iPhone 16e selling well in Europe but can't beat its cheaper siblings

AppleInsider

Europe welcomed the iPhone 16e into its top 10 sellers in March, but Apple's midtier offering appears to still not be cheap enough for the local market.

iPhone 16e debuts in Europe's top 10

Apple's new iPhone 16e secured a spot in Europe's top 10 smartphone rankings during its first full month on the market. But the midtier model underperformed compared to the company's earlier iPhone SE launches and may face headwinds from internal competition and economic pressures.

Launched at the end of February 2025, the iPhone 16e was the ninth best-selling smartphone in Europe in March, according to data from Counterpoint Research. It accounted for 8% of Apple's sales and 2% of total smartphone sales during the month.

In Western Europe, where Apple tends to perform more strongly, the iPhone 16e ranked seventh.

Both the iPhone SE 2022 and the iPhone SE 2020 reached higher positions on the bestseller chart. The iPhone SE 2022 and iPhone SE 2020 accounted for 12% and 19% of Apple's first-month sales respectively, compared to 8% for the iPhone 16e.

They also ranked higher overall, placing sixth and third across Europe in their launch months.

Pricing, competition, and economic pressures

One major difference this time is price. The iPhone 16e launched at $599, significantly higher than the $429 starting price of the iPhone SE 2022 and the $399 of the iPhone SE 2020.

That pricing strategy puts the iPhone 16e uncomfortably close to the base iPhone 15, which offers better specs and a more premium design. In some European markets, the two models are available at the same price, narrowing the perceived value gap and making the older flagship more attractive to consumers.

iPhone sales. Image credit: Counterpoint Research

This overlap has created internal competition that appears to be limiting the iPhone 16e's appeal. The iPhone 15 remained in Europe's top 10 for April, a signal that buyers are still favoring older premium models over Apple's newest midrange device.

At the same time, broader market conditions are unfavorable. Smartphone sales across Europe have slowed, and refurbished iPhones have become more available through carrier and third-party channels.

These lightly used devices often undercut midtier offerings while delivering flagship-level performance, shifting value-conscious buyers away from Apple's new budget tier.

A shift away from compact midrange iPhones

The iPhone 16e is Apple's first midtier phone to drop the iPhone SE branding, and its design reflects that departure. With a larger display and no Home button, it no longer resembles the older iPhone 8-style models that defined the iPhone SE line.

Apple's recent move signals a shift in its approach to budget devices. The company is effectively phasing out its older designs, instead opting to align the lineup to its more premium smartphones.

The iPhone 16e's performance in Europe could have wider implications. Apple often uses European markets to test pricing and segmentation strategies before deploying them in other regions facing similar economic constraints, such as parts of Asia and Latin America.

If the iPhone 16e continues to struggle against older flagships and refurbished models, Apple may need to rethink how it balances features, pricing, and brand identity for its lower-tier offerings in developing markets.

That might mean offering longer software support or design updates. Lowering production costs through component reuse and introducing more aggressive pricing or trade-in incentives could also help.



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thedba

Not surprised. In most of Europe "budget" rules. You really don't need latest and greatest to run WhatsApp. 

The US and Canada and maybe UK is where iPhone is competitive in terms of usage share.

Most of everywhere else in the world the Android OS devices are ubiquitous. 

nubus

thedba said:

Not surprised. In most of Europe "budget" rules.

Not so. The cost of the phone is far more visible in many parts of the EU for one reason: US is doing 2 year contracts.

In several EU countries the maximum is 6 months to make the market more transparent.
My current plan provides unlimited talk + 30 GB data across 29 countries for 9.65 USD/month - hotspot, 5G etc. included.

kiwimachead

Surprised they’re selling any mediocre 16e’s at all for that price.

williamlondon

kiwimachead said:

Surprised they’re selling any mediocre 16e’s at all for that price.

Yep, all those stupid customers don't have the amazing insights into tech you do obviously.

danox

It’s a very good deal for those on a budget, however notice as usual most people if they can they try to get the upper end iPhones which defies the logic of the analyst/financial wizards who keep saying Apple should cater to the lower end of the market for marketshare.

entropys

Price is a factor. And iPhone outside of the USA, Canada, Australia and NZ have never had commanding market share. Android was already there in non anglosphere countries with a competing product before Apple got serious about those markets, plus the different ways phones are sold there makes the buyer more sensitive to the price of the phone.

oh, and don’t market a phone as cheap when it’s not. Apple is not a budget brand.

But particularly price influences sales in slow economic times. It’s like a wise man once said, Apple has to remember that not all its friends are Larry Ellison.