Most likely but they are also using a historic peak and adding a buffer on top. Based on the past 10 years, these peaks maybe happened two other times for a couple months. Most of the time it settles between 1.2 to 1.35. If they had to, i would have used the current rate without the buffer and price it at 849 cad. Or better, take the historic avg of the past 5 years. I always considered budget iPhones as used ones. This aint it. Its just another model in the lineup that squeezes more from the return on investment of the notch design and all the manufacturing investments they put into it but with AI. They could have saved all that money on this release by bumping up the RAM on the 15 and adding AI.It may have something to do with when prices are set.
The 16e launched this month and so far, the USD to CAD exchange rate has been in the $1 USD = $1.42 to $1.47 CAD range. Therefore, $599 USD (starting price of 16e in U.S.) would range from around $851 CAD to $881 CAD. Being above $850 CAD, they made the price $899 CAD.
Back in October when the new M4 Mac mini launched, the USD to CAD exchange rate was in the $1 USD = $1.35 to $1.39 CAD range. Therefore, $599 USD (starting price of M4 Mac mini in U.S.) would range from around $809 to $833 CAD. Being below $850 CAD, they made the price $799 CAD.
Just a theory.
Now compare it to median wages which have barely risen.
And the minimum wage which rose by 10 cents
Most likely but they are also using a historic peak and adding a buffer on top. Based on the past 10 years, these peaks maybe happened two other times for a couple months. Most of the time it settles between 1.2 to 1.35. If they had to, i would have used the current rate without the buffer and price it at 849 cad.
I get what you are saying but it still doesn't add up to me.Not necessarily a historic peak. Also, Apple can't guarantee where exchange rates will go. In the case of the 16e, they may have added a "buffer on top" because the converted price at the time was above $850 CAD (using my previous figures, somewhere between $851 CAD and $881 CAD depending on when price was set) so they went with $899 CAD.
In the case of the Mac mini, the converted price may have been below $850 CAD at the time (using my previous figures, somewhere between $809 CAD and $833 CAD depending on when the price was set) so they went with $799 CAD.
Had the exchange rate put the mini price above $850 CAD at the time (last October), it may have been priced at $899 CAD just as the 16e is. Conversely, had the exchange rate put the 16e price below $850 CAD at time (this month), it may have been priced at $799 CAD just like the mini. However, that wasn’t the case as demonstrated above.
As I said, this is just a theory on my part.
I get what you are saying but it still doesn't add up to me.
Mac mini Announcement date: October 29th. 2024
Xrate on Oct 29th = 1.38894
599.99 x 1.38894 = 833.35
They chose to go lower at 799.99 and without buffer while the Xrate was trending to go upwards. Even if they used the X rate from the month before, 1.35163 on Sept 29th, 799.99 would still be lower then 810.96, and without buffer.
16E announcement date: February 19th, 2025
Xrate on Feb 19th = 1.42096
599.99 x 1.42096 = 852.56
They chose to go substantially higher at 899.99 while the Xrate is trending to go downwards. A month prior on Jan 19th, Xrate was 1.44792. 599.99 x 1.44792 = 868.74. They are still way higher at 899.99.
I only use the month before rates as a guess. As the only thing we know is the announcement dates and those don't match either. If they used your logic, 16E would be 849.99 to 869.99, and if they used M4 Mini logic, most likely 769.99 to 799.99. Like you say, and I agree, all a theory based on speculation of course. Once the rate goes down to it's normal level, these will be a better buy for Canadians that shop in the US.
So yeah, up here, I feel it's a bit of a rip off for no reason. But ultimately, we will see how the sales go here. I'm guessing Apple will allow this sku to be heavily discounted if sales are mediocre or worse by carriers. Or it will hang around for 3-5 years like the SE without any or much changes and the MSRP will go down as well. Unless Apple chooses to refresh these every year as well, which would be interesting to see.
Sadly, the 12/13 minis where not successful in the market, so the people have spoken! And they have said: "We have no interest in a phone with less than a 6" screen, so don't even try!" For a 6" phone with any kind of decent feature set, $599 is now entry level. Deal with it. Don't blame Apple, blame the market.I think iPhone 16E is every bit worth $599 at today's market value, but that's NOT a budget phone in our current day economy. A 16E mini at $499 is needed.
What? Compare the prices of almost 20 years ago... LOL!I think iPhone 16E is every bit worth $599 at today's market value, but that's NOT a budget phone in our current day economy. A 16E mini at $499 is needed.
For all the discussions about inflation, most people seem to have forgotten that computers used to get more powerful and cost less every single year. At the very least, these two should cancel each other.
I also think that Apple should forgo their huge profit margins and have lower-priced hardware (including lower priced RAM and SSD upgrades) which they only sell every few years in order to get more users for their online services every year, which have much higher profit margins.
"Budget phone" is defined by the phone product mix. So yes the 16e is Apple's budget phone. It would not qualify as Xiaomi's budget phone.I think iPhone 16E is every bit worth $599 at today's market value, but that's NOT a budget phone in our current day economy. A 16E mini at $499 is needed.
And eggs should cost 50 cents per dozen, and a car should cost….I mean who are we really kidding here? There should only be 1 model of iPhone, at 2 sizes, and they should cost $600 and $700.
iPhone 16E is Apple's cheapest, base or entry iPhone. A budget premium phone if I was forced to use the term. But I would never call the lowest MSRP Mercedes a budget car or a budget Mercedes."Budget phone" is defined by the phone product mix. So yes the 16e is Apple's budget phone. It would not qualify as Xiaomi's budget phone.
You have it right. Apple doesn't cater to entry level any more. 16e is the entry level of a full line of phone so expensive you'll think twice before buying it and will go for the model above with all the bells and whistles. Good move from Apple but bad move too. Question is who will buy this 16e? Owners of an 11 like me who bought it new 799$ ? Don't think so.I think iPhone 16E is every bit worth $599 at today's market value, but that's NOT a budget phone in our current day economy. A 16E mini at $499 is needed.
Imma gunna go out on a limb and say Apple didn’t want to price the 16e at this price but was forced to due to potential tariffs that might be placed on components.
Ever heard of inflation?I think iPhone 16E is every bit worth $599 at today's market value, but that's NOT a budget phone in our current day economy. A 16E mini at $499 is needed.
Yes but that contract gave you unlimited text, calling, and data which was rare back then.$499 was for a 2 year contract.
despite requiring a contract, the original iPhone wasn't subsidized. That came with the 3G.you ignore the fact that 2 year contracts were a thing in 2007 so almost no
One was buying an iPhone at the full price.