IPhone 16e vs Older Models: Stiff Competition in India

Apple Launches iPhone 16e: A New Contender in India‘s Smartphone Market

On February 19, 2025, Apple introduced the iPhone 16e, a budget-amiable addition to its lineup that replaces both the iPhone SE and iPhone 14. This model is designed to appeal to emerging markets, especially India, where it aims to capture a larger share of the smartphone market.

India’s Growing Smartphone Market

India, the world’s second-largest smartphone market after China, has been pivotal in driving Apple’s sales.Recently, Apple has entered the top five smartphone vendors in India. Though, the impact of the iPhone 16e on this competitive landscape remains uncertain as its release approaches.

Record Shipments and Market Position

In 2024, India emerged as Apple’s fourth-largest market, following the U.S., China, and Japan, with a remarkable 12 million shipments recorded in a single quarter, reflecting a 35% year-over-year growth, according to IDC. Projections indicate that shipments could surpass 15 million this year.

Shifting Preferences Among Consumers

Interestingly, the iPhone SE and iPhone 14 did not significantly contribute to Apple’s success in india. Instead,the iPhone 15 and iPhone 13 were the top-selling models,capturing a 6% share of the overall smartphone market in the fourth quarter of 2024.

Image Credits: IDC, TechCrunch analysis

Declining Popularity of the iPhone SE

Despite Apple’s growth in India, the iPhone SE has seen a significant decline in shipments. The original iPhone SE (2020) accounted for 18% of total iPhone shipments at launch, but this figure dropped to just 6% for the iPhone SE (2022) two years later. In contrast, the iPhone 13 represented nearly 40% of shipments in 2022.

According to IDC, shipments of the iPhone SE have dwindled to negligible levels in both India and globally during 2023 and 2024, with no new SE models released in those years.

Image Credits: IDC, TechCrunch analysis

Competitive Landscape and Pricing Strategy

Android continues to dominate the Indian smartphone market, with an average device price of $259. Brands like Vivo, Oppo, and Xiaomi have made significant inroads. Nevertheless,the iPhone remains the leader in the $600+ segment,followed closely by Samsung Galaxy devices,indicating that Apple’s primary competition comes from its own models.

The iPhone 16e is priced starting at 59,900 Indian rupees (approximately $689), with higher configurations reaching up to $1,034. In comparison, the older iPhone 15 starts at $804, while the iPhone 16 is priced at $919.

In a market where older models still sell well, the price difference may not be compelling enough for consumers to choose the iPhone 16e over the iPhone 15, especially considering the features that the budget model lacks.

Financing Options and Consumer Behavior

The new features of the iPhone 16e may not be enticing enough to draw in new customers,particularly given the popularity of equated monthly installment (EMI) plans. Approximately half of premium smartphone buyers in India (priced between $400 and $700) opt for financing options.

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

Image Credits: IDC

Future Prospects and Market Dynamics

Apple’s introduction of the iPhone 16e marks a strategic move to penetrate a more affordable segment, potentially boosting its Apple Services revenue in the long run. Though, the rollout of Apple Intelligence, which is still in its early stages in the U.S., is not expected to reach India until April.

The iPhone 16e is also notable for being assembled in India, alongside other models in the iPhone 16 series.However, this local assembly is unlikely to influence pricing in the immediate future.

Sanyam Chaurasia, a senior analyst at canalys, suggested that the iPhone 16e could attract customers who might or else consider older models like the iPhone 12 or 13, which remain available in retail channels.

“It’s a model which serves a niche audience,” Chaurasia noted, emphasizing its appeal to younger consumers over the older iPhone 15.

Unlike other emerging markets, such as latin America and Southeast Asia, India does not have a telco-driven market where carriers subsidize smartphone purchases. This reality positions the iPhone 16e as a relatively expensive option for Indian consumers.

The timing of the iPhone 16e’s launch may also hinder its appeal, as it does not coincide with the typical upgrade season, which aligns with major Indian festivals later in the year.

“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,” Chaurasia concluded.

iPhone 16e: Will Apple’s New Strategy Conquer the India Smartphone Market? An Expert Weighs In

Time.news Editor: Today, we’re diving deep into Apple’s latest move in India with the launch of the iPhone 16e. To help us understand the implications, we’re joined by Rohan Mehra, a leading smartphone market analyst. Rohan, welcome!

Rohan Mehra: Thanks for having me.

Time.news Editor: Let’s start with the basics. Apple has launched the iPhone 16e, positioning it as a “budget-amiable” option to appeal to emerging markets, notably India. What’s your initial reaction?

Rohan Mehra: It’s a strategic play, no doubt. India is the world’s second-largest smartphone market, and Apple is clearly aiming for a bigger slice of the pie. They’re consolidating the iPhone SE and iPhone 14 lineups, hoping the 16e will resonate with a wider audience.However, the success of the iPhone 16e hinges on several factors, especially its pricing strategy and how well it addresses the specific needs of Indian consumers.

time.news Editor: India has been a growth market for Apple. the article mentions record shipments and a strong market position. Can you elaborate on that?

Rohan Mehra: Absolutely. In 2024, India became Apple’s fourth-largest market, with an impressive 12 million shipments in a single quarter, a 35% year-over-year growth. Projections indicate this could surpass 15 million this year. This growth positions India as a pivotal market for reinforcing Apple’s sales. However, it’s essential to note that past success doesn’t guarantee future performance.apple has had successful older models like the iPhone 13 and iPhone 15 in india.

Time.news Editor: The article also points out that the iPhone SE hasn’t been a huge success in India. Why is that, and how does the iPhone 16e aim to change things?

Rohan Mehra: That’s a crucial observation. The iPhone SE’s popularity declined significantly after the 2020 model. The subsequent iPhone SE (2022) only accounted for a small fraction of total iPhone shipments. The 16e is likely an attempt to address this. It’s not just about being “budget-friendly”; it’s about offering a compelling value proposition. Can it deliver enough features and performance at its price to sway consumers away from Android alternatives or even older iPhone models? That’s the question. The original iPhone SE (2020) accounted for 18% of total iPhone shipments at launch, which dropped to 6% for the 2022 version.

Time.news Editor: Let’s talk about the competitive landscape.Android dominates the Indian market, with brands like Vivo, Oppo, and Xiaomi making significant strides. How does the iPhone 16e fit into this picture?

Rohan Mehra: Android’s dominance is undeniable, especially considering the lower average device price in the Indian market. However, Apple leads the $600+ segment, followed by Samsung. This indicates that Apple’s primary competition often comes from within its own lineup.The iPhone 16e, priced starting at around $689, enters a crucial price bracket. Its success will depend on weather it can offer enough value to compete with both Android rivals and older iPhone models like the iPhone 15,which might be available at discounted prices.

Time.news Editor: The article highlights the popularity of EMI (equated monthly installment) plans in India. How does this influence purchasing decisions and the potential impact of the iPhone 16e?

Rohan Mehra: EMI plans are hugely vital in the Indian smartphone market. A large percentage of premium smartphone buyers in India opt for financing. The difference in monthly payments between the iPhone 16e and slightly pricier models like the iPhone 15 or 16 might not be significant enough to sway consumers towards the 16e, especially if they perceive the latter to be lacking in features.

Time.news Editor: The launch timing of the iPhone 16e is also discussed. It doesn’t coincide with the major festival season in India. Is this a disadvantage?

Rohan Mehra: It could be. The festive season is a peak shopping period in India. Launching closer to those times could have provided a significant boost. As Sanyam Chaurasia from Canalys notes,Apple might offer discounts on the iPhone 16e during the festive season,but similar discounts on existing iPhone models might make them even more appealing.

Time.news editor: what are the key takeaways for our readers? What should they consider before deciding on the iPhone 16e?

rohan Mehra: Here’s my advice:

Consider your budget: While the iPhone 16e is positioned as budget-friendly, carefully compare its price, especially with financing options, against other iPhones and Android alternatives.

Assess your needs: Evaluate which features are most important to you. Does the iPhone 16e offer enough to justify its price compared to older models or competitor brands?

Wait for reviews: See what independent reviews say about the iPhone 16e’s performance and features.

Be aware of timing: If you can wait until the festive season, you might find better deals not just on the iPhone 16e but also on other models.

Time.news Editor: Rohan, this has been incredibly insightful. Thanks for sharing your expertise with us!

Rohan Mehra: My pleasure!