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Mehul Das

The iPhone 16e gamble paid off—here’s why it’s a smash hit

The iPhone 16e gamble paid off—here’s why it’s a smash hit

Apple’s latest budget-friendly iPhone, the 16e, is proving to be a surprise success, especially in China, where the brand has been struggling to compete with local heavyweights like Xiaomi, Vivo, and Huawei. While Apple has been losing market share in the country, the iPhone 16e seems to be giving it a much-needed boost.

A report from International Data Corporation (IDC) reveals that the iPhone 16e had a 60 per cent stronger launch in China compared to the iPhone SE. However, this may not be enough to reverse Apple’s overall decline in the region, as sales are still expected to drop by two per cent this year.

A pricey yet only option for iPhone fans on a budget

One of the biggest reasons the iPhone 16e is doing well? Apple has left budget-conscious fans with no other choice. With the iPhone SE discontinued, the 16e is now the cheapest way to get into Apple’s ecosystem—unless users are willing to jump ship to Android. Yes, it’s $170 more expensive than the iPhone SE from 2022, and yes, it still only has one camera, but buyers don’t seem to mind.

For loyal Apple users, this phone is the best way to stay in the ecosystem without spending a fortune on a premium model. And while the price hike stings, people upgrading from much older devices likely don’t feel the pinch as much.

Strong among businesses

The iPhone 16e is also making waves among businesses, which might explain the sudden surge in orders. Companies looking for a reliable, secure, and relatively affordable iPhone for employees are finding the 16e to be a solid pick. It has a fresh design, a USB-C port, and a modern display, making it an appealing choice for corporate use.

Apple's India bet

Apple is also betting big on India, and the iPhone 16e is at the heart of its strategy. The company isn’t just selling the device in the country—it’s also manufacturing it locally, both for Indian buyers and for exports. With the iPhone SE out of the picture, the 16e now stands as Apple’s most affordable smartphone, priced at around ₹60,000. Unless buyers are ready to switch to Android, they don’t have many other options.

Will this be a hit for Apple?

Despite its early success, the iPhone 16e isn’t a magic fix for Apple’s struggles in China. The company saw an 11 per cent drop in iPhone sales during the festive season, but it appears to be clawing back lost ground. The 16e could also help Apple gain traction in other price-sensitive markets like India, where affordability plays a major role in buying decisions.

At ₹59,900 ($599), the iPhone 16e replaces the iPhone SE as Apple’s entry-level offering. It features the latest A18 chip (with a slightly scaled-down GPU), 8GB of RAM, a 48MP camera, an Action Button, and Apple Intelligence support. While Android phones at this price offer better hardware, Apple’s ecosystem loyalty is keeping fans from looking elsewhere.

The iPhone 16e might not completely turn things around for Apple, but it’s definitely keeping the brand in the game, proving that even an expensive ‘budget’ iPhone can still be a hit.

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