Apple faces a new challenge with the introduction of the iPhone 16e, a departure from its established iPhone SE line. Consumer Intelligence Research Partners (CIRP) reports a probable change in buyer behavior compared to previous iPhone SE models. The iPhone SE historically held 5-10% of iPhone sales, attracting a specific demographic.
CIRP’s analysis says that previous iPhone SE buyers were often Android switchers, first-time smartphone owners, or existing SE owners. A notable 26% of SE buyers purchased another SE when upgrading. This data says that SE buyers commonly preferred a lower-priced, minimal-functionality device. In 2024, 19% of iPhone SE buyers switched from Android, compared to 14% of other iPhone buyers. Also, 9% of SE buyers were first-time smartphone owners, versus 2% for other iPhone models.
The iPhone 16e, with a higher price point, enters a new market segment. This change challenges the established pattern of SE sales. CIRP’s data says that the iPhone 16e may not appeal to the same consumers who favored the lower-priced SE. The $599 price of the 16e, compared to the $429 SE, could deter existing SE owners.
The report says that the iPhone 16e will need to attract a new customer base. It is probable that the 16e will draw sales from other iPhone models, both new and older. The report says that the iPhone 16e’s success relies on attracting a different kind of customer.
More here.