Apple Event 2024: Apple is preparing to launch its latest phones, including the iPhone 16, iPhone 16 Plus, iPhone 16 Pro, and iPhone 16 Pro Max on September 9 at its ‘Glowtime’ event. The upcoming iPhone 16 series is set to come with a fresh design, on-device generative AI capabilities and improved specifications. However, reports also suggest that the new AI features and upgraded hardware might lead to a price rise in India.
iPhone 16 Series: Price In India (Expected)
As per leaks, while the base iPhone 16 and iPhone 16 Plus may retain last year’s pricing, starting at Rs 79,900 and Rs 89,900 respectively, the Pro models could see a price hike of Rs 10,000. This would bring the starting price of the iPhone 16 Pro to Rs 1,44,900 and the iPhone 16 Pro Max to Rs 1,69,900. For comparison, the iPhone 15 Pro and Pro Max were launched in India at Rs 1,34,900 and Rs 1,59,900, respectively.
While multiple reports have suggested that Apple will manufacture the iPhone 16 Pro and iPhone 16 Pro Max models at Foxconn units in India for the first time, it is not expected to create a major difference in the pricing. A report from The Economic Times previously revealed that producing Pro models in India is expected to reduce costs for the iPhone manufacturer by 10 per cent. However, due to taxes and component costs, the retail price of the devices may remain the same.
According to industry experts, the potential price increase could be due to the inclusion of more sophisticated hardware to support the new AI features.
Speaking to Times Now tech, Tarun Pathak, research director at Counterpoint Research said that the speculation on the price hike could be due to a bump in hardware components required to support Apple intelligence.
"For example, DRAM. Also , the rollout of Apple Intelligence will involve an increase in R&D and capital expenditures to accommodate Apple Intelligence across the board," Pathak said.
Prabhu Ram, VP – Industry Research Group (IRG) at CyberMedia Research (CMR) said that with the upcoming iPhone generation poised to feature advanced hardware and AI enhancements, the iPhone 16 series is expected to incorporate more sophisticated components than its predecessors.
Coupled with rising production costs, this could lead to price increases, particularly in the Pro lineup. However, the exact extent of these increases remains uncertain. The current trend of premiumisation may provide Apple with the necessary momentum to pursue growth in a key market like India, while it will potentially aim to cushion the impact for consumers with affordability initiatives," Ram told Times Now tech.
However, Faisal Kawoosa, Chief Analyst at Techarc, thinks otherwise. Kawoosa said that considering the overall global economic sentiment, the prices of the latest iPhone models are expected to be similar to those of last year.
He mentioned that since the iPhone will be imported to India, the reduction in Basic Customs Duty (BCD) on mobile phones announced in the budget should help Apple contain prices in the country.
"Regarding the expected features and innovations, we do not anticipate a significant change in the design, so justifying a price increase might be difficult. While Apple Intelligence is likely to be introduced, it could be offered as a subscription service, with some features remaining free for all users," Kawoosa told Times Now Tech.
He speculated that Apple might provide a three or six-month free subscription initially, after which only certain features or usages would remain free.
While the Pro models have traditionally been manufactured in China due to its higher component quality and technical workforce, Apple seems satisfied with Foxconn's setup in India and confident in its ability to assemble the iPhone 16 Pro and Pro Max models this year.
I'm still not sure if the iPhone 16 series will be more expensive in India. We'll have to wait until Apple announces the prices next week.