Apple’s glistening new iPhone lineup alone is enough to make you believe that the company’s best days are still ahead.
But the cleverest move for many may be purchasing last year’s hardware.
For the iPhone 16 family, Apple has reduced prices quietly to create a compelling value tier which significantly undercuts the new iPhone Air by hundreds – and puts real pressure on midrange Android rivals.
The iPhone 16 new prices
Its headline: Apple has dropped the price of the iPhone 16 to $699 (from $799) and the iPhone 16 Plus to $799 (from $899) at the Apple Store. At the budget-buzzing price of $599 is the serviceable iPhone 16e. The iPhone 16 Pro is still $999 and the iPhone 16 Pro Max is still $1,199 — but remember that the Pro Max now starts with 256GB of storage, in part justifying its higher price. In other words, at least some of the meaningful price cuts are on the base lineup, the 16 and 16 Plus.
These reductions aren’t just cosmetic. A $100 haircut on the mainstream models puts the iPhone 16 directly in the sweet spot for upgraders who are more concerned about solid performance, long battery life and Apple’s extended software support than the bleeding-edge perks of the year.
How it compares with iPhone 17 and Air
Apple’s new models start at $799 for the iPhone 17, $1,099 for the iPhone 17 Pro, $1,199 for the iPhone 17 Pro Max and $999 for its ultra-thin iPhone 17 Air. No Plus model this year. Apple also doubled the base storage on the iPhone 17, to 256GB; the iPhone 16 in comparison starts at 128GB, so there’s a trade-off of capacity for cash unless you buff 16 storage up (usually an additional $100 at Apple).
On the feature side, the iPhone 17 family is said to introduce 120 Hz displays across the board, a new A19 chip (A19 Pro for the higher tiers), brighter screens featuring Ceramic Shield 2, and big camera improvements.
The iPhone 17 Air gets Pro-class silicon but not the entire Pro camera stack, enabling Apple to land that $999 tag while also showing off a thinner build.
Put that in perspective: the $699 iPhone 16 is now $300 cheaper than the iPhone 17 Air and $100 below the entry-level iPhone 17. If you don’t want the 120 Hz panel, the newest chip, and the new camera tricks, the math leans heavily away from this model and towards last year’s.
Who should buy the iPhone 16 right now”
Whether you are trading in an iPhone 12 or an older iPhone, or virtually any aging Android phone, the iPhone 16’s price drop means that the cost-to-benefit ratio will yield a big jump in everyday speed, battery life and camera consistency without breaking the bank. It’s also a good choice for families who are working to consolidate on Apple services where budget control is important.
Consumer Intelligence Research Partners has concluded, time and again, that a lot of iPhone owners wait about three years before trading in their old phones for an upgrade. This now-discounted flagship-class model from almost exactly a year ago slots into that cycle nicely: You get multiple years of iOS updates, plus enough headroom for machine-intense apps, without paying the early-adopter tax.
There will still be a contingent of gamers, power users and mobile photographers who care about high-refresh screens, the latest silicon and the newest camera modules, and that throng will still flock to the iPhone 17 series. For everyone else, the new price of the iPhone 16 is the very definition of “good enough” becoming the price of entry.
Calculate how much storage you really need before you buy
The iPhone 17 begins at 256GB, while the iPhone 16 starts at 128GB, so the real comparison will depend on your storage requirements. If you’re going to upgrade the iPhone 16 to 256GB, the difference to the base iPhone 17 becomes smaller. That said, much of this local horsepower can be supplanted by photo library management and iCloud storage — something to consider in your total cost.
Also consider trade-ins. Apple and carriers also regularly provide aggressive credits on older iPhones. With the 16’s lower MSRP, a successful trade-in could bring your out-of-pocket cost down to budget-phone territory, while still keeping you on (mostly) flagship-grade hardware. Review Apple Store and carrier deals; terms differ and can swing the math more than spec sheets can.
Why Apple cuts last year’s prices
Traditionally Apple has sliced the rear-end of the prior generation by a $100 when new models land, a move that opens up the iPhone funnel without corrupting the flagship brand. Market researchers like Counterpoint Research have noticed that older-generation iPhones tend to make up a big chunk of the total sales in the first few quarters after a launch, particularly when carriers are including them in a good-looking monthly plan.
The twist this year is timing — by shining a light on the $999 iPhone 17 Air, Apple makes a halo device for design-forward shoppers, and the discounted iPhone 16 becomes the value recommendation as a default. It’s a one-two punch that keeps Apple in the conversation at both ends of the premium segment.
Bottom line
If the iPhone Air was of interest and not in the budget, the new iPhone 16’s new pricing is the spend that’s more logical. You’re sacrificing this year’s flashiest features, but you’re getting a proven, well-supported iPhone at a significantly lower price point. For a big swathe of buyers, that’s the sweet spot of an upgrade.