Apple iPhone 16e sees strong sales but struggles in China

Efe Udin

March 17, 2025

Apple’s iPhone 16e has exceeded expectations in its early sales performance despite initial skepticism over its price and limited upgrades. According to IDC, sales of the 16e were 60% higher in the first three days compared to the third-generation iPhone SE from 2022. This comes as a surprise, given that the 16e is significantly more expensive than its predecessor, launching at $599 instead of the SE’s $429 price point.

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Many observers questioned whether the 16e’s modest improvements — such as a redesigned chassis, a more modern display, and partial Apple Intelligence support — would justify its higher cost. The device retains a single – camera setup and lacks some of the top features found in Apple’s flagship models. However, early figures indicate that consumers are willing to pay the premium.

Filling the gap left by the iPhone SE

A key factor driving demand for the iPhone 16e is the lack of alternatives in Apple’s lineup. With the discontinuation of the iPhone SE, the 16e now serves as the cheapest iPhone available, making it the default choice for budget-conscious buyers who want to remain in the Apple ecosystem. Without a direct replacement for the SE, users looking for an affordable iOS device have little choice but to opt for the 16e or switch to Android.

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Enterprise adoption may also be playing a role in the 16e’s strong sales. Businesses often prioritize affordability and long-term software support when purchasing devices in bulk. The 16e, despite its price hike, still offers Apple’s ecosystem advantages while being cheaper than higher-end models, making it a potential favorite for corporate buyers.

Also, consumers upgrading from older devices, such as the iPhone SE (2022), may not view the price increase as a major obstacle. Many iPhone SE users tend to hold onto their devices for years before upgrading, meaning they are less affected by annual price fluctuations. For these buyers, the improvements in design and performance may be enough to justify the higher cost.

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Apple struggles in the Chinese market

While the iPhone 16e is off to a strong start globally, it is unlikely to help Apple regain market share in China. IDC forecasts that Apple’s sales in China will decline by 2% this year, despite the initial success of the 16e.

“The competition from Android will be even stronger, strengthened by the national China subsidies which will benefit Android significantly more than Apple,” said Nabila Popal, IDC’s senior director.

China’s government has been promoting local mobile phone brands through subsidies and incentives, making cheap Android phones more appealing to buyers. With Apple facing tough rivals like Huawei, Xiaomi, and Vivo, the iPhone 16e’s higher cost may hurt its sales in this busy market. The iPhone 16e has beaten early doubts, selling well at launch despite its steep price. The end of the SE line left shoppers with no low-cost iPhone choice, helping the 16e’s strong start. Yet, its future is unclear, mainly in big markets like China, where local brands keep growing.

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