The other day, Gruber had an excellent piece speculating on the pricing of the next iPhone (the one with no bezels and OLED screen which I will, from now on, refer to as the ‘iPhone Pro’) as well as an iPhone 7s and 7s Plus. It also spooked me a bit that This new phone I’ve been getting more and more excited about may be breaking the bank for me. Because of this, I got to thinking, and came up with my own pricing speculation based on nothing that Gruber didn’t already mention.

What if Apple, instead of bringing the iPhones 7 downmarket to lower prices, resulting in there being 6 iPhones on sale at the same time (!), dropped them entirely? The iPhone 7s could simply be an iPhone 7 with an A11 chip (think Apple Watch Series 1, had the new chip but otherwise had nothing else the Series 2 did). This could, potentially, result in something like this:

  • iPhone SE: $399 32GB/$499 128GB (where it has been)
  • iPhone 7s $599 32GB/$699 128GB/$799 256GB?1
  • iPhone 7s Plus $719/32GB/$819 128GB/$919 256GB?
  • iPhone Pro $899 64GB/$999 256GB

What does this pricing structure do?

  1. Simplifies the product line from 6 potential phones down to 4. In addition, it simplifies today’s product line where the 6s and 6s Plus look similar to the 7 and 7 Plus by making each model look unique.
  2. It brings down newer chips to lower price points. The 7s and 7s Plus price points I listed are $50 less than the current prices for the iPhones 7 and 7 Plus. That sounds like a small number, but it adds up for many.
  3. It gives Apple a phone to sell at every price point between $399 and $999. There are options for every budget!
  4. It makes the iPhone Pro not look quite as outrageously priced, especially compared to the higher storage options on the 7 Plus

I have absolutely no insider knowledge of what Apple is actually planning to do with their iPhone pricing this year, but this makes the most sense to me.2

  1. I wonder if Apple would even bother making 256 GB variations of the 7s and 7s Plus, but if I were betting on it, I would say yes. They don’t make a 256 GB iPad (5th generation) though, which would be my best comparison across product lines. 

  2. And it scares me less than Gruber’s pricing