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

[webkit]

The 2025 equivalent of $499 dollars in 2007 is about $635 dollars today, so the 16E at $599 dollars is actually a savings of about $35 bucks to you. Taking inflation into account, you can look at it this way; Apple has refined its product and improved its technology and they still were able to drop their price to consumers by about 5.7%

This is before sales promotions and such as well, so one can do even better when rolling in promotional and bundle deals.

The U.S. CPI inflation calculator puts $499 in June 2007 dollars at over $760 in today's dollars. Additionally, the $499 price required a 2 year AT&T contract.

AT&T today is offering the 16e for as little as $215.64 ($5.99/month x 36 months) with unlimited plan. Adjusting for inflation, you can get the 16e (through AT&T) for less than 1/3rd of the launch price of the original iPhone (through AT&T) in 2007.

 

[webkit]

Should bring those back

They essentially still have them today. The difference is that while not a contract commitment, the "savings" is spread over two to three years which means you have to stick with the carrier for that time to get the full savings/incentive.

For example, AT&T is offering the 16e for as little as $215.64 ($5.99/month x 36 months) with unlimited plan.

 

[code-m]

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.

How so?

Wages have gone up, Materials cost have gone up, transportation has gone up, etc.

We can compare the cost of food, fuel, shelter and clothing compared to 10-20-30-40-50 years ago and prices have gone up or down depending on supply and demand.

iPhone 16e may not be a budget phone for you but to other it may, now weather it’s good value compared to other options is debatable.

 

[ThatsMeRight]

When the iPhone was announced in January 2007, the value of $382 then is equal to $599 today.

In other words, when taking into account inflation, it's actually roughly 25% cheaper in 2007 US dollars.

Not saying $599 is cheap. For a lot of people it's still a lot of money. At the same time, there's also a big group of people for whom it is affordable.

 

[asdfjkl;]

does Apple call it a "budget" model?
Name any Apple device that is considered a "budget device"

Base model Mac mini?

 

[tonykariotis]

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.

I bought the very first iPhone, it was $500 WITH a 2-year contract. So lets call that around $800-$900. Your complaint is misleading, its also been 20 years of inflation. $599 is cheap.

 

[scrapesleon]

No raise?? U.S. median household income in 2007 was around $50,233. In 2023, it was around $80,610. 2024 estimates are around $82,500.

Adjusting for inflation, $50,233 in January 2008 is around $75,600 in January 2025 dollars. $80,610 (2023) and $82,500 (2024 estimate) median incomes both increased MORE than inflation.

income increased more than the inflation rate??? be for real people wouldn't be complaining about prices now

 

[webkit]

income increased more than the inflation rate???

Based on U.S. government data, yes. Between 2007 and "today" (2023 and 2024 estimate), the median household income has increased more than the CPI rate of inflation over the same period.

be for real people wouldn't be complaining about prices now

People may be complaining because they are focusing on price increases and inflation in recent years but we are talking about 2007 versus "today" which is over the past 16-17 years during which time there were some years with very little or even negative (deflation) inflation.

 

[Certificate of Excellence]

Based on U.S. government data, yes. Between 2007 and "today" (2023 and 2024 estimate), the median household income has increased more than the CPI rate of inflation over the same period.




People may be complaining because they are focusing on price increases and inflation in recent years but we are talking about 2007 versus "today" which is over the past 16-17 years during which time there were some years with very little or even negative (deflation) inflation.

I think when folks get squeezed, it’s hard (myself included) to see the increase in value presented to the consumer by said widget maker over a long term trend. When your finances are getting squeezed amidst $5+ dozen eggs, tax hikes, reports of deep taxdollar misuse etc., objectivity can be hard to hold on to. Through that lense, it seems like it’s all doom and gloom & down hill when assuredly it is not.

I don’t agree with the premise of OPs thread but I 110% feel his frustration and understand how the recent pressure of “what bill do I not pay this month” can warp one’s economic outlook. Apple has done a solid job of continually bringing value at a lower cost to us in this regard.

It also definitely helps to drive down cost to the consumer by increasing market share and grow their customer base; Apple was able to successfully grow their market share between 2007 and 2025 by over 14% which again has culminated in lower prices, & greater value to us.

Fast nickel vs slow dime.

 

[ThatsMeRight]

I think when folks get squeezed, it’s hard (myself included) to see the increase in value presented to the consumer by said widget maker over a long term trend. When your finances are getting squeezed amidst $5+ dozen eggs, tax hikes, reports of deep taxdollar misuse etc., objectivity can be hard to hold on to. Through that lense, it seems like it’s all doom and gloom & down hill when assuredly it is not.

I don’t agree with the premise of OPs thread but I 110% feel his frustration and understand how the recent pressure of “what bill do I not pay this month” can warp one’s economic outlook. Apple has done a solid job of continually bringing value at a lower cost to us in this regard.

For many people it's a valid concern. At the same time, there are many, many, many people who also see the $5+ dozen eggs, tax hikes and higher prices, but at the same time they have a higher income than ever before. For those people, the feeling is more like: "****, prices have really increased a lot and are high... but still, I can afford it and I have more money left over at the end of the month than ever before."

So the feeling is valid - definitely if you're having trouble paying the bills... - but statistically for many people, purchasing power has increased.

 

[Parowdy]

Apple is a Premium brand (haven't seen that term being used here in a while).
There is no Premium brand in this world that sells "budget" stuff of any kind.

My guess is that people have become more disillusioned about how deceptive Apples marketing sometimes really is and how a fancy presentation once a year doesn’t make all the flaws and little oddities with their systems go away.
Also, since the Pro iPhone didn’t have a price increase in 8 YEARS(!!!) since the $999 iPhone X in 2017 slowly people accepted that iPhone is anything between an entry to a „high end“ device. Other brands are offering just as high quality hardware to similar prices and, for example, foldables, which are the new iPhone X.

 

[code-m]

I guess the better question one must ask is now that FaceID and OLED have finally trickled into the entry level iPhone, what innovation will the Pro models see to differentiate it.

When FaceID was introduced with iPhone X the regular model kept with TouchID, when the regular model went FaceID the SE stayed with TouchID, so I am curious to see where things may develop.

 

[Tunster]

$100 increase in 8 years is nothing.

When you’re denied features from that model that’s been made the second edition phone, it’s a costly increase.

I don’t remember Apple removing or downgrading any of the features from the iPhone 8 shell.

Apple have forced my hand and I’ve gone for the 16 Pro Max to replace my SE3.

 

[ILoveCalvinCool]

I used to be able to see three motion pictures for a nickel! Another nickel got me two sarsaparillas and an egg cream!

 

[webkit]

Apple have forced my hand and I’ve gone for the 16 Pro Max to replace my SE3.

Didn't you previously complain that you and other SE 3 users were "unloved" for your passion for smaller phones? You then turn around and buy the largest iPhone possible to replace your SE 3? Why didn't you get the 16 Pro instead of the Pro Max? If you wanted such a large phone, the 6.1" display 16e wouldn't have made sense regardless of its specs which were never going to be "Pro" level anyway.