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Is It Cheaper to Buy the iPhone 16 Outright or Through a Carrier Plan?

Last updated: Nov 3, 2024 11:32 am UTC
By Lucy Bennett
Is It Cheaper to Buy the iPhone 16 Outright or Through a Carrier Plan?

The iPhone 16 and iPhone 16 Plus was officially launched in Australia on the 20th September.


Featuring a host of enhancements and the sweet taster of a $100 price drop, its introduction was met with much anticipation among tech-savvy Australian consumers eager to snap one up for themselves.

Is It Cheaper to Buy the iPhone 16 Outright or Through a Carrier Plan?

But now the dust has settled after its arrival on the market, and many people who haven’t yet bought one are starting to seriously entertain the idea of doing so.

For many, whether or not to buy one is not the issue. Rather, the dilemma boils down to should they purchase one outright or upgrade to a carrier incentive, such as the iPhone 16 plan offered by Vodafone.


Ultimately, this is a decision you will have to make for yourself. But, in this post, we’ll try to provide you with some guidance by weighing up the pros and cons of doing both.

iPhone 16 Features

The new iPhone 16 is seen by many tech experts as a significant upgrade to the iPhone 15 version. It is available in five eye-catching colours, including black, pink, teal, white and ultramarine (blue) and one of its big selling points is Apple Intelligence.


Running on a variation of the A18 chip, this software adds a suite of features that take being context-aware to the next level.

Essentially, it better equips Siri to perform requests by sourcing data from various apps on your phone, such as Mail and Messages, to provide you with more accurate and relevant responses. If you decide to opt-in, you will also be able to have access on your device to OpenAI’s ChatGPT-4o model.

The iPhone has also improved the quality of its photos and video messaging thanks to an upgraded 48MP ultra-wide camera, which gives you two separate optical-quality cameras in one application.


At the same time, the wireless connectivity has been given a bit of a boost, with the quicker Wi-Fi 7 being used as standard in the Pro and Pro Max models, and battery life has been extended, too.

Should I upgrade to iPhone 16?

Whenever a new iPhone comes out, there are always those diehard brand loyalists who want to upgrade to the top-of-the-range model with all the bells and whistles, as de rigueur.

However, if you are an existing customer and have been thinking of upgrading to an iPhone 16, then there are some factors you should consider.


Chief among them is what kind of phone you currently have. For instance, if you still use an iPhone 12 or lower, you’ll notice a significant difference in the functionality and useability of the latest model.

By contrast, if you have the iPhone 15 Pro Max, you might not notice as much of an improvement. There will still be one because that is the nature of upgrades. But whether that justifies the outlay to get it is something you will need to decide.


How Much is the New iPhone 16 in Australia?

The good news for those who want to buy a new iPhone 16 is that it is a little bit cheaper in Australia (but not necessarily elsewhere in the world) than the suite of iPhone 15 was last year. That said, it will still set you back around $1,399 for the standard model, whose base storage is 128GB.

If you would prefer to procure yourself the iPhone 16 Plus, you’ll have to fork out about $1,599 to get one, while the iPhone 16 Pro starts from a cool $1,799.


At the top of the range, the iPhone 16 Pro Max, which features 256 GB of base storage, is priced at around $2,149.

Is it Best to Buy the iPhone 16 Outright or Through a Carrier Plan?

This question is one only you can answer because it depends on your personal circumstances and preferences.

Overall, if you buy the iPhone 16 outright you are generally going to do this either at an Apple store or the retail outlet that sells tech. This will involve paying for the phone in full, at which point you will own the phone in its entirety. Once you have done this, you can purchase a SIM card from whichever provider you want and proceed to use the phone.


By contrast, if you decide to go with a carrier plan for a telco, you are typically going to be on a contract that bundles the phone, SIM card and, usually, a postpaid phone plan. This means you are essentially renting out the phone until you have paid it all off and are being billed for both your phone and data plan within one amount.

Generally, these plan options span either 12-, 24-, or 36-month contracts. While you will pay much less on a monthly basis, often $100, depending on your data allowance, you will be under contract.


As a result, you could face hefty charges for phone damage or if you want to break your contract. You might also find there are fewer phones to choose from, and you may be tied to a telco if the device is locked to a network.

Final Thought

Regardless of whether you choose to buy the phone outright or sign up for a carrier plan, the cost of the actual iPhone 16 will be the same.

The real difference between the two is that buying it outright enables you to own the phone immediately and gives you the freedom and flexibility to choose cheaper SIM-only phone plans if you so wish.

On the flip side, signing up for a telco plan locks you into a contract which you will have to be prepared to honour for the entire duration of it, or otherwise face financial penalties.

But it also gets you that sparkling new iPhone 16 much quicker and for a much cheaper initial outlay.


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