Apple’s latest offering, the iPhone 16e, has made its debut in India, targeting emerging markets with its relatively affordable pricing strategy. Assembled in India, the iPhone 16e is positioned as the most economical choice within the iPhone 16 series, priced from 59,900 Indian rupees (approximately $689) to $1,034. This model replaces both the iPhone SE and iPhone 14, aiming to capture a significant market share in a country where smartphone competition is fierce.
However, the timing of the iPhone 16e’s release presents challenges. The launch does not coincide with India’s traditional upgrade season, which aligns with festive occasions later in the year. This timing may impact its initial sales momentum, as consumers often anticipate discounts and promotions during the festive season. Experts suggest that Apple plans to offer discounts on the iPhone 16e during this period, but existing models are expected to see similar price reductions, potentially making them more appealing.
“Apple is likely to have discounts on the iPhone 16e during the festive season later this year, but there would also be similar discounts on the existing iPhone models, making them even more attractive than this new model,”
— Sanyam Chaurasia, a senior analyst at Canalys
The Dominance of Android and Competition
The Indian smartphone market remains dominated by Android devices, with an average price point of $259. Chinese brands such as Vivo, Oppo, and Xiaomi have carved out substantial market shares, offering competitive alternatives. Despite this, Apple has strategically ventured into more affordable segments with the introduction of the iPhone 16e, seeking to tap into the expanding premium handset market within India.
Financing options play a crucial role in consumer purchasing decisions in India. With approximately half of premium handset buyers opting for equated monthly installments (EMI), affordability becomes a key consideration. Analysts suggest that the price difference facilitated by EMI offers might sway consumers towards older models like the iPhone 15 or 16 instead of the new 16e.
“With EMI offers, the difference in real terms would make many prefer the iPhone 15 or 16 over the iPhone 16e”
— Singh
Unlike many other global markets, India does not operate as a telco-driven environment where carriers subsidize smartphones by bundling them with their plans. This factor places additional emphasis on upfront costs and financing options for consumers. Despite these hurdles, Apple remains optimistic about its prospects in India.
The tech giant anticipates crossing the 15 million milestone in shipments for the iPhone 16e this year. In 2024, India emerged as Apple’s fourth-largest market following impressive growth figures, with a record 12 million shipments during the quarter and a remarkable 35% year-over-year growth. This positions India behind only the U.S., China, and Japan in terms of market size for Apple.
What The Author Thinks
In my view, Apple’s strategy with the iPhone 16e is a calculated move to penetrate the competitive Indian market, where affordability and financing options are critical. While the timing may present challenges, especially with the festive season ahead, the lower price point for the iPhone 16e could help Apple tap into a wider audience. However, with similar discounts expected on older models, it remains to be seen if the iPhone 16e can carve out a niche amidst strong competition from Android brands.
