How the iPhone 16e might help Apple log record sales this year – Crypto News

At ₹59,900, the iPhone 16e is priced ₹20,000 below its sibling iPhone 16, but still sports the latest hardware and Apple Intelligence, making it a tempting choice for first-time iPhone buyers. Besides, its launch comes at a time when phone sales are typically dull, potentially creating excitement in the market and sparking purchases.

“The iPhone 16e features most of the latest flagship hardware and supports Apple’s generative AI suite. As the newest addition to the iPhone 16 lineup, it is designed primarily for young buyers who prefer the latest-generation iPhone over older models. This strategy positions Apple to drive higher revenue in India by encouraging consumers to adopt the newest devices rather than opting for discounted older models,” said Prabhu Ram, vice-president of industry research at market research firm CyberMedia Research.

According to analysts at market research firms International Data Corp. (IDC) India and Counterpoint Research, Apple sold nearly 12 million iPhones in India last year. According to Tarun Pathak, research director at Counterpoint and CyberMedia’s Ram, the relatively more affordable iPhone 16e is projected to give Apple a sales boost between April and September—a lean phase of phone sales before the annual festive season kicks off.

Also read | Apple marks record India, global quarterly revenues, driven by iPhone sales

Even though Apple sells far fewer units than market leaders Vivo and Samsung, its average selling price is nearly thrice the industry average. The launch of the iPhone 16e holds the potential to boost Apple’s earnings further in the smartphone market, where it already tops in revenue.

Navkendar Singh, associate vice-president at IDC India, said he expects Apple to sell 15 million units in India this year, up from last year’s 12 million. “Apple has a strong room for growth, and the festive period is likely going to see prices drop for the new iPhone 16e. This may help its case further, thus retaining Apple’s 2025 growth projection in India,” he said.

Two other industry experts tracking the smartphone market said on the condition of anonymity that Apple may sell 14 million iPhones in India this year. At 15 million, Apple will break into the top five among India’s largest phone sellers. According to market researchers, this will help Apple clock revenue of $11 billion from iPhone sales this year, up from last year’s $9 billion.

To be sure, this is not the first time that Apple has attempted to sell a cheaper iPhone. In March 2016, the company launched iPhone SE, its first ‘budget’ iPhone. Even at the time, the device was a clear step-down from Apple’s flagship smartphone, which carried a different design and significantly more features.

Also read | Tata Electronics restarts iPhone components facility in Hosur after fire; sales unlikely to be affected

The same was repeated in 2020 and 2022. However, the model’s success is arguable. Data from Counterpoint India accessed by Mint showed that while the iPhone SE’s 2022 model accounted for 16% of the company’s total worldwide smartphone sales three years ago, the same is only 1% today. In contrast, the iPhone 16e has the look and feel of some of Apple’s latest iPhones, and is feature-rich as well.

“It’s clear that buyers, even in India, don’t want an outdated experience, and are willing to pay more for a cutting-edge device,” Ram of CyberMedia Research said.

However, Navkendar Singh, associate vice-president at IDC India, called the iPhone 16e a “missed opportunity” in the near term.

“The biggest problem with the iPhone 16e is that it will not help Apple cut into a new category of smartphone users in the country. At an effective, post-discount pricing of around ₹40,000, this device could have been an alluring option for buyers looking for phones at around ₹25,000 to ₹30,000 due to the easy availability of financing. But, at nearly ₹60,000, the iPhone 16e is too expensive to bring in buyers from a lower bracket—and is repetitive of what Apple already sells in its own price range,” Singh said.

Also read | Apple’s iPhone 16 ignites record-breaking anticipation in India for festive quarter

In each of its past 11 quarterly earnings calls with analysts and investors, chief executive Tim Cook has said that Apple has set quarterly revenue records in India. Data from analysts accessed by Mint show that this could be the seventh year of double-digit growth figures for Apple in the country. Increasing localization of smartphone assemblies, rising zero-interest and 24-month instalment options, and the iPhone’s aspirational appeal have seen Apple becoming a key player in the Indian smartphone industry.

In fact, in the December quarter, multiple market researchers including Counterpoint and CyberMedia said that driven by festive season demand, Apple broke into India’s top-five brands for the first time. Analysts believe that the new ‘e’ variant of the iPhone can help with growth even further.

“Think of this more as Apple resetting its overall portfolio—no more outdated ‘SE’, or the small-screen ‘mini’ models of iPhones, which no one wants. With the ‘e’ variant, Apple seems to be offering a less expensive entry point to their phones for all buyers, which can only prove beneficial and urge more buyers to opt for an iPhone 16e, instead of an iPhone 15, right now,” said Pathak of Counterpoint India.

Also read | Mint Primer: Is the iPhone 16 launch really a seminal moment for generative AI?

As Apple becomes a bigger seller in India, it is also expanding its footprint and offerings. Mint reported on 1 February that Apple is doubling down on enterprise laptop sales in India, while the company is also expected to open four new physical retail outlets before the end of 2025. Its generative AI suite is also expected to launch in India soon, and a launch statement from Apple also confirmed that from April, 10 Indian languages will be available to select as a default option on iPhones in India.