The iPhone 16 has sparked a buying frenzy among consumers due to its increased specifications without a price hike. After its official launch on the website the day before yesterday, it was sold out within 10 minutes, with the most expensive version, the iPhone 16 Pro Max, selling out in seconds. This shows that Apple's pricing for the iPhone 16 is quite affordable and has achieved its intended effect. Although Apple didn't make more money directly from the iPhone 16, it can still earn more through other avenues.

One of the most obvious changes is that the iPhone 16 has further increased the price of battery replacement. The cost of replacing the battery on the iPhone 16 Pro Max is now 969 yuan, a significant increase from last year's maximum price of 809 yuan for iPhone 14/15 battery replacements, representing a hike of 160 yuan or 20%.

It is evident that Apple is making money by raising the prices of its after-sales services, which happen to be its most profitable business segment. Services now account for nearly 30% of Apple's revenue and contribute over half of its profits.

In addition to after-sales services, Apple's App Store is another significant source of profit. Users must pay to download apps, and Apple takes a cut from in-app purchases. Recent disputes between domestic internet companies and Apple have centered on this commission, which is also known as the 'Apple tax'.

These service revenues rely heavily on the user base generated by the iPhone, as the iPhone remains Apple's primary hardware product and contributes half of its hardware revenue. Compared to iPad and Mac users, iPhone users generate more active users for the App Store and are more willing to pay for apps and services. This is why Apple did not raise the price of the iPhone 16 despite increasing hardware costs.

Another reason for Apple not raising the price of the iPhone 16 is the lesson learned from previous price hikes. Before 2019, Apple attempted to position the iPhone as a luxury product by continuously increasing prices, leading to a decline in sales below 200 million units. The pricing of the iPhone 11 began to decline, and the iPhone 13 was priced as low as 5,199 yuan, helping push iPhone sales to a peak of 237 million units.

However, Apple later began to differentiate between iPhone users, with the standard versions of the iPhone 14 and 15 using older processors while the Pro versions featured the latest processors. This led to a decline in iPhone sales to 225 million units in 2023. Last year's iPhone 15 was criticized for lack of innovation, resulting in poor sales. In March, it was discounted by 1,500 yuan, and during the 618 shopping festival, it was discounted by 2,350 yuan, setting a record for the largest price drop in Apple's history.

While Apple has refrained from raising iPhone prices, domestic phone manufacturers face pressure to increase their prices due to the anticipated price hike of Qualcomm's new Snapdragon 8G4 chip. The chip is expected to increase in price by 20% to 1,700 yuan, making it comparable in cost to mid-to-low-end domestic phones. As a result, domestic phone manufacturers are likely to raise their prices.

If domestic phone manufacturers further increase their prices, it could drive more consumers towards Apple. Last year, domestic flagship phones fell below 4,000 yuan and attempted to reach the 6,000 yuan mark but failed. Now, pressured by Qualcomm, these phones are being forced to rise above 4,000 yuan again, leading consumers to prefer iPhones. This is a dilemma for domestic manufacturers, as they are dependent on external chip suppliers and do not have pricing power.

The fact that domestic phone manufacturers are being forced to raise prices by Qualcomm could inadvertently benefit Apple. With the affordable pricing of the iPhone 16, Apple may see a significant increase in sales. Moreover, even if iPhone 16 shipments fall short of expectations, Apple can rely on its profitable services business and resort to price wars. In recent years, price wars have become a powerful tool for Apple, with the company willing to reduce prices until consumers are enticed. In contrast, domestic phone manufacturers lack other profit sources and cannot engage in fierce price wars with Apple.