iPhone 16e success is a shift in Apple's upgrade tactics

Jump to First Reply
AppleInsiderAppleInsider
Posted:
in iPhone

The iPhone 16e is gaining traction, but its real success may be more about Apple's strategy than customer demand.

Three white smartphones with different camera setups are standing upright on a white surface against a blurred background with blue and purple lighting.
iPhone 16 family



Apple's iPhone 16e accounted for 11% of US iPhone sales last quarter, more than doubling the iPhone SE's share from the same period in 2024. The data comes from Consumer Intelligence Research Partners' June 2025 survey.

The survey marks the first full quarter since Apple replaced the iPhone SE with the iPhone 16e in February. The new model pulled demand away from older iPhone 15 and iPhone 14 models, shrinking the share of legacy iPhones from 28% in 2024 to 15%.

The iPhone 16e's early success could suggest Apple has finally landed on a more sustainable low-cost approach. But its share is still modest.

Nearly 9 in 10 buyers chose a different model, and there's a case to be made that many simply didn't have another budget-friendly option.

Unlike the older iPhone SE, which started lower, the iPhone 16e is more expensive with fewer premium features than the standard iPhone 16. Apple has often used older models for the low-end market.

Now, with legacy devices declining in sales, users are being encouraged to upgrade to newer, more expensive models.

iPhone 16 family remains dominant



Many buyers still prefer the latest full-featured models, even with the iPhone 16e offering a lower-cost entry point. The mainline iPhone 16 options include the standard, Plus, Pro, and Pro Max.

These continue to anchor Apple's lineup and appeal to users who want better cameras, larger displays, or premium materials. For most customers, the tradeoff between price and features still leans toward spending more.

The broader iPhone 16 lineup captured 74% of total US iPhone sales. That's up from 66% for the iPhone 15 family in the same quarter in 2024.

Bar chart comparing smartphone model sales percentages in June 2024 and June 2025, highlighting shifts in popularity among various models, with Consumer Intelligence Research Partners branding.
Breakdown of US iPhone sales by model for June 2025 vs. June 2024. Image credit: CIRP



Every model in the iPhone 16 series gained market share over its predecessor, except for the iPhone 16 Plus. Analysts at CIRP speculate Apple might discontinue the Plus model later in 2025 and replace it with the iPhone 17 Air.

Apple's move to retire older phones may help streamline software support and reduce fragmentation, but the benefits aren't evenly shared. Most of the upside goes to Apple.

With more people on newer devices, it becomes easier for the company to roll out features like Apple Intelligence. These features depend on recent chips and higher performance.

Premium sales still lead the way



Despite the iPhone 16e's momentum, Apple's top-tier models remain the most popular. The iPhone Pro and iPhone Pro Max continue to grow in market share, and there's little sign that an improved entry-level phone is eating into premium demand.

The iPhone 16e is still a stripped-down device, even with the latest processor. It lacks the display, camera, and build quality of more expensive models.

That makes it a good fit for users who want up-to-date software support without the bells and whistles. However, it's not likely to change Apple's overall revenue mix.

Looking ahead, a successor in the form of an iPhone 17e may arrive in early 2026. If that happens, Apple could push more users toward the latest hardware cycle.

But there's a tradeoff. With fewer truly affordable options, Apple's low end is starting to look a lot like its midrange.



Read on AppleInsider

Comments

  • Reply 1 of 3
    coolfactorcoolfactor Posts: 2,411member

    I think the 17e will be my next phone, upgrading from a 13 Pro. I originally got the Pro for the Lidar/3D camera features, but never really used it, so not going Pro this time around. I will keep my 13 Pro if I ever need that capability. 

    williamlondon
     1Like 0Dislikes 0Informatives
  • Reply 2 of 3
    saareksaarek Posts: 1,644member
    I just bought my daughter her first iPhone, ready for high school. It is an iPhone 16e. I wish a cheaper iPhone SE variant was around, but it was not to be. 

    It’s a good, solid phone. Should last her for years. 
    williamlondon
     0Likes 1Dislike 0Informatives
  • Reply 3 of 3
    y2any2an Posts: 257member
    Lacking in build quality? I don’t think so, Apple never turns out a shabbily built product.

    It advances the state of the art at the low end of the range. It uses an in-house modem which pushes up Apple’s margins and gives more flexibility for dealing with tariffs or discounting. It supports Apple Intelligence, which is crucial to Apple’s claim that their product range is ready for AI. It divorces from still having devices with Lightning connectors in the product mix. Not everyone wants the best camera, just an adequate one. I don’t think the 16e is for me, but I think it is for a lot of people. 11% is not to be sniffed at!
    williamlondonAlex1N
     2Likes 0Dislikes 0Informatives
Sign In or Register to comment.