Photo credit: www.phonearena.com
Apple introduced the iPhone 16e in late February 2025, closer to the end of the first quarter. This move marks a significant shift, as the device replaces the previously existing iPhone SE line, which Apple chose to rebrand for several strategic reasons. One key aspect of this change is the modernized design of the iPhone 16e, which replaces the traditional Home button and Touch ID sensor with Face ID, offering an edge-to-edge OLED display in place of the older LCD technology.
The introduction of the iPhone 16e helped improve U.S. sales of lower-priced iPhone models in Q1
However, it is important to note that the iPhone 16e diverges from its siblings in the iPhone 16 series by utilizing Apple’s in-house C1 modem—this modem does not support the faster mmWave 5G technology. Despite the limitations of mmWave, which only functions effectively over shorter distances, the overall impact on users may be minimal for most consumers.
The debut of the iPhone 16e had a notable impact on sales of lower-priced iPhone models across the U.S. in the first quarter. According to a survey conducted by Consumer Intelligence Research Partners (CIRP), the iPhone 16e accounted for 7% of total iPhone unit sales in the U.S. during this period, despite being available for only part of the quarter. This represents a significant increase from the 5% attributed to the iPhone SE during the same period last year.
The overall performance of the iPhone 16 series has also been impressive, capturing 74% of total iPhone sales in the U.S. for Q1 2025. This is an improvement compared to the 68% share held by the iPhone 15 series in the previous year, highlighting the positive reception of the new lineup—which can largely be attributed to the addition of the iPhone 16e.
Yet, this success might come with certain trade-offs. The launch of the iPhone 16e appears to have shifted consumer focus away from the higher-end models. For instance, the iPhone 15 Pro and Pro Max previously made up 45% of U.S. iPhone sales in the first quarter of last year, while the iPhone 16 Pro and Pro Max only represented 38% of sales in the same quarter for 2025.
CIRP’s survey shows that the iPhone 16e name might have led U.S. consumers to buy lower-priced models in Q1
The base model of the iPhone 16 has also seen a significant boost, contributing 20% of sales in Q1 2026, a notable rise from the 14% share recorded by the iPhone 15 base model during the same quarter last year. The introduction of the iPhone 16e seems to have had a diminishing effect on the sales of older iPhone models—what CIRP defines as legacy models—accounting for 26% of sales in Q1 this year, down from 32% in Q1 2024.
Looking ahead, the question remains whether Apple will extend this new naming structure to future iterations, potentially introducing an iPhone 17e alongside the upcoming iPhone 17 lineup expected in September or February-March of next year.
In conclusion, the decision to rebrand the lower-cost device from the iPhone SE to the iPhone 16e appears to have been a strategic success for Apple in the U.S. market. This shift not only emphasizes a broader selection within the iPhone lineup but also positions the brand to appeal to cost-conscious consumers by adding more competitive pricing options. The evolution of the entry-level model enhances Apple’s overall market presence and caters to a diverse range of customer needs.
Source
www.phonearena.com