Apple is gearing up for the debut of its latest smartphones, including the iPhone 16, iPhone 16 Plus, iPhone 16 Pro, and iPhone 16 Pro Max. The launch event, named ‘Glowtime,’ is scheduled for September 9.
New Features and Design
The iPhone 16 series is anticipated to showcase a new design and enhanced specifications. Notably, the phones will feature on-device generative AI capabilities, offering improved performance and new functionalities.
Potential Price Increase
Reports indicate that the integration of new AI features and advanced hardware could result in a price increase for the iPhone 16 series in India.
Base Models Hold Steady, Pro Models May See a Rise
Speculations suggest that the base iPhone 16 and iPhone 16 Plus will maintain their starting prices from last year, with the iPhone 16 beginning at Rs 79,900 and the iPhone 16 Plus at Rs 89,900. However, the Pro models could experience a Rs 10,000 increase. The iPhone 16 Pro might start at Rs 1,44,900 and the iPhone 16 Pro Max at Rs 1,69,900, a notable jump from the iPhone 15 Pro models, which were priced at Rs 1,34,900 and Rs 1,59,900, respectively.
Manufacturing in India: Impact on Prices
Apple is reportedly set to manufacture the iPhone 16 Pro and iPhone 16 Pro Max at Foxconn’s India units for the first time. However, industry experts predict this shift won’t drastically alter the retail pricing in India due to taxes and component costs. Although manufacturing locally is expected to cut production costs by 10%, the savings may not significantly reflect in the final price consumers pay.
Reasons for the Potential Price Hike
The price hike is speculated to stem from upgraded hardware components necessary to support Apple’s new AI-driven features. Tarun Pathak, research director at Counterpoint Research, attributes the possible increase to the more advanced hardware, such as DRAM, required for Apple Intelligence, along with higher R&D and capital expenditures.
Prabhu Ram, VP of Industry Research at CyberMedia Research (CMR), further elaborated that the upcoming iPhone 16 series will feature sophisticated components and AI enhancements, likely driving up costs, particularly for the Pro models. Despite these potential increases, Ram suggests Apple will continue to focus on affordability initiatives for consumers.
Differing Opinions on Pricing
Faisal Kawoosa, Chief Analyst at Techarc, expressed a different view. He believes that, given the global economic climate, prices for the iPhone 16 models could remain consistent with last year’s. He also pointed out that reductions in Basic Customs Duty (BCD) on mobile phones in India might help Apple keep prices steady, especially since the devices will still be imported.
Kawoosa also noted that the design of the iPhone 16 is not expected to change significantly, making it harder to justify a price increase. He speculated that Apple Intelligence may be introduced as a subscription service, with some features remaining free, potentially offered with an initial three or six-month free trial.
Local Production and Apple’s Confidence
While Pro models have traditionally been made in China, Apple appears confident in Foxconn India’s capabilities to produce the iPhone 16 Pro and Pro Max this year. Whether this will affect pricing remains uncertain, but experts agree that production quality has been sufficiently high for Apple to consider the shift.
Ultimately, whether the iPhone 16 series will be more expensive in India remains to be seen, with official prices expected to be revealed by Apple next week.