A brand new report from a well known leaker on Weibo claims that Apple’s iPhone 16e is not promoting effectively. The leaker, who has supplied correct details about upcoming Apple merchandise prior to now, says that Apple’s effort to ship a lower-cost iPhone has been unsuccessful. Nonetheless, Apple reportedly plans to maneuver ahead with the iPhone 17e subsequent 12 months.
If we’re to take the report concerning the iPhone 16e at face worth, I do not assume it is indicative of a failed product. By design, the iPhone 16e is a distinct segment product designed for customers who care extra about an reasonably priced gadget than next-gen options. It is a solution to appeal to iPhone patrons who, have been it not for an reasonably priced iPhone tier, would possibly in any other case enterprise off and buy an Android. In different phrases, nobody assumed that the iPhone 16e was going to change into a runaway hit sales-wise. That wasn’t its objective.
That mentioned, earlier studies from extra credible sources have indicated that the iPhone 16e through the quarter of its launch accounted for 11% of all iPhone gross sales within the U.S. That is about on par with earlier iPhone SE releases. And although total iPhone 16e gross sales have gone down since, the gadget at this level has been available on the market for almost 9 months. Does this make the iPhone 16e a failure? Except we all know what Apple’s preliminary gross sales projections have been for the gadget, it is not possible for anybody to make that decision definitively.
The iPhone 17 could be attracting potential iPhone 16e patrons
Even when we assume that iPhone 16e gross sales are lackluster, it is essential to think about that the gadget is not precisely a carbon copy of the iPhone SE. Apple’s iPhone SE fashions provided a compact type issue, typically with older applied sciences. These units have been additionally priced beneath $500. The final iPhone SE mannequin, for example, began at $429.
The iPhone 16e, nevertheless, begins at $599. It is also larger than the iPhone SE. So, whereas it is actually essentially the most reasonably priced iPhone accessible right this moment, it isn’t precisely as wallet-friendly as its predecessors. Consequently, it is attainable that potential iPhone 16e patrons, upon seeing the sticker value, determined to spend just a little bit further and get the iPhone 17 as an alternative. So far, the Weibo put up additionally means that “demand for the iPhone 17 sequence continues to surge, with manufacturing orders persevering with to blow up.”
All in all, the principle takeaway right here may not be that the iPhone 16e is a flop, however relatively that the iPhone 17 has confirmed to be so extremely well-liked that it is consuming into iPhone 16e gross sales. Apple famously would not break down iPhone gross sales figures by mannequin sort, so we do not have an official solution to verify how sturdy or weak iPhone 16e gross sales are. What we do know, although, is that income from iPhone gross sales total have skyrocketed for the reason that launch of Apple’s iPhone 17 lineup. And if individuals are shopping for iPhones en masse, at a sure level, it would not matter to Apple which fashions they’re shopping for.
The iPhone 16e was a take a look at for Apple’s C1 modem
One closing factor value noting concerning the iPhone 16e is that Apple’s objective with the gadget wasn’t solely to draw cost-conscious iPhone patrons. Alongside that, the iPhone 16e was the primary iPhone to characteristic the corporate’s C1 modem. Apple has been making an attempt to wean itself off of Qualcomm’s modems for years resulting from royalty phrases that Apple views as unfair and oppressive. Recall that Apple even took Qualcomm to court docket over this just a few years again, earlier than the 2 firms in the end reached a settlement settlement.
The bigger level right here is that the iPhone 16e was a manner for Apple to check out its in-house designed modem on a distinct segment gadget earlier than introducing it on its flagship fashions. If there have been issues with mobile connectivity on the iPhone 16e, it would not have had a large influence on total iPhone gross sales. But when the iPhone 16e carried out in addition to, and even higher than, Qualcomm’s modem, it might present the required proof for Apple to proceed with its plan to slowly section out Qualcomm altogether.
Certainly, a current rumor claims that all of Apple’s iPhone 18 fashions will ship with the corporate’s C2 modem. One other rumor, in the meantime, claims that solely the iPhone 18 Professional will ship with the C2. Both manner, it is clear that Apple wanted the iPhone 16e to be one thing of a take a look at case earlier than launching a flagship iPhone mannequin with no Qualcomm modem. On this regard, one might make the case that the iPhone 16e has been a rousing success.
