On Wednesday, Apple unveiled the iPhone 16e. The mannequin replaces each the iPhone SE and iPhone 14 within the firm’s lineup. The brand new handset is the least costly member of the iPhone 16 lineup, aiming at rising markets, together with India.
The world’s second largest smartphone market (behind China) has fueled important iPhone gross sales, with Apple just lately cracking the highest 5 distributors in India. Per week forward of the iPhone 16e’s launch, nevertheless, it’s unclear what influence the machine may have on this key market.
In 2024, India grew to become the fourth largest marketplace for Apple, after the U.S., China, and Japan, seeing a file 12 million shipments through the quarter, with 35% YoY progress, per IDC. It’s anticipated to cross the 15 million milestone this yr.
But it surely wasn’t the iPhone SE or iPhone 14 that helped the Cupertino, California, firm succeed within the South Asian market. In truth, the iPhone 15 and iPhone 13 had been the best shipped fashions, with a 6% share of general smartphone market in This autumn.
Whilst Apple has expanded in India, the iPhone SE has seen a proportional decline. The iPhone SE (2020) represented 18% of general iPhone shipments in its launch yr, whereas the iPhone SE (2022) made up 6% of whole shipments two years later, per IDC information shared completely with TechCrunch. In distinction, the iPhone 13 made up almost 40% of iPhone shipments in 2022.
In keeping with IDC, iPhone SE shipments in India and globally declined to negligible quantity in 2023 and 2024. Neither yr noticed a brand new SE launch.
Navkendar Singh, affiliate vp at IDC India, tells TechCrunch that just about two-thirds of iPhone volumes in India come from previous-generation fashions.
Android dominates India’s smartphone market, with a mean smartphone of $259. Chinese language manufacturers corresponding to Vivo, Oppo, and Xiaomi have made nice strides available in the market. Nevertheless, the iPhone continues to be prime canine within the $600+ market section, adopted by Samsung Galaxy smartphones. This implies, in essence, that the iPhone’s greatest competitor is different iPhones.
The iPhone 16e begins at 59,900 Indian rupees (~$689) and goes as much as $1,034. In distinction, the older iPhone 15 begins at $804 and iPhone 16 at $919.
In a market like India, the place older gadgets proceed to promote, the worth distinction is probably not sufficient to justify selecting the iPhone 16e over, say, the iPhone 15, given the options the funds cellphone sacrifices. Retailers, each offline and on-line, additionally usually promote older fashions just like the iPhone 15 at decrease costs than those set by Apple to spice up gross sales.
What new options the 16e does provide is probably not substantial sufficient to draw new patrons, given the recognition of the equated month-to-month installment (EMI) possibility, which permits customers to buy a excessive ticket merchandise through installment funds. Roughly half of consumers buying a premium handset in India ($400-$700) decide to finance their gadgets this fashion.
“With EMI offers, the difference in real terms would make many prefer the iPhone 15 or 16 over the iPhone 16Ee,” Singh stated.
Apple has expanded Apple Intelligence to a extra reasonably priced section with the iPhone 16e. This might assist the corporate drive extra Apple Companies revenues over time. Nevertheless, Apple Intelligence is at present in its infancy and within the U.S. and gained’t arrive in India till April.
The 16e is Apple’s newest iPhone to be assembled in India — alongside the opposite iPhone 16 fashions. Nevertheless, native meeting isn’t more likely to influence the pricing, not less than within the quick time period.
Sanyam Chaurasia, a senior analyst at Canalys, believed that the iPhone 16e may assist Apple appeal to prospects who may in any other case choose up an iPhone 12 or 13 — each of that are nonetheless accessible by means of retail channels in India.
He added that youthful customers may additionally go for the iPhone 16e, slightly than the older 15. “It’s a model which serves a niche audience,” Chaurasia stated.
In contrast to different rising markets corresponding to Latin America and Southeast Asia, India just isn’t a telco-driven market the place carriers subsidize smartphones by bundling them with their plans. This makes the iPhone 16e a comparatively costly possibility for Indian patrons.
The timing of launching the iPhone 16e additionally makes it much less enticing, as this isn’t an improve season, which often falls round Indian festivals within the later a part of the yr, Chaurasia stated.
“Apple is likely to have discounts on the iPhone 16e during the festive season later this year, but there would also be similar discounts on the existing iPhone models, making them even more attractive than this new model,” he said.
