IPhone 16e turned out to be much more popular than the latest iPhone SE at the start of sales

In the first three days since the start of sales, demand for the Apple iPhone 16e was 60% higher than for the iPhone SE 2022 during the same period. However, IDC analysts predict that this is not enough to stop the overall decline in demand for Apple products in China. During the holiday period, Apple has already recorded an 11% drop in revenue in China. IDC expects that by the end of 2025, Apple’s sales in China will decline by about 2%.

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Nabila Popal, Senior Director at International Data Corporation (IDC), points out that one of the key factors complicating Apple’s position is the state subsidy program initiated by the Chinese government. It has allocated more than $41 billion, a significant portion of which is aimed at supporting local smartphone manufacturers. As a result, brands such as Xiaomi and Vivo have a significant advantage over Apple. The iPhone 16e is the successor to the iPhone SE, but its price has increased significantly — from $429 to $599. In the Chinese market, where buyers are increasingly opting for more affordable and technologically advanced Android devices, this creates additional difficulties for Apple.

In addition to its high price, the iPhone 16e is inferior to its competitors in a number of technical aspects. The smartphone is equipped with only one main camera, has a limited amount of internal memory, and does not support advanced AI features, which are becoming an increasingly important selection criterion for Chinese consumers. While Huawei, Xiaomi, and Oppo are actively implementing AI technologies and multi-camera systems, Apple does not offer anything fundamentally new in this model that could convince users to choose it.

To strengthen its position, Apple intends to adapt its software solutions to the Chinese market and plans to introduce Apple Intelligence in China as early as mid-2025. However, it remains unclear to what extent Chinese users will be ready to accept this product, given the strict government restrictions on working with cloud services and processing personal data, which may greatly limit the functionality of Apple Intelligence in China.

The perception of the iPhone 16e in China itself is an additional challenge. According to Bryan Ma of IDC, many Chinese consumers care not only about the functionality of the device, but also about its status. More affordable iPhone models are generally not considered a desirable purchase, since they are inferior to the flagship versions in prestige. This factor may also limit the market potential of the iPhone 16e in China. Despite the unfavorable dynamics, Apple expects revenue growth in the current quarter.

While the iPhone 16e’s prospects in China appear ambiguous, the model could play a more significant role in Apple’s strategy in India. According to IDC forecasts, it could account for up to 20% of all iPhone sales in the region in the second half of 2025. Unlike China, the Indian market is showing steady growth in demand for affordable iPhone versions. Apple is actively expanding its presence in the country by opening branded stores and increasing local production, which allows the company to avoid high import duties and offer devices at more competitive prices.