On Wednesday, Apple unveiled the iPhone 16e. This model replaces both the iPhone SE and iPhone 14 in the company’s lineup. The new phone is the cheapest member of the iPhone 16 lineup and aims to emerging markets, including India.
The world’s second largest smartphone market (behind China) has driven significant iPhone sales, and Apple recently cracked India’s top five vendors. However, it is unclear how the device will affect this major market a week before the iPhone 16E release.
In 2024, India became Apple’s fourth largest market after the US, China and Japan, growing year-on-year at 35% per IDC, seeing a record 12 million cargo. It is expected to surpass the 15 million milestone this year.
However, it was not the iPhone SE or iPhone 14 that helped the Cupertino, California company to succeed in the South Asian market. In fact, the iPhone 15 and iPhone 13 were the highest shipping models, with a 6% share of the overall smartphone market in the fourth quarter.
Even as Apple expands in India, the iPhone SE has seen a proportional decline. iPhone SE (2020) accounted for 18% of overall iPhone shipments in the year of release, while iPhone SE (2022) accounted for 6% of total shipments in two years, and IDC data only shared with TechCrunch It’s been done. In contrast, the iPhone 13 accounted for almost 40% of iPhone shipments in 2022.
According to IDC, iPhone SE shipments in India and the amounts of negligible worldwide in 2023 and 2024. I didn’t see any new SE releases in either year.
Navkendar Singh, Associate Vice President of IDC India, told TechCrunch that almost two-thirds of India’s iPhone volumes come from previous generation models.
Android dominates the Indian smartphone market with an average smartphone of $259. Chinese brands such as Vivo, Oppo and Xiaomi have made great strides in the market. However, the iPhone is still the top dog in the market segment over $600, followed by the Samsung Galaxy smartphone. This essentially means that the iPhone’s biggest competitor is the other iPhone.
The iPhone 16E starts at INR 59,900 (~$689) and goes up to $1,034. In contrast, the older iPhone 15 starts at $804, and from the iPhone 16, it starts at $919.
In a market like India where older devices continue to sell, budget phones are at the expense of budgetary phones, it may not be enough to justify choosing the iPhone 16e. Both offline and online retailers often sell older models like the iPhone 15 at a lower price than Apple has set up to promote sales.
The new features offered by 16E may not be substantial enough to attract new buyers given the popularity of the Equated Monthly Installment (EMI) option, which allows users to purchase expensive ticket items via installments. Approximately half of customers ($400-$700) who purchase premium handsets in India have chosen to fund their devices this way.
“Due to the EMI offer, due to differences in actual terminology, many people will prefer the iPhone 15 or 16 over the iPhone 16EE,” says Singh.
Apple has expanded Apple Intelligence into a more affordable segment with the iPhone 16e. This helps businesses drive more revenue from Apple services over time. However, Apple Intelligence is currently in the US in its early stages and will not arrive in India until April.
The 16E is Apple’s latest iPhone that can be assembled in India alongside other iPhone 16 models. However, local assembly is unlikely to affect prices, at least in the short term.
Sanyam Chaurasia, senior analyst at Canalys, believed the iPhone 16e would help Apple attract customers who may pick up an iPhone 12 or 13.
He added that younger users may also opt for the iPhone 16e rather than the older 15.
Unlike other emerging markets such as Latin America and Southeast Asia, India is not a telecom-driven market where carriers subsidize smartphones by binding them to plans. This makes the iPhone 16E a relatively expensive option for Indian buyers.
The timing of launching your iPhone 16E is no longer attractive as this is not the upgrade season. This usually falls to Indian festivals later in the year, Chaurasia said.
“While Apple is likely to receive discounts on the iPhone 16E during the festive season later this year, existing iPhone models also offer similar discounts, making them even more appealing than this new model,” he said. .