The debut of iPhone 16e Apple was surprising for two reasons: first, the company moved away from the brand “If” after almost a decade. Then he put the price of the highest economic phone number than expected at $ 599 (about $ 3,500) – a remarkable jump from the iphone if $ 429 (about $ 2,500 ).
The iPhone 16E, which will be launched on February 28, is the company’s latest effort to diversify the mobile line and prove that 18 -year -old company’s exclusive product can still attract new audiences.
The iPhone is the determining factor behind the market value of nearly $ 4 trillion from Apple, generating US $ 69.1 billion (about $ 395 billion) from US $ 124.3 billion (about $ 715 billion) in revenue that Apple reported to its first fiscal quarter of 2025.
The launch occurs after Apple’s previous economic phones were mixed successful. Data from the Consumer Intelligence Research Partners Market Research Company suggest that the iPhone accounted for only 5% of iPhone sales in the US quarter on December 31, 2024.
Globally, the iPhone was only 1% of Apple’s iPhone sales last year, according to Counterpoint Research. The iPhone Mini, a smaller and cheaper model released in 2020, was cut from the iPhone family after just two generations.
The highest price of iPhone 16e raises questions about whether it would attract buyers with a limited budget. But despite the cost, the new economic smartphone can attract more consumers, mainly because Apple is apparently following a successful strategy of about seven years ago with the iPhone XR.
Apple is taking a different direction with the iPhone 16e
The iPhone 16E has been widely perceived as a substitute for iPhone SE. It was launched during the same period when Apple historically introduced new models if, and the company removed the iPhone SE from its online store after the ad. But the iPhone 16E is more like an iPhone XR successor, which was released in 2018 along with the iPhone XS for those who wanted a more accessible device with many of the same qualities.
With the iPhone XR and now iPhone 16E, Apple has prioritized screen size, battery life and performance, instead compromised camera hardware to cut costs. This strategy was apparently worth it with iPhone XR.
It was the best selling globally phone in the third quarter of 2019, according to Counterpoint Research. Apple has not launched a new version of iPhone XR in 2019. But its state -of -the -art iPhone at the time, iPhone 11, followed many XR tips in terms of design and price.
An iPhone if next to an iPhone 12 Mini in March 2022. – Melina Mara/The Washington Post/Getty Images Although iPhone 16E is not yet for sale, some analysts believe it can be more popular than iPhone if. This is partly due to its larger screen, says Gerrit Schneemann, senior analyst at the Counterpoint Research smartphone division. The iPhone 16E has a 6.1 inch screen, the same size as the iPhone 16, while the iPhone had a 4.7 -inch screen.
“[A Apple está] giving up this type of factor less and realizing that people are interested in a larger screen, ”Schneemann told CNN . “Even if it means discarding the starting price of $ 400.”
Prior to the revelation of iPhone 16e, Ming-Chi Kuo, an TF International Securities analyst known to be explored in Apple’s supply chain, predicted that Apple’s upcoming economic phone would sell “slightly better” than the previous iPhone.
But there is reason to be skeptical. For $ 599, the iPhone 16E still imposes a high input barrier, especially compared to the price of some Android phones. And there is the question of whether iPhone 16E can damage iPhone 16 sales, as the Bank of America Wamsi Mohan analyst wrote in a note to investors on February 19.
“They need to be really careful to offer enough on this device so that it is worth $ 600 to a buyer, but not offering so much that someone who would spend $ 1,300 or even $ 1,000 the choice instead,” said Daniel Newman, CEO CEO technology research company The Futurum Group, CNN .
Why the iPhone 16E is important for Apple
Apple’s main iPhones usually steal the spotlight, and for a good reason. The most expensive Pro and Pro Max models tend to be the most popular globally, according to data from the Kantar market research company, a trend that probably keeps Wall Street happy by increasing the average selling price of the iPhone.
The iPhone 16E can help Apple reach an audience that would otherwise choose an older used iPhone or an Android phone . Also pOde to help Apple compete better in the Chinese market where it faces a fierce rivalry of regional brands such as Huawei and Xiaomi. But perhaps the most important, the iPhone 16e can be critical in the popularization of Apple technologies and applications especially because it seeks to expand your service business to reduce your iPhone revenue dependence.
Putting Apple Intelligence on iPhone 16e means that even those who don’t want to pay $ 800 (about $ 4,500) or more for a new phone can access Apple AI tools. And putting Apple Intelligence in the hands of more consumers is crucial to the iPhone manufacturer, as Google, Microsoft, Samsung and other rivals are betting everything on AI.
“Apple really needs to win,” Newman said, referring to winning Android fans and economic phones buyers. “… All your AI strategy and your intelligence strategy and your future application strategy is really where I think your greatest opportunity for growth comes.”
See everything that Apple’s artificial intelligence is able to do
This content was originally published in Understand why Apple needs iPhone 16E to be a success on CNN Brazil.
Source: CNN Brasil
Charles Grill is a tech-savvy writer with over 3 years of experience in the field. He writes on a variety of technology-related topics and has a strong focus on the latest advancements in the industry. He is connected with several online news websites and is currently contributing to a technology-focused platform.
