iPhone 16e in India: Facing Competition from Older Models

Apple Introduces the iPhone 16e, Targeting Emerging Markets

On Wednesday, Apple officially presented the iPhone 16e. This new model is designed to supersede both the iPhone SE and the iPhone 14 within the company’s current product range.

Positioned as the most affordable device in the iPhone 16 series, the 16e is specifically aimed at growing markets, with a particular focus on India.

India: A Key Market for iPhone Sales

India, the world’s second-largest smartphone market after China, has become increasingly important for Apple’s sales figures. Recently, Apple has broken into the top five smartphone vendors in India.

However, the impact of the iPhone 16e on this crucial market remains to be seen, even with its release just a week away.

Growth in India and the Popularity of Older Models

In 2024, India emerged as Apple’s fourth-largest market globally, following the U.S., China, and Japan. A record 12 million units were shipped during the quarter, representing a 35% year-over-year increase, according to data from IDC.

Projections indicate that this number is expected to surpass 15 million units this year.

Interestingly, the iPhone 15 and iPhone 13 were the most shipped models in the South Asian market, capturing a 6% share of the overall smartphone market in the fourth quarter.

Decline of the iPhone SE

The iPhone SE has experienced a decline in proportional sales as Apple’s presence in India has grown. The iPhone SE (2020) accounted for 18% of all iPhone shipments in its launch year.

Conversely, the iPhone SE (2022) comprised only 6% of total shipments two years later, as per IDC data exclusively provided to TechCrunch.

In contrast, the iPhone 13 represented nearly 40% of iPhone shipments in 2022.

IDC reports that iPhone SE shipments in both India and globally fell to insignificant levels in both 2023 and 2024, with no new SE models being released during either year.

Competition from Previous-Generation iPhones

Navkendar Singh, associate vice president at IDC India, revealed to TechCrunch that approximately two-thirds of iPhone sales in India are for previous-generation models.

While Android dominates the Indian smartphone market with an average price of $259, Apple maintains a leading position in the $600+ segment, followed by Samsung Galaxy smartphones.

This suggests that the iPhone’s primary competition often comes from other iPhones.

Pricing and Value Proposition

The iPhone 16e is priced starting at 59,900 Indian rupees (~$689), with prices reaching up to $1,034. For comparison, the older iPhone 15 begins at $804, and the iPhone 16 starts at $919.

In a price-sensitive market like India, the relatively small price difference may not be sufficient to persuade consumers to choose the iPhone 16e over the iPhone 15, considering the features sacrificed in the budget model.

Retailers frequently offer older models, such as the iPhone 15, at discounted prices to stimulate sales.

The Impact of Financing Options

The limited new features offered by the 16e may not be enough to attract new customers, particularly given the widespread availability of equated monthly installment (EMI) plans.

Approximately half of Indian customers purchasing premium handsets ($400-$700) utilize these financing options.

“With EMI offers, the difference in real terms would make many prefer the iPhone 15 or 16 over the iPhone 16Ee,” Singh explained.

Apple Intelligence and Local Assembly

Apple has extended Apple Intelligence to a more affordable price point with the iPhone 16e. This expansion could potentially drive increased revenue from Apple Services over time.

However, Apple Intelligence is currently in its initial stages and is only available in the U.S., with a planned launch in India in April.

The iPhone 16e is the latest iPhone to be assembled in India, alongside other iPhone 16 models. However, local assembly is not expected to significantly impact pricing in the near future.

Potential Niche Appeal

Sanyam Chaurasia, a senior analyst at Canalys, suggests that the iPhone 16e could attract customers who might otherwise consider an iPhone 12 or 13, both of which remain available through retail channels in India.

He also believes that younger users may favor the iPhone 16e over the older iPhone 15. “It’s a model which serves a niche audience,” Chaurasia stated.

Market Dynamics in India

Unlike other emerging markets, India’s smartphone market is not heavily reliant on telecommunications carriers subsidizing smartphones through bundled plans.

This makes the iPhone 16e a comparatively expensive option for Indian consumers.

The timing of the iPhone 16e’s launch is also unfavorable, as it falls outside the typical upgrade season, which coincides with Indian festivals later in the year, according to Chaurasia.

“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 concluded.