Apple’s latest entry-level phone, the iPhone 16e is showing surprising strength in the world’s largest smartphone market, despite higher pricing and facing stiff competition.
Apple’s iPhone 16e is off to a strong start in China, with sales outpacing the iPhone SE (review) by a significant margin. According to IDC, the new entry-level iPhone saw 60% stronger sales in its opening three days compared to the iPhone SE released in 2022.
This success comes as something of a surprise as the iPhone 16e ($599/₹59,900) represents a substantial price increase over the $429 (₹43,900) iPhone SE it replaces. The phone also faces criticism for featuring only a single rear camera, limited base storage, and what some consider insufficient AI capabilities compared to competing devices.
Also Read: Apple iPhone 16e vs iPhone 16: Key Differences, Specs & Which One to Buy
Several factors appear to be driving the unexpected success of the 16e. With Apple discontinuing the iPhone SE line, the 16e now represents the lowest-cost entry point into Apple’s ecosystem. For loyal Apple users or those looking to switch from Android, it’s now the most affordable option.
The 16e’s refreshed design doesn’t immediately scream “cheap iPhone,” while delivering better battery life than the iPhone 16. With USB-C connectivity, Apple Intelligence support, and a vastly improved display, it’s great for everyday use.
The 16e’s design also seems to be resonating with image-conscious Chinese consumers. According to IDC analyst Bryan Ma, many consumers in China place significant emphasis on “face” — not wanting to be seen using a visibly lower-priced iPhone model. The 16e’s updated design helps mitigate this concern.
Additionally, enterprise customers may be contributing to the surge in orders, finding value in the device’s balance of performance and cost for business deployments.
Despite the 16e’s strong start, IDC analysts caution that it won’t be enough to reverse Apple’s broader challenges in the Chinese market. The firm still forecasts that Apple’s sales in China will decline by approximately 2% overall this year.
“The competition from Android will be even stronger, strengthened by the national China subsidies which will benefit Android significantly more than Apple,” explains Nabila Popal, IDC senior director.
The Chinese government has allocated 300 billion yuan (over $41 billion) in subsidies to stimulate consumer spending, with portions directed toward smartphone purchases. These subsidies have already boosted sales for domestic manufacturers like Xiaomi and Vivo.
Apple isn’t standing still in the face of these challenges. The company is working to bring its Apple Intelligence suite to Chinese consumers in April with iOS 18.4, which could help address one of the competitive gaps with AI-focused Android devices.
For now, the iPhone 16e’s surprising early performance offers a bright spot for Apple in a challenging Chinese market.
Also Read: iPhone 16e: Apple’s Affordable AI dream or Expensive Distraction?
While Chinese consumers have embraced the 16e notwithstanding its higher price point, it could be even more significant for Apple’s business in one of its most important growth markets.
IDC’s Bryan Ma projects that the 16e could account for as much as 20% of iPhone sales in India during the second half of 2025.
For Indian consumers looking to enter Apple’s ecosystem without the premium price of flagship models, the 16e offers a compelling balance of features and affordability. Though priced higher than the previous SE at $599 (₹59,900), it delivers a more modern design that aligns with India’s increasingly style-conscious smartphone buyers.
The 16e also shows promise for India’s booming corporate sector. As more Indian businesses adopt iOS for their mobile workforce, the 16e offers a cost-effective deployment option that still delivers core Apple security features and ecosystem benefits.
Unlike in China, where Apple faces declining sales and tough competition, the 16e’s positioning could help Apple expand its market share beyond urban centres into India’s Tier 2 and Tier 3 cities, where price sensitivity remains higher but aspiration for premium brands is growing.
The iPhone 16e’s strong early performance suggests that 16e may prove even more successful in India than in China’s intensely competitive smartphone market.
