In India, Apple’s iPhone 16e faces stiff competition from older models
On Wednesday, Apple unveiled the iPhone 16th. The model replaces both the iPhone SE and the iPhone 14 in the company’s line -up. The new handset is the least expensive member of the iPhone 16 -Line -up, aimed at emerging markets, including India.
The second largest smartphone market in the world (behind China) has fueled an important iPhone sales, with Apple recently The top five suppliers crack In India. A week prior to the release of the iPhone 16th, however, it is unclear what impact the device will have on this important market.
In 2024, India became the fourth largest market for Apple, after the US, China and Japan, which saw 12 million shipments during the quarter, with 35% yo -growth, per IDC. It is expected that it will cross the 15 million milestone this year.
But it was not the iPhone SE of iPhone 14 that helped the Cupertino, California, the company succeeded in the South Asian market. In fact, the iPhone 15 and iPhone 13 were the highest models, with a 6% share in the total smartphone market in Q4.
Even if Apple has expanded in India, the iPhone SE has seen a proportional decline. The iPhone SE (2020) represented 18% of the total iPhone shipments in its launch year, while the iPhone SE (2022) was 6% of the total shipments two years later, according to IDC data that were exclusively shared with WAN. The iPhone 13, on the other hand, made up almost 40% of the iPhone shipments in 2022.
According to IDC, iPhone SE shipments in India refused to be negligible volume worldwide in 2023 and 2024. Neither of the two years was seen a new SE release.
Navinstar Singh, associate vice president at IDC India, says WAN that almost two-thirds of the iPhone volumes in India comes from models of the previous generation.
Android dominates India’s smartphone market, with an average smartphone of $ 259. Chinese brands such as VIVO, Oppo and Xiaomi have made great progress in the market. However, the iPhone is still a top dog in the $ 600+ market segment, followed by Samsung Galaxy smartphones. This means that the biggest competitor of the iPhone is other iPhones.
The iPhone 16th starts at 59,900 Indian rupees (~ $ 689) and goes up to $ 1,034. The older iPhone 15, on the other hand, starts at $ 804 and iPhone 16 for $ 919.
In a market like India, where older devices continue to sell, the price difference may not be sufficient to justify the choosing of the iPhone 16th over, for example, the iPhone 15, given the functions that the budget telephone sacrifices. Retailers, both offline and online, also often sell older models such as the iPhone 15 at lower prices than those of Apple to stimulate sales.
Which new functions the 16th may not offer substantial enough to attract new buyers, given the popularity of the option for similar monthly delivery (EMI), with which users can buy a high ticket item through repayment payments. About half of the customers who buy a premium handset in India ($ 400- $ 700) choose to finance their devices in this way.
“With EMI offers, the difference in real terms would prefer the iPhone 15 or 16 above the iPhone 16ee,” Singh said.
Apple has expanded Apple Intelligence to a more affordable segment with the iPhone 16th. This can help the company to manage more income from Apple Services over time. However, Apple Intelligence is currently in its infancy and in the US and only arrives in India in April.
The 16th is the newest iPhone from Apple that is assembled in India – in addition to the other iPhone 16 models. Local assembly, however, has a likely to influence prices, at least in the short term.
Sanyam Chaurasia, a senior analyst at Canalys, believed that the iPhone 16th Apple could help attract customers who would otherwise pick up an iPhone 12 or 13 – both still available via retail channels in India.
He added that younger users can also choose the iPhone 16th, instead of the older 15. “It is a model that serves a niche audience,” said Chaaurasia.
Unlike other emerging markets such as Latin America and Southeast Asia, India is not a telco-driven market where carriers subsidize smartphones by bundling them with their plans. This makes the iPhone 16th a relatively expensive option for Indian buyers.
The timing of launching the iPhone 16th also makes it less attractive, because this is not an upgrade season, which usually falls around Indian festivals in the later part of the year, Chahaasia said.
“Apple will probably have discounts on the iPhone 16th during the festive season later this year, but there would also be comparable discounts on the existing iPhone models, making them even more attractive than this new model,” he said.
