Apple’s shiny new iPhone lineup may have stolen the spotlight, but the savviest play for many buyers is last year’s hardware. Apple has quietly lowered prices on the iPhone 16 family, creating a compelling value tier that undercuts the new iPhone Air by hundreds—and puts real pressure on midrange Android rivals.
The new iPhone 16 prices
Here’s the headline: Apple has reduced the iPhone 16 to $699 (down from $799) and the iPhone 16 Plus to $799 (down from $899) at the Apple Store. The iPhone 16e holds at a budget-friendly $599. The iPhone 16 Pro remains $999, while the iPhone 16 Pro Max stays at $1,199—but note that Pro Max starts at 256GB of storage, which partly explains its higher ticket. In short, the meaningful price cuts are on the standard 16 and 16 Plus.
These reductions aren’t just cosmetic. A $100 drop on the mainstream models moves the iPhone 16 squarely into the sweet spot for upgraders who care more about reliable performance, battery life, and Apple’s long software support than this year’s bleeding-edge perks.
How it stacks up against iPhone 17 and the Air
Apple’s new lineup starts at $799 for the iPhone 17, $1,099 for the iPhone 17 Pro, $1,199 for the iPhone 17 Pro Max, and $999 for the ultra-thin iPhone 17 Air. There’s no Plus model this year. Apple also doubled base storage on the iPhone 17 to 256GB; the iPhone 16 starts at 128GB, so you’re trading capacity for cash savings unless you bump 16 storage up (typically a $100 step at Apple).
Feature-wise, the iPhone 17 family brings 120 Hz displays across the lineup, a new A19 chip (A19 Pro for higher tiers), brighter screens with Ceramic Shield 2, and notable camera updates. The iPhone 17 Air shares Pro-class silicon but not the full Pro camera stack, helping Apple hit that $999 tag while showcasing a thinner build.
Put that in context: the iPhone 16 at $699 is now a full $300 below the iPhone 17 Air and $100 below the base iPhone 17. If you don’t need the 120 Hz panel, the latest chip, or the new camera tricks, the math leans heavily toward last year’s model.
Who should buy the iPhone 16 right now
If you’re upgrading from an iPhone 12 or earlier—or any aging Android device—the iPhone 16’s price drop delivers a substantial leap in everyday speed, battery stamina, and camera consistency without going four figures. It’s also a smart pick for families standardizing on Apple services where cost control matters.
Consumer Intelligence Research Partners has consistently found that many iPhone owners keep their devices for roughly three years before upgrading. A discounted flagship-class model from last year fits that cycle neatly: you get years of iOS updates and enough headroom for demanding apps without paying the early-adopter premium.
Gamers, power users, and mobile photographers who care about high-refresh screens, the newest silicon, and the latest camera modules will still gravitate to the iPhone 17 series. For everyone else, the iPhone 16’s new price is the definition of “good enough” made affordable.
Do the storage math before you buy
Because the iPhone 17 starts at 256GB and the iPhone 16 at 128GB, the true comparison depends on your storage needs. If you plan to upgrade the iPhone 16 to 256GB, the gap to the base iPhone 17 narrows. That said, photo library management and iCloud storage can offset the need for local capacity for many users—something to factor into your total cost.
Also consider trade-ins. Apple and carriers routinely offer aggressive credits on prior iPhones. With the 16’s lower MSRP, a good trade could push your out-of-pocket cost into budget-phone territory while keeping you on flagship-grade hardware. Check the Apple Store and carrier promos; terms vary and can swing the calculus more than spec sheets do.
Why Apple lowers last year’s prices
Historically, Apple has trimmed the prior generation by about $100 when new models land, an approach that broadens the iPhone funnel without diluting the premium flagship brand. Market researchers such as Counterpoint Research have noted that older-generation iPhones often account for a significant share of sales in the quarters following a launch, especially as carriers bundle them into attractive monthly plans.
This year’s twist is strategic timing: by spotlighting the iPhone 17 Air at $999, Apple created a halo device for design-forward buyers, while the discounted iPhone 16 becomes the default recommendation for value seekers. It’s a one-two punch that keeps Apple present at both ends of the premium segment.
Bottom line
If the iPhone Air caught your eye but not your budget, the iPhone 16’s new pricing is the smarter spend. You’re giving up this year’s flashiest features, but you’re gaining a proven, well-supported iPhone at a meaningfully lower cost. For a large slice of buyers, that’s the upgrade sweet spot.