July 2, 2016 update: Chinese shopping site Weibo has
posted prices for three iPhone 7 models, with storage tiers starting at
32GB -- twice the capacity of the current entry-level iPhone models. In
2014, Apple doubled the top two tiers of the iPhone from 32GB and 64GB
to 64GB and 128GB (and kept pricing the same). Earlier this year,
analyst firm Trendforce predicted that the iPhone 7 would support 256GB
of storage space, matching the iPad Pro and offering lots more room for
apps and videos.
In addition, Apple has been awarded a US patent
for a system that can force an iPhone into disabling video-recording
functions at concert venues. The system uses infrared signals to send
messages to your phone to tell it to shut down video recording. Apple's
patent illustration shows a phone at a concert with the words "recording
disabled" on screen. It's not known whether Apple plans to put the
patent into use, and it's highly unlikely that this technology will
appear in iOS 10 or the iPhone 7.
Editors' note: This story was originally posted on December 14, 2015 and has been updated regularly.
iPhone 7: All the rumors about the specs, design and features of Apple's 2016 iPhone
Announcement and release dates
According to Apple's traditional cadence, iPhone models always debut
in the fall. That changed on March 21, 2016, with the introduction of
the iPhone SE, a new model that combines the look of the iPhone 5S with the soul of the iPhone 6S.
That noted, the iPhone SE is a relatively minor, mid-cycle update that
brings little to the table in terms of design, features, or specs.
Given this, there remains a pervasive expectation that we'll see the
next major iPhone update, right on schedule, in the fall of 2016.
Design
For the past several years, Apple's iPhone updates have followed a
predictable cycle: major design changes in even-numbered years, followed
by "under the hood" tech upgrades that keep the same basic physical
chassis in odd-numbered "S phone" years. For 2016, then, a total
redesign is a near certainty -- possibly with some dramatic innovations.
However, the iPhone 7 may buck this trend. According to
Barclays analyst Mark Moskowitz, supply chain murmurs indicate that the
iPhone 7 won't have "any must-have form factor changes," suggesting that
we'll see only a few modest refinements and perhaps some newer internal
components. In this vein, MacRumors has suggested that the iPhone 7 will have a design that's "very similar" to that of the iPhone 6 and 6S, though without the antenna bands that run across the current generation.
Clearly, Cook's May interview with Jim Cramer was meant to dispel this theory.
Apple may introduce a third variant. According to tech blog site Mobipicker, the company has already begun production of its 2016 iPhone lineup.
The portfolio would include an iPhone 7, an iPhone 7 Plus -- and an
iPhone 7 Pro or Plus Premium. Apple device makers Foxconn and Pegatron
have reportedly bumped up staff to handle all three versions, reported
Mobipicker. We shall see.

Given the regularity with which folks drop phones in toilets and
other bodies of water, could Apple develop a water-resistant or
waterproof chassis? (By the way, here's what to do when it inevitably happens to you.) Other manufacturers have already gone there, of course: Samsung with the Galaxy S5, Sony with its Z5 Premium and Motorola with its entry-level Moto G. Still, the fact that Samsung did not make the Galaxy S6 waterproof suggests that it's not a critical feature for most consumers.
In recent months, multiple sources (of varying reliability) have reported that the iPhone 7 will be waterproof and dustproof. Business Insider
reports that Apple has filed for a new waterproofing-related patent.
Titled "Electronic Device with Hidden Connector," the application
suggests that ports could be covered with a "self-healing elastomer."
According to the patent description, iPhone ports equipped with this
technology would be covered with membranes, which could be penetrated by
a headphone or USB connector, for example, and which would seal back up
once the connector is withdrawn.
Building on this narrative, 9to5Mac reported
that Apple is developing a new set of Bluetooth earphones that could be
introduced simultaneously with the iPhone 7. The fruit of the company's
acquisition of Beats Electronics, the new earphones, potentially called "AirPods," are rumored to be completely wireless, similar to the Motorola Hint.

One of the most active categories of iPhone predictions involves the
home button. In June, analysts at Cowen and Company predicted that the
iPhone 7 would have a "Force Touch" home button. According to Business Insider's
coverage of the report, "Instead of a physical mechanism, Apple will
use its 'Force Touch' technology and a motor inside the iPhone to
provide the sensation that the button is being physically depressed."
Replacing the traditional, slightly concave iPhone button, a new home
button would sit flush with the front of the phone, and would capably
convey the sensation of pressing a button -- without an actual button.
As CNET reported earlier,
recent iPhone innovations -- specifically the pressure-sensitive 3D
Touch screen and increasing always-on hands-free functionality of Siri
-- have diminished the need for a physical home button altogether. Could
Apple unveil an iPhone without a physical home button?
That
would also allow the large top and bottom bezels to shrink, effectively
allowing Apple to squeeze a larger screen into the same size body. The
trick, of course, would be keeping the all-important Touch ID
fingerprint sensor somehow integrated into the device.
9to5mac.com reports that in 2015 Apple filed a patent for a transparent
fingerprint sensor embedded into a smartphone display. First published
in May 2015, the patent application outlines three sensor technologies,
including "ultrasonic imaging" that could be embedded into a display and
deliver greater accuracy than the current iPhone's Touch ID capacitive
sensor.