As Apple prepares to unveil its latest iPhone 16 lineup on Monday, the spotlight is firmly fixed on pricing and the integration of artificial intelligence (AI). JPMorgan analyst Samik Chatterjee emphasizes that pricing will be a key indicator for investors, particularly for the high-end Pro models, which are expected to see price increases.
While the base iPhone 16 and Plus models are anticipated to retain their previous price tags of $799 and $899, respectively, the Pro models could see a significant bump. According to Chatterjee, Apple will adopt a staggered pricing approach, maintaining prices for the base and Plus models while increasing the cost of the Pro models to offset rising component costs, such as memory and the A18 processor chips. The iPhone 16 Pro Max could range from $1,199 to $1,299.
Chatterjee highlights that the launch is not solely about hardware upgrades. The release of Apple’s next-generation iOS 18 and its seamless integration with AI-driven features are equally crucial. The release timing is also significant. Chatterjee believes a launch before the first half of October would allow consumers to experience the features firsthand in stores before making purchasing decisions, potentially boosting sales during the holiday shopping season.
The iPhone 16 lineup is poised to be the first designated “AI iPhone,” according to Chatterjee, with AI capabilities anticipated to drive consumer interest and encourage upgrades. The introduction of AI could create new pricing dynamics, as Apple looks to pass through the increasing cost of components to consumers.
Investors will closely observe how Apple handles potential price increases, particularly as AI becomes a core feature. Pricing is expected to be a key focus for both users and investors at the upcoming product launch.
