The iPhone 16e, Apple's latest budget model, is gaining popularity with purchasers. New data from IDC analysts reveals strong initial demand. In its first weeks, the iPhone 16e has seen a significant jump in popularity compared to the 2022 iPhone SE model. Demand is up by 60% in that critical opening phase. This is a number Apple will take notice of.
China: Apple's Struggle Continues
The China market presents ongoing difficulties for Apple. This is a large arena for smartphone sales. IDC analysis shows that during the latest holiday shopping season, demand for iPhones and other Apple products in China fell by 11%. A total decrease in Apple demand is forecast by around 2% in China for 2025. Reasons for this decrease exist.
Analysts point to increasing competition from domestic Chinese smartphone makers. Chinese brands are strengthening. They benefit from government efforts to support homegrown tech industries. The iPhone 16e, while popular elsewhere, might be underperforming in China.
iPhone 16e: Pricier and Less Feature-Rich in China
The report indicates the iPhone 16e faces an uphill task in China. It is positioned more expensively than Chinese rivals. It may not have a superior feature set. Consider this: a single rear camera, potentially lower storage, and no groundbreaking AI functionality. Chinese consumers are increasingly feature-hungry and sophisticated. Local brands innovate rapidly. Apple might not be offering enough "wow" factor with the 16e to justify its premium price.
The iPhone 16e, as configured, does not offer revolutionary features to draw Chinese consumers from competitive local brands or Apple's high-end offerings.
Apple's Plan: Software as a Solution
Apple is aware of this challenge and reportedly focusing on software. The plan is to tailor software experience for the Chinese market. "Apple Intelligence" capabilities are expected for Chinese consumers in mid-2025. The expectation is these software enhancements will encourage consumers to choose iPhone. However, this software push is not a guaranteed success. Status and brand prestige are often paramount for Chinese buyers. They frequently choose top-of-the-line flagship phones over mid-range options, regardless of software features.
India: A Brighter Spot
There is positive news for Apple. The Indian market presents a more optimistic outlook. Pundits predict the iPhone 16e could be a major player in the latter half of 2025. It could account for up to 20% of overall iPhone sales in India. While China remains a concern, growing markets like India offer significant opportunities for Apple and the iPhone 16e in the future.
