Apple has launched the iPhone 16e in India, positioning it as a budget-friendly alternative within its latest lineup. This model replaces both the iPhone SE and iPhone 14, targeting emerging markets like India, which is the world’s second-largest smartphone market.
In 2024, India became Apple’s fourth-largest market, following the U.S., China, and Japan, with a record 12 million shipments and 35% year-over-year growth, according to IDC. Despite this success, the iPhone 16e’s impact remains uncertain as older models, particularly the iPhone 15 and iPhone 13, dominate sales.
Data indicates that the iPhone SE has seen a significant decline in shipments. The iPhone SE (2020) accounted for 18% of iPhone shipments at launch, while the iPhone SE (2022) dropped to 6% two years later. In contrast, the iPhone 13 represented nearly 40% of shipments in 2022. IDC reports that iPhone SE shipments have dwindled to negligible levels in 2023 and 2024.
Android continues to lead in India’s smartphone market, with an average device priced at $259. Chinese brands like Vivo, Oppo, and Xiaomi have gained substantial market share. However, the iPhone remains the top contender in the $600+ segment, followed by Samsung.
The iPhone 16e starts at ₹59,900 (approximately $689), while the older iPhone 15 and iPhone 16 are priced higher at $804 and $919, respectively. This price gap may not sufficiently entice buyers, especially considering the features the new model sacrifices.
Many consumers prefer financing options available for premium devices, with around half of buyers in the $400-$700 range opting for equated monthly installments. This trend may lead to a preference for the iPhone 15 or 16 over the 16e.
Apple aims to capture a broader audience with the 16e, potentially increasing its services revenue. The model is assembled in India, but local assembly is unlikely to affect pricing in the short term. Analysts suggest the 16e could appeal to customers considering older models like the iPhone 12 or 13.
Unlike other emerging markets, India does not have a telco-driven model, making the iPhone 16e a relatively expensive choice. The timing of the launch is also less favorable, as it falls outside the typical upgrade season during Indian festivals.
Discounts on the iPhone 16e during the festive season may not be enough to make it more attractive than existing models, which are likely to see similar offers.
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