-m]

I completely disagree. The big market is definitely in flagship phones. Both Apples and Samsungs flagship phones out sell their low end devices. To say smartphones are anything is somewhat ironic as the benefits of a smartphone have become a necessity rather than a desire. Most people use their phones as gps maps rather than paper maps. Most people use their phones to pay for gas, groceries, Ubers, flights, etc. Social media adds another factor to be considered. Photos also play a large roll in phones purchase choices. What you would buy separately 20 years ago, is combined into one devices. Not to mention the hide increase of texting and emails over that say timeframe. Today a cellphone let alone a smartphone is not only common place, but increasingly becoming a necessity.

At its retail price the 16e is a high tier budget phone, it has to factor in retail sales etc. if Apple prices it too low the second hand iPhone market will tank. Given that when a 18e is released this will drop in price.

 

[Slix]

The irony here with this pricing is that if they had not introduced this phone and instead just made a new color for the 16 that was appealing, I might have spent the extra $200 and bought that instead of this one that I'll likely get.

Waiting 5 years to upgrade and then getting an iPhone at less than the standard $799 starting price is a budget deal for me I suppose. 🤷‍♂️

 

[RMSR]

Given there is so much talk of inflation - the logical conclusion to make is that Apple is charging us less for the iphone 16/pro series (poor Apple).

Please correct this mistake and raise the price of iphone 17. Apple will achieve two things

1. Make people happy as they will not feel bad about paying less.

2. The 'E' version of 17 will feel cheaper.

Looks like people are clearly telling the company that the inflation adjusted price of iphone 16 is way too less.

 

[Sami13496]

Fun fact: In my country, the iPhone 16 (regular) starts at 869 €, while the iPhone 16e starts at 749 €. That doesn’t make much sense to me. I mean, I get that products are more expensive here than in the US, but the price difference between those models is $200 there—while here, it’s only 120 €? Feels a bit odd. Oh, and the iPhone 15 still starts at 749 € too.

 

[GuruZac]

I think the 16e is priced well when looking at specs vs 16. It has no DI, a single camera, no camera control button, 4-core GPU vs 5, but has the same processor, the same RAM, same display, longer battery life, the new Apple C1 modem, for $200 less than 16. It has much better specs than the outgoing SE and is negligibly more expensive all things considered. I just think Apple needs to bite the bullet and add at least 90Hz refresh on iPhone/e models. 60hz in 2025... come on Apple.

 

[Tyler O'Bannon]

Inflation, increased features and ASP. A 16E can do significantly more than the original iPhone.

 

[winxmac]

Remember when iPhone XR got bashed by tech reviewers and YouTube content creators?

I don't know why the iPhone 16e announcement/launch was rushed when it should have been revealed in March or April 2025 but despite the starting price of USD 599, it will definitely follow in the foot steps of iPhone XR, iPhone 11 as the best selling iPhone of 2025.

Also, remember the W1 chip which got replaced with H1 then H2 chip? That seems to be a possibility with the C1 chip, although they cannot rename it as M1 since that has been used by MacBooks and iPads and M7 was first used in iPhone 5s as motion co-processor.

 

[johannnn]

How does OP compare something to 2007 without mentioning inflation?

 

[rmn1644]

Wait till they discount it, it'll drop $99 when the 17 comes out and be under $500 in less than 18 months.

 

[gpat]

Remember when iPhone XR got bashed by tech reviewers and YouTube content creators?

No, I don't. I remember it being pretty well-received.

 

[ennisw]

iPhone launched in 2007 for $499.​

That's with two year contract. Unlocked version sold later was $400 more expensive.

iPhone 3GS was announced $199 on stage. But for a unlocked version, Apple charge $599 for 16GB model, and $699 for 32GB model, in 2009.

Then you can do the inflation math.

 

[ratspg]

iPhone 2G was $499 for 8GB version WITH A 2 YEAR CONTRACT. iPhone 3G was released for $199 with the same contract and a year later was sold for $499 without it. Which means the contract is equivalent to $400. It would put the iPhone 2G at $899, the same price as iPhone 16 Plus. Not adjusting for inflation.

I purchased the iPhone 2G 4GB version for $499 and it was without a required two year contract. From the Apple Store when it was released.

 

[ratspg]

You… had a jailbroken iPhone… in 2007???

Yup. I also had one. Unlocked and jailbroken. Was part of the original team that unlocked and jailbroke it. 2007 iPhone 2G 4GB version.

 

[saber32au]

The pre-GST price for the 16e in Australia is actually lower than the pre-sales tax price for the 16e in the U.S.

Sure what you've posted is technically correct...but does it matter?

Unless you can claim GST back (ie flying out of the country) you'll pay GST.

Likewise the vast majority of US folks won't purchase the phone without paying some sort of "point of sale" tax (noting there are exceptions such as Delware doesn't impose both sales nor local taxes on phone purchases).

 

[frogleader12]

The iphone 16e is basically just the XR but buffed.

the XR was like 25% less than the normal and this one is also 25% less than the normal


they both have 1 less camera (well the 16e's camera is much better)

its basically the XR 2 and i think for that its a decent price

 

[throAU]

18 years of inflation

re: the 16E

no magsafe

apple you dirty dirty marketing dogs. just the right $5 thing to not include to force upgrade

I mean, I get it, you want to push people to the 16 for an extra $400 Australian, but that lack of MagSafe is just.... nasty. otherwise it would be a pretty awesome phone.

 

[TracerAnalog]

I think iPhone 16E is every bit worth $599 at today's market value, but that's NOT a budget phone in our current day economy. A 16E mini at $499 is needed.

As others have pointed out: inflation. Also: the 512Gb version costs over $1000 if you add taxes and Apple care. Fun times!

 

[brofkand]

Inflation, BOM, etc has nothing to do with it. Apple charges what they charge because they've determined they'll sell enough of them at this price. BOM has nothing to do with retail price.