iPhone 16e Solves a Key Pricing Issue in the iPhone Lineup

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iPhone 16e Solves a Key Pricing Issue in the iPhone Lineup

When 5G first arrived with the iPhone 12 series, Apple implemented a clever pricing strategy. The company advertised iPhones as starting at “$799,” but that price was only valid if you activated the device with one of the major US carriers at the time of purchase. Those looking for an unlocked version of the iPhone would actually find the entry price set at $829.

The iPhone 16e eliminates this frustrating additional charge.

Discount for iPhone Activation

Since the iPhone 12, this pricing approach has been applied to every entry-level iPhone, including the latest iPhone 16. Fortunately, it hasn’t affected the more expensive Pro models.

This pricing model has always been a source of irritation for me, as many people refer to the iPhone 16 as a “$799 phone,” even though a significant number of buyers end up paying more. If you activate your iPhone through Apple while on one of the major carriers, you can pay that price. Otherwise, that’s not the case.

Often, customers purchase their iPhones directly through their carriers. Even with a large carrier, the prices are often based on the full $829 cost.

Some might argue that a $30 difference isn’t significant, but it’s still an important point to consider.

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iPhone 16e Solves a Key Pricing Issue in the iPhone Lineup 2

Apple C1 Modem

When Apple launched the iPhone 12, they included mmWave 5G technology across the entire lineup, likely due to requests from carrier partners like Verizon.

5G mmWave is a more expensive technology typically excluded from budget devices, providing limited advantages primarily in high-density areas, such as stadiums. Even in busy cities like New York, a simple turn can cause you to lose connection to a mmWave tower.

Fortunately, Apple’s C1 modem does not support mmWave 5G, for various reasons. As a result, there’s no need for carrier subsidies to help with costs.

Regardless of which carrier you choose, you can buy the iPhone 16e at its listed price of $599—a unique offer since no other mainstream non-pro iPhone has been available at this price since 2020.

However, it’s worth noting that Apple’s forthcoming C2 modem is expected to support mmWave technology. Given Apple’s choice to limit mmWave functionality for iPhones outside the US, a variant without it will likely still be available.


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