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 vital iPhone gross sales, with Apple lately cracking the highest 5 distributors in India. Every week forward of the iPhone 16e’s launch, nevertheless, it’s unclear what impression the machine could 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 document 12 million shipments through the quarter, with 35% YoY development, per IDC. It’s anticipated to cross the 15 million milestone this 12 months.
But it surely wasn’t the iPhone SE or iPhone 14 that helped the Cupertino firm succeed within the South Asian market. Actually, the iPhone 15 and iPhone 13 have been the best shipped fashions, with a 6% share of total 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 total iPhone shipments in its launch 12 months, 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 line with IDC, iPhone SE shipments in India and globally declined to negligible quantity in 2023 and 2024. Neither 12 months noticed a brand new SE launch.
Navkendar Singh, affiliate vp at IDC India, tells TechCrunch that almost 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 resembling Vivo, Oppo, and Xiaomi have made nice strides out there. Nonetheless, the iPhone remains 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 units proceed to promote, the value distinction is probably not sufficient to justify selecting the iPhone 16e over, say, the iPhone 15 given the options the price range cellphone sacrifices.
What new options the 16e does supply is probably not substantial sufficient to draw new patrons, given the recognition of the equated month-to-month installment (EMI) choice, which permits customers to buy a excessive ticket merchandise by way of installment funds. Roughly half of consumers buying a premium handset in India ($400-700) choose to finance their units this manner.
“With EMI provides, the distinction in actual phrases would make many choose the iPhone 15 or 16 over the iPhone 16Ee” Singh mentioned.
Apple has expanded Apple Intelligence to a extra reasonably priced section with the iPhone 16e. This might assist the corporate drive extra Apple Providers revenues over time. Nonetheless, Apple Intelligence is presently in its infancy and within the U.S. and received’t arrive in India till April.
The 16e is Apple’s newest iPhone to be assembled in India — alongside the opposite iPhone 16 fashions. Nonetheless, native meeting isn’t more likely to impression the pricing — not less than within the brief time period.
Sanyam Chaurasia, a senior analyst at Canalys, believed that the iPhone 16e would possibly assist Apple entice prospects who would possibly in any other case decide up an iPhone 12 or 13 — each of that are nonetheless accessible by retail channels in India.
He added that youthful customers may also go for the iPhone 16e, quite than the older 15. “It’s a mannequin which serves a distinct segment viewers,” Chaurasia mentioned.
In contrast to different rising markets resembling Latin America and Southeast Asia, India shouldn’t be a telco-driven market the place carriers subsidize smartphones by bundling them with their plans. This makes the iPhone 16e a comparatively costly choice for Indian patrons.
The timing of launching the iPhone 16e additionally makes it much less engaging as this isn’t an improve season, which normally falls round Indian festivals within the later a part of the 12 months, Chaurasia mentioned.
“Apple is more likely to have reductions on the iPhone 16e through the festive season later this 12 months, however there would even be comparable reductions on the present iPhone fashions, making them much more engaging than this new mannequin,” he said.
