On Wednesday, Apple introduced the iPhone 16e, a new model that replaces both the iPhone SE and iPhone 14 in their product lineup. The new device is positioned as the most affordable option within the iPhone 16 series, primarily targeting emerging markets like India.
India, recognized as the world’s second-largest smartphone market after China, has contributed significantly to Apple’s sales growth, with the company recently breaking into the top five smartphone vendors in the country. However, the anticipated impact of the iPhone 16e on this vital market remains uncertain ahead of its release.
In 2024, India became Apple’s fourth-largest market following the U.S., China, and Japan, achieving a record 12 million shipments during the quarter and showing a 35% year-over-year growth, as reported by IDC. It is anticipated to exceed the 15 million shipments milestone this year.
Despite Apple’s expansion in India, it was not the iPhone SE or iPhone 14 that drove the company’s success in the South Asian market. Instead, the iPhone 15 and iPhone 13 were the top-shipped models, accounting for a 6% share of the overall smartphone market in the fourth quarter.
As Apple extended its footprint in India, the iPhone SE witnessed a proportional decline. According to IDC data shared with TechCrunch, the iPhone SE (2020) accounted for 18% of overall iPhone shipments in its launch year, while the iPhone SE (2022) made up 6% of total shipments two years later. Conversely, the iPhone 13 represented nearly 40% of iPhone shipments in 2022.
IDC reported that iPhone SE shipments in India and globally have diminished to negligible volumes in 2023 and 2024. Neither year witnessed the release of a new SE model.
Navkendar Singh, associate vice president at IDC India, mentioned to TechCrunch that nearly two-thirds of iPhone volumes in India consist of previous-generation models.
Although Android holds dominance in India’s smartphone market, with an average smartphone price of $259, Chinese brands like Vivo, Oppo, and Xiaomi have made significant progress. Nevertheless, the iPhone remains the leader in the $600+ market segment, followed by Samsung Galaxy smartphones. Thus, Apple’s main competition appears to be among its iPhone models.
The iPhone 16e starts at 59,900 Indian rupees (approximately $689) and can reach up to $1,034. Comparatively, the older iPhone 15 starts at $804, and the iPhone 16 begins at $919.
In a market like India, where older devices continue to remain popular, the price difference may not be substantial enough to persuade consumers to choose the iPhone 16e over, for instance, the iPhone 15, given the sacrifices in features of the budget phone.
The new features offered by the iPhone 16e may not significantly attract new purchasers, especially with the popularity of equated monthly installment (EMI) options, which allow customers to purchase expensive devices through installment payments. Roughly half of customers buying premium handsets in India ($400-700) choose financing options.
According to Singh, with the availability of EMI offers, the real difference in terms may lead many to prefer the iPhone 15 or 16 over the iPhone 16e.
Apple aims to make Apple Intelligence more accessible with the iPhone 16e, potentially increasing Apple Services revenues over time. However, Apple Intelligence is currently in its early stages in the U.S. and is not anticipated to arrive in India until April.
The iPhone 16e is the latest model to be assembled in India, joining the other iPhone 16 models. However, local assembly is unlikely to affect pricing, at least in the short term.
Sanyam Chaurasia, a senior analyst at Canalys, expressed that the iPhone 16e might attract customers who might otherwise consider buying an iPhone 12 or 13, both of which remain available through retail channels in India. He added that younger consumers might choose the iPhone 16e over the older 15, describing it as a model that serves a niche audience.
Unlike other emerging markets such as Latin America and Southeast Asia, India is not characterized by telco-driven models where carriers subsidize smartphones through bundled plans, making the iPhone 16e relatively expensive for Indian consumers.
Chaurasia noted the timing of the iPhone 16e launch might render it less appealing as it does not coincide with an upgrade season, typically around Indian festivals in the latter part of the year. He mentioned Apple will likely offer discounts on the iPhone 16e during the festive season later this year, yet similar discounts on existing iPhone models could make them more appealing than the new release.
