Apple’s iPhone 16 lineup is shaking up buyer trends, with recent buyers favoring affordability and practicality over flashy upgrades.
In the last month or so, more buyers have been opting for value-focused options instead of splurging on premium models. Data from the 2024 holiday quarter shows that while new Pro models perform well, base and older iPhones are gaining popularity.
According to data from Consumer Intelligence Research Partners (CIRP) for the December 2024 quarter, the iPhone 16 models collectively held a 68% share of U.S. sales, slightly surpassing the 65% share of the iPhone 15 models in the previous year. However, a closer look reveals notable year-over-year shifts in model preferences.
Base models gain traction while Pro models dip
Apple’s practice of reusing processors from Pro models in subsequent base models is relatively recent. The strategy began with the iPhone 14 series in 2022, where the standard iPhone 14 models continued to use the A15 Bionic chip, while the iPhone 14 Pro models received the new A16 Bionic chip.
The trend continued with the iPhone 15 series in 2023, where the iPhone 15 and 15 Plus were equipped with the A16 Bionic chip, previously used in the iPhone 14 Pro models. However, with the iPhone 16 series, Apple introduced the A18 chip across all models, marking a departure from this recent approach.
Adding to the mix, the two-year-old iPhone 14 held 16% of sales in the December 2024 quarter, outperforming the iPhone 13’s 12% share in the prior year. The uptick shows the durability and longevity of older iPhones, which continue to appeal to users looking for value.
On the other hand, the high-end iPhone 16 Pro Max and 16 Pro accounted for 23% and 16% of sales, respectively. Combined, the Pro models captured 39% of sales — marking their lowest performance in the past five years for the December quarter.
In 2024, the iPhone 15 Pro Max alone captured 26% of sales, suggesting that some users may be holding off on upgrading to premium models.
Apple’s move to put the same A18 chip in every iPhone 16 model ties into its push to make Apple Intelligence available to everyone. Having the same chip across the board means all users get access to artificial intelligence features such as Writing Tools, photo retouching, summarized notifications, and email sorting.
It also makes life easier for app developers, since they don’t have to account for different levels of performance.
What is driving the shift?
CIRP seems surprised by the growing popularity of base iPhone models, but it’s part of an annual cycle. Early iPhone sales, from September through December, tend to skew toward Pro models as enthusiasts rush to get the latest premium features.
However, as the year progresses, non-Pro models consistently dominate sales for the remainder of the cycle. The recent sales shift is likely due to Apple’s decision to equip all iPhone 16 models with the same A18 chip, minimizing the performance gap that set Pro models apart in the 2023 holiday quarter.
While the Pro models have a titanium frame, ProMotion display technology, three cameras, and better battery life, for many people — including myself — the iPhone 16 is good enough.
Economic factors also come into play. At $799, the iPhone 16 provides great value with high performance, appealing to buyers who want the latest technology without breaking the bank. CIRP’s surprise may stem from focusing on historical Pro sales dominance, but the shift to value-conscious options is a well-established trend in Apple’s ecosystem.
