Apple has launched the iPhone 16e, a new entry-level model in its iPhone 16 series, aimed at price-conscious consumers in markets like India and China. The phone, priced at Rs59,900, is nearly as powerful as the standard iPhone 16 but comes with a few trade-offs to keep costs down. Pre-orders begin this Friday, with sales commencing on February 28.
Performance and features: More power at a lower cost
The iPhone 16e is powered by the A18 chip, the same processor used in Apple’s flagship iPhone 16 lineup. It features a 6.1-inch OLED display, Face ID housed in a display notch, a customizable Action Button, and a USB-C port—first introduced with the iPhone 15. However, the biggest highlight of the iPhone 16e is Apple’s first-ever in-house cellular modem, marking a strategic shift away from reliance on Qualcomm’s 5G modems. Apple claims this new modem, paired with the A18 chip and iOS 18, delivers superior battery life.
The device comes with a 48MP single-lens camera instead of the dual-camera setup found on the standard iPhone 16. Additionally, it supports Apple Intelligence, making it the most affordable iPhone with AI capabilities.
Shifting strategies: Why Apple dropped the “SE” branding
Unlike previous budget-friendly models, Apple has moved away from branding the iPhone 16e as an “SE” model. The iPhone SE series has historically struggled to match the sales of mainstream iPhones, despite offering lower prices. By rebranding the device as part of the iPhone 16 series, Apple aims to make the 16e more appealing to consumers who may have previously overlooked the SE lineup.
Market data reveals that the third-generation iPhone SE underperformed compared to its predecessor, selling only 35.2 million units, significantly lower than the iPhone 13’s 137.4 million units. Apple appears to be shifting its approach to cater to consumers upgrading from older models like the iPhone XR and iPhone 11, rather than competing with mid-range Android devices.
Can the iPhone 16e succeed in India and Europe?
Apple has recently made significant inroads in India, becoming one of the top five smartphone brands in the country with a 9% market share in the last quarter of 2024. However, competition is fierce, with budget-conscious buyers often opting for premium second-hand models or flagship Android devices.
Meanwhile, in Europe, Apple needed a mid-range offering to replace older models like the iPhone 13, iPhone 14, and third-generation iPhone SE, which were phased out to comply with the EU’s USB-C mandate. With upcoming eco-design regulations set to take effect in June 2025, Apple appears to be aligning its strategy with evolving market demands.
Will the iPhone 16e find its audience?
While the iPhone 16e provides an affordable entry point into Apple’s ecosystem, its price remains higher than previous SE models, leading some analysts to question whether it can attract enough buyers. The growing trend of consumers opting for premium models through financing options may pose a challenge to the iPhone 16e’s success.
Nonetheless, with its competitive specs, Apple’s first-ever in-house modem, and a strategic repositioning away from the SE branding, the iPhone 16e has the potential to carve out its niche in the mid-range smartphone market.